5 min read
Updated on Sep 23, 2022
There was a time when having a health insurance was considered as a symbol of opulence. The rich and famous could afford buying insurances and the common middle class people never considered it as a necessity. However, things have changed entirely now and almost everyone with a decent job and salary wants to buy an health insurance to cover himself/herself as well as to cover his/her family so that they don’t have to undergo any untoward situation due to lack of funds in case of any medical emergency. And since medical emergencies can knock anyone at any time, it is important for everyone to have a medical insurance for self and for family.
Moreover, insurances are no longer thought to be optional, rather they are termed as requisites for everyone. Having said that we would advise you to buy a medical health insurance policy after carefully understanding the service terms of your plan.
Also Read: Standalone Policy vs. Critical Illness Rider
In this blog, we are talking about the various terms and conditions of a health insurance policy and Health Insurance Policy Cancellation terms.
There are certain rules that you must know in case you want to cancel your health plan. Though cancelling a plan doesn’t require you to serve a notice period, but the refund of the policy that you should receive from the insurance company depends on certain things as discussed below.
Free-look period is the 30-days time period that an insurance company provides to their customer in case of online health insurance policies and in case of offline policies, this period is of 15 days. If a consumer feels unsatisfied with the policy, then he/she can cancel the policy during the free-look period as per rules of the insurance sector. If a policy is cancelled within the free-look period, the insured person receives almost the entire amount of premium as refund. But the insurance company will deduct the premium for the number of days you have received coverage under the insurance policy that you are willing to cancel. Moreover, they will also deduct the charges on medical tests conducted on you and the stamp duty expenses.
You can cancel your health insurance policy even after the completion of the period of free-look. However, in this case you will not receive 100% refund on premium.
Here are some more information:
If after buying a policy, you realize that it is not serving your purpose well and not worth the money spent, you can get in touch with the health insurance company and cancel your policy. In some policies, the cancellation process is initiated through standard cancellation form that you must fill within the period of free-look and also cite the reason for your cancellation in the form along with offering details of other policy related documents.
Once the health insurance company receives your cancellation request, they would like to know the reason of your cancellation before proceeding further. They would also try to resolve your issue by offering a solution so that you continue with the policy. However, the decision is up to you whether you want to continue using the policy or would like to cancel it. And if you decide to cancel the policy, the company would proceed with your request and start the process of refunding.
Here’s the step-wise policy cancellation rules to follow:
Depending on the health insurance company, the refund rules differ. But in most cases, the agency deducts a certain amount and refunds the rest amount to the consumer. The charges that are deducted are as follows:
Now you know the rules of cancellation of a health policy and how to cancel health insurance policy. However, it is better to compare the different policies while planning to buy a health insurance so that you can choose the best policy offering maximum benefits and coverage or the one that suits you most.
However, in case you still feel that you are not satisfied with the policy and you have chosen the wrong policy for you and your family, you can go ahead with policy cancellation. Just remember the points mentioned above while getting the cancellation done.
Also, most importantly, always keep in mind that cancelling without a valid reason won’t be a good idea. So, don’t cancel a policy if you don’t have a good/valid reason.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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