Free Look Period
Updated on October 4, 2023
The free look period in insurance is a valuable provision that allows policyholders to review their newly purchased policies
What is the Free Look Period in Insurance?
The “Free Look Period” in insurance is a significant consumer protection provision mandated by the Insurance Regulatory and Development Authority of India (IRDAI) that allows policyholders to review their newly purchased insurance policy and, if unsatisfied, have the option to return it for a refund within a specified timeframe. This period typically ranges from 15 days to 30 days, depending on the type of insurance policy. During this period, policyholders can assess the terms, conditions, coverage, and other details of the policy to ensure it aligns with their needs and expectations.
What are the key aspects of Free Look Period?
Duration – The free look period’s duration varies by insurance type, typically 15 days for life insurance and up to 30 days for health insurance.
No Penalty – Policyholders can cancel during this period with a full premium refund and no penalties.
Reason for Cancellation – No explanation is needed; cancellation can be due to various reasons.
Refund Process – To cancel, a written request is submitted within the free look period, and the insurer will refund the premium after deducting nominal charges.
Policy Documents – Policyholders should keep all policy-related documents, including the application form, for potential use during the cancellation process.
Why is the free look period important?
The free look period is a critical safeguard for policyholders, offering consumer empowerment and transparency in the insurance industry. It protects against misrepresentation, facilitates informed decision-making, and provides financial flexibility, allowing individuals to make well-informed choices about their insurance coverage.