Free-Look Period: Effective tool to protect yourself from mis selling

Free-look-period

You have bought a new insurance policy and received the policy document and find that the terms and conditions are not what you been told about, they are not the condition which are anyway acceptable to you. But you have already received the policy bond at your door step and your cheque is already en-cashed. What do you do? Grin and bear it?

Not at all.
IRDA has built into its regulations a consumer-friendly provision that takes care this problem.
If you have bought a policy and realise you don’t want it you can return it and get a refund

.Mis-selling

There are conditions though.

  • This applies only to Life insurance policies and
  • To Health insurance policy that are for a term of at least 3 years
  • You can exercise this option within 15 days of receiving the policy document
  • You have to communicate to the company in writing
  • The premium refund will be adjusted for
    • proportionate risk premium for the period on cover
    • expenses incurred by the insurer on medical examination and
    • stamp duty charges

Things to be kept in mind before submitting application to insurer.

  • Submit the application with in 15 days of receiving the policy bond.
  • Clearly mention which condition or conditions are not acceptable to you.
  • Please enclose your policy bond and the first premium receipt with the application.
  • Now a days companies pay electronically to customers, so ask before submitting application and also submit the cancelled cheque or copy of bank passbook if electronic payment facility is available.