Not happy with your new life insurance, or general insurance policy? Soon, you may get more time to return it
Let’s look at what the insurance regulator has proposed and how it is going to impact you.
What is the free-look period currently?
At present, insurance companies have to offer a mandatory free-look period of 15 days for life and general insurance policies. If it is an electronic policy or a policy sourced through distance mode, the free-look period is 30 days.
Do keep in mind that though it is not mandatory, the law gives insurance companies the option to extend the free-look period till 30 days even now.
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Free-look period rule change: What IRDAI has proposed?
In an exposure draft titled «Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests and Allied Matters of Insurers) Regulations, 2024», the regular has said, «The free look period for the policies, obtained through any mode, shall be 30 days from the date of receipt of the policy document.»
Change in free-look period: How is it going to help policyholders?
A free-look period gives you sufficient time to go through the details of your policy documents — life or general insurance. This is important as you might pay and join a policy but later realise that some clauses are detrimental to your interest or not clear. In such cases, the free-look period gives you time to either terminate the policy or get the doubts cleared from your insurer.
If you cancel the policy within the stipulated free-look period, you do not have to pay any surrender charges. Further, the
