IRDAI Reg Section 20 : Free Look Period of Life and Health Policies

Explanation using Example

Example 1: Understanding the Free Look Period for a Life Insurance Policy

Introduction: John, a 35-year-old software engineer, recently purchased a life insurance policy from XYZ Insurance Company. He received the policy document electronically on March 1, 2024.

Application: According to Section 20, Sub-section (1) of the IRDAI Regulations, 2024, John has a free look period of 30 days from the date of receipt of the policy document to review the terms and conditions. This means John has until March 31, 2024, to decide whether he agrees with the policy terms.

Outcome: If John finds any terms disagreeable or decides that the policy does not meet his needs, he can return the policy for cancellation as per Sub-section (3). He must provide reasons for the return and ensure no claims have been made. The insurer, XYZ Insurance, is required to refund the premium paid, minus any deductions for risk premium, medical examination expenses, and stamp duty charges, as outlined in Sub-section (4).

Conclusion: By understanding and utilizing the free look period, John can ensure that he is fully satisfied with his insurance policy. Non-compliance with the free look period terms could result in John being locked into a policy that does not suit his needs.

Example 2: Exercising the Free Look Period for a Health Insurance Policy

Introduction: Sarah, a 28-year-old graphic designer, purchased a new individual health insurance policy from ABC Health Insurance. She received the ...

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