Free Look Period In Health Insurance

A free look period in health insurance is the period of time within which you’re allowed to cancel or change your health insurance policy. This feature was introduced by the Insurance Regulatory and Development Authority of India (IRDAI) and is applicable to all long-term health insurancepolicies with a minimum tenure of 3 years or more. 

For non-electronic health insurance policies, the free look period is 15 days from the date of receipt of the policy document.

Important Update (Dated May 30, 2024) – Good news for Health Insurance policyholders! According to the Master Circular on Health Insurance Business 29052024 rolled out on May 29, 2024 by IRDAI, insurers are to decide on the request for cashless claims within 1 hour of receiving the request. Also, the final claim is to be granted within 3 hours after the policyholder’s discharge from the hospital. Insurers have been directed by IRDAI to establish necessary systems and procedures for this process by July 31, 2024.

The Master Circular on Health Insurance Business 29052024 circular is available here - https://irdai.gov.in/document-detail?documentId=4942918

The free-look period in insurance officially begins on the day the policy documents are delivered to you. It is also important to note that all seven days of the week are counted and not just the weekdays. 

This free-look Period gives people time to study the health insurance policy in-depth and make sure that everything is according to their liking. While the free-look period is mandatory for long-term policies, insurance companies offer this feature for short-term health insurance plans as well. 

It can be hard to read the whole policy document when purchasing a plan, and customers usually only look for the benefits of a health insurance policy. However, this leads to them missing out on the fine print in the policy. They can use the free-look period to go through the terms and conditions of the policy in-depth and if they are dissatisfied with something, they can cancel or change their policy.

The free-look period has been very helpful to individuals looking to purchase health insurance plans. It comes with several benefits, a few of which have been elaborated below. 

• Gives you time to go through the policy in-depth and look for any discrepancies in the fine print.

• In case you change your mind about the policy soon after buying, they have the option to cancel it as long as the policy is within the free-look period.

• During the free-look period, you can choose to upgrade to another policy or change to a different policy of their liking.

• You can get a refund for the amount you have paid for the policy, if you end up cancelling it within the free-look period.

In case you wish to cancel your health insurance plan within the free-look policy, there are specific steps you will have to follow. Here’s a quick look at the process.  

• Contact the insurance company.

• You will need to send an official email to the insurance company or to the agent you bought the policy from, requesting health insurance policy cancellation within the free-look period.

• You will need to submit certain information such as your policy documents, the registration date of the policy, and the reason for cancellation, among others.

• Once the insurance company verifies all the information and the necessary documents, they will refund your money and your policy will be effectively cancelled. 

Now, there are a couple of key conditions associated with the cancellation of health insurance policies within the free-look period. As a prospective policyholder, it is important for you to be aware of what they are. Let’s take a look.     

• Most health insurance policies mandate a medical checkup. In such cases, the insurer bears the costs incurred towards the medical tests conducted on you. Therefore, in the case of a health insurance policy cancellation within the free-look period, the insurer will refund the premium paid by you only after deducting the costs associated with your medical examination. 
  
  
• The free-look period in health insurance is only applicable on long-term policies with a tenure of at least 3 years. Also, for health insurance policies, the window is just 15 days from the date of receipt of the policy document in the case of non-electronic policies. For electronic policies, the free-look period is extended up to 30 days from the date of receipt of the policy. 

When buying a long-term or short-term health insurance plan from an insurance company, it is important to make sure that the plan has a free-look period. This way, you can safeguard yourself in the event where you’re not satisfied with the terms and conditions of the policy. 

Health insurance has become a necessity in modern times, as the cost of healthcare has increased a lot. Treatment at a good hospital could put a significant dent in your finances, but having health insurance can give financial cover in case of medical emergencies. You can take a look at the various health insurance plans available at Bajaj Markets and choose one that suits your needs.

Also Read: Best Health Insurance Companies in India 2024