How to apply for Free-Look cancellation in Insurance?

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How to apply for Free-Look cancellation in
Insurance?

• By- Insurance Samadhan

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What is free-look period?

• A free look period in Insurance policy is a 15
  days time allocated to the insured where he
  enjoys full coverage and can review the policy
  details, clarify its terms and conditions, and in
  case finds that the product does not suit the
  requirements can cancel the contact and receive a
  full refund of the premiums paid.

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• In Todays time customer satisfactions plays a
  major role across all Industries and the same
  applies to Insurance products as well. Insurance
  products are intangible in nature hence you
  cannot fell the product. Thus it makes it
  mandatory to do through the policy document once
  it is received. Read the following information
• 1.     Total Premium to be Paid annually
• 2.     Sum Assured( Insurance coverage)
• 3.     Term of Premium Payment( How many years
  the premium needs to be paid)
• 4.     Duration of the policy( Maturity Date)
• 5.     Check the Nominee details
• We at Insurance Samadhan receives lot of cases of
  mis-selling and frauds and in most cases the
  customer was not aware of the free-look period or
  was misguided of the free-look period by the
  seller. Please note that the Free-look period
  begins from the day you receive the policy, hence
  please keep the envelope in which the policy was
  delivered safe. If the agent delivers the policy,
  please sign the receiving with date.
• You can cancel the policy if you suspect a fraud
  or mis-selling or the policy is not as per your
  needs.

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How to proceed with free-look cancelation?

• 1. Keep the proof of Receiving
• The envelope of the policy should be retained as
  the free look begins from the day policy is
  received. In case you have signed receiving keep
  a copy with you.
• 2. Cancel Policy in writing
• The cancellation process of policy requires a
  written application from the policy holder before
  the end of 15 days free-look period, along with
  the other details such as receipt date of policy
  documents and reasons for cancellation. Many
  insurers have prescribed format of application
  which can be downloaded from their websites.
  Please do not rely on your agent for cancellation
  as if its delayed the refund will not be
  processed. Please write from your registered mail
  Id mentioned on the policy document to the
  customer service of the Insurance Company. The
  details of the customer service is available in
  the policy and website of the Insurer.

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• 3. Termination Charges
• Do not expect full refund of your premium even
  if you cancel the policy in free-look period. The
  insurer deducts certain expenses incurred on
  medical test, stamp duty, admin charges etc. If
  the risk cover has already commenced, the
  proportionate risk premium for the period will
  also be adjusted with your refund amount.
• 5. ULIPs cancellation process
• Unit Linked Insurance Policy (ULIPs)
  cancellation is done, by the insurer repurchasing
  the units allotted to the policy holder at the
  NAV on the day of cancellation of the policy.
  Suppose your premium was Rs.100, you insurer
  incurred expenses of Rs.20 and invested remaining
  Rs.80 in the fund option. On the day of
  cancellation the NAV has soared to Rs.90. Now the
  insurer will refund Rs.90 after adjusting charges
  towards stamp duty, medical test etc.

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Still Have Questions?

• Contact Insurance Samadhan
• Address R 104 Basement, Greater Kailash 1, New
  Delhi, 110048
• Toll Free 844-844-0626
• Email corporate_at_insurancesamadhan.com