IRDAI proposes increasing free-look period to return insurance policies

Vijay C Roy

Chandigarh, February 15

Coming to the aid of policyholders and to curb misselling, the Insurance Regulatory and Development Authority of India (IRDAI) has proposed to extend the free-look period, i.e. the time during which policyholders can return insurance policies, from the current 15 days to 30 days now.

This is one of the policies proposed to ensure protection of policyholders’ interest, as many times customers find the policy bought is not suitable to them. If the policyholder decides to return the policy, the insurance company has to refund the premiums paid at the time of purchase after deducting the proportionate risk premium, if any applicable during the free-look period, besides charges linked to medical check-ups.

“We really appreciate this move of IRDAI. It again reinforces the customer centricity of our insurance regulator in ensuring transparency for policyholders. We are in the favour of making the free-look period to 30 days a standard for all life and health insurance policies,” said Apaar Kasliwal, executive director, PolicyBoss.com.

Protecting consumers

With an aim to protect policyholders’ interest, the insurance regulator wants that the time during which policyholders can return insurance policies should be extended from current 15 days to 30 days