Mandatory 15 to 30 days window from policy receipt to review terms and cancel for refund if unsatisfied.
The Free-Look Period is an IRDAI-mandated trial window (typically 30 days for life/health policies) provided to policyholders after receiving the official policy document. If you review the policy terms, exclusions, or clauses and find them unsatisfactory or different from what was represented during sales, you have the statutory right to cancel the policy and claim a refund of premiums paid.
Amit receives his health insurance document on August 1st. On reading the terms, he notices a 20% co-payment clause he was unaware of. On August 10th (within the 30-day free-look window), he submits a cancellation request and receives a full refund of premium minus minimal stamp duty fees.
Free-Look cancellation grants a full premium refund (minus proportional risk cover and medical costs). Lapsing or surrendering later results in heavy financial penalties or zero refund.
Many policyholders misunderstand this clause until a claim actually occurs. Always verify the exact definitions in your policy wording schedule rather than relying on verbal marketing summaries. Disclose all material facts truthfully at the time of proposal to help ensure smooth claim assessment without non-disclosure issues.
IRDAI Master Circular mandates a 30-day Free Look Period for all life and health policies issued electronically or physically. The insurer must process cancellation within 15 days.
Always read your physical or PDF policy bond immediately upon receipt to check room rent sub-limits, PED waiting periods, and co-pay clauses before the free-look period expires.
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Transparent parameter-based policy guidance from qualified Insurance Sales Persons (ISPs) under IRDAI IMF regulations.