How To Cancel Health Insurance Policy
Published On Jul 14, 2022 10:00 AM By InsuranceDekho
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Let’s say, in case you want to cancel the health insurance plan then there are certain rules, which you should be aware of. Although you can cancel your health insurance plan anytime, without having to serve a waiting period. The refund payable to you depends on when you’ve cancelled the policy. Read further to know in detail the cancellation policy of the health insurance plan.
The insurance company offers a free-look period of 30 days, in case of the health insurance policy online and 15 days, in case of the offline policy, from the date of policy initiation. During the free-look period of the policy, the insurance holder can cancel the policy if he/she is not satisfied with the terms and conditions of the policy. Under the free-look period, one will receive up to 100% of the premium amount. However, the insurer will deduct the premium of the number of days the person was covered, also any cost incurred by the insurer for the stamp duty and medical test, if any.
Cancellation After Free-Look Period
The health insurance policy can also be cancelled after the completion of the free-look period. However, if you cancel the policy after completion of the free-look period then you will not receive a 100% refund of the premium amount.
- In case of policy cancellation within 1 month after completion of the free-look period, 75% of the premium amount will be refunded to the policyholder.
- In case of policy cancellation within 3 months after completion of the free-look period, 50% of the premium amount will be refunded to the policyholder.
- In case of policy cancellation within 6 months after completion of the free-look period, 25% of the premium amount will be refunded to the policyholder.
- In case, one cancels the policy after completion of the 6 months of the policy, no refund will be paid by the insurer.
On receiving the cancellation request made by you, the insurance company will contact you to share the reason for policy cancellation and will also suggest a possible solution. However, if you still want to cancel the health insurance policy online then the insurer will have to process the request and initiate the refund.
Steps to Cancel the Health Insurance Policy
Now that you know the rules of health insurance policy cancellation, let’s take a look at the step by step process to cancel the policy.
- Get in touch with the support department of the insurance company to submit the request for policy cancellation.
- You will need to send a written request either offline or online with the details of your policy and the reason for the policy cancellation.
- After receiving the request for policy cancellation, the insurance company will try to give you a solution regarding the same.
- If you still want to cancel the policy, the process of policy cancelation will be initiated.
- Based on the tenure for which you were insured, the insurance company will deduct the premium amount and send you the refunds.
- An official cancellation letter/email will be sent to you by the insurer.
Now if you are dissatisfied with the benefits offered by the policy and have a valid reason to cancel the policy then you can go ahead with this. Just consider the above-mentioned points while cancelling the policy. However, it is always advised not to cancel your health insurance policy, if there is a valid solution.
Also read: Learn How To Check Bajaj Allianz Health Insurance Policy Status