As of now there is no lock-in or test period for the health insurance policies. That means insurance companies once sold the policies to the customer then there is no way for the customer to cancel the policy for any reason. Insurance Regulatory and Development Authority(IRDA) feels that insurance companies misusing this and selling the policies to the customer with false statements. This step is taken in favor of the customers.
As per this rules, customers will have the test period of 15 days for the health insurance policy which has the duration of three years or more. In that time if they don’t want to continue the policy, they can return it to the insurer and get their premium refunded. However the charges for health check up and any other processing fees will not be refunded. This new IRDA order will be effective from October 1,2009 for all the new policies has the duration of three years or more.
This kind of test period is already exist in the Life Insurance policy. But, not given to the Health Insurance policy holders. Also IRDA asked all the insurance companies to voluntarily give the test period to the policies less than three years too.
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September 30, 2009 at 2:06 am
Hi! Thanks for the insightful post. I think this could help a lot of people to plan their health insurance. Have been searching for tutorials on how to plan for insurance according to my budget and needs… This tool came in handy too! Enjoy
http://www.simpleinsurance.co.in
February 25, 2011 at 12:21 am
Hi,
Can you email me the rules of IRDA to cancel the new car insurance policy ASAP?
May 22, 2013 at 6:10 am
Dear Sir
I have paid Total Premium of Rs. 74712/- on 27th April,2013 wide
ICICI BANK cheque number 842203 dated 27-April-2013
I have received policy 4013/79891073/00/000 having premium amount Rs
15197/- on 20th May 2013
I have not received policy for balance amount, Please give policy
number for balance premium amount Rs.59315/- These policies are
linked to my Home Loan A/c number LBABD00001990159
I read the sum insured and to my surprise it is totally different to
what was aggreed ,
apart from above
1]Address mentioned of location of RISK is not complete and correct
3] from date mentioned in the period of risk starting ( for content &
Building) is wrong
hence please advise if these policies are covered by FREE LOCKING
PERIOD ?WHAT WILL be refund amount in case of cancellation
Thanks & Regards
Rajesh Patel
M-8000142474