15 Days Lock-In period for Health Insurance Policies
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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 favour 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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Rahul said:
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.inSeptember 30th, 2009 at 2:06 am
