What is the free look period insurance companies provide to buyers of life insurance covers?
Suresh Rana, Dehradun
You as the policyholder can cancel any insurance policy within 15 days of its receipt. In insurance parlance, this is called the free look period. The amount paid by the insured will be refunded with nil, or, in certain cases, marginal deductions by the insurer if the insured decides to rescind the insurance contract in this period after examining it.
The Insurance Regulatory and Development Authority of India has made it mandatory for all insurers to grant a free look period of 15 days to policyholders from the date they receive the policy. A life insurance policy is a long-term contract and requires the insured to commit oneself financially over a long time span. It is due to this fact that a free look period of at least 15 days is made available to the insured.
