When you are contemplating buying a health plan, it is important to know the terms and conditions. You may check for common terms like sum insured (SI), premium, policy benefits, waiting period, and inclusions and exclusions.
However, an often overlooked term is the cancellation of the policy. Do you know that if you are not convinced that the chosen plan meets your expectations, you may cancel the same?
Canceling a health insurance plan
You may cancel your cashless health insurance plan at any point, provided you have made no claims during the policy period. There are two instances when you may cancel the policy:
- During the free-look period
Every insurance company provides a 15-day free-look period to allow you to read and review the policy document and understand all the terms and conditions. If you are not satisfied with the medical insurance plan, you may request for cancellation. The insurer will refund your premium after deducting the stamp duty charges, medical examination costs, and the amount proportionate for the number of days when you were covered under the policy.
This duration begins from the date you receive the policy document, and it is an important detail to remember in case you wish to cancel the health policy. This period is available only when you first purchase the insurance policy anddoes not apply to renewed plans.
- After the end of the free-look period
You may think that you are unable to cancel the health cover once the free-look duration is over. However, insurers allow you to cancel the policy even after this tenure. The company will refund the premium after deducting the proportionate dues for the time during which the coverage was availed.
The refund amount is as follows:
- Within one month from the date of purchase: 75% of the premium paid
- Within three months from the date of purchase: 50% of the premium paid
- Within six months from the date of purchase: 25% of the premium paid
It is important to note that in both these instances, you should not have made any claim under the policy.
Steps to cancel the health insurance policy
- Submit a cancellation request to the insurer’s customer support team
- Provide an online or offline request for cancellation by giving complete details of the policy and stating the reason
- Resolve any issues before initiating the cancellation procedure
- Receive the refund after the deduction of the proportionate premium and expenses
After this, the insurer will send an email and a letter confirming your cancellation request.
Check the terms and conditions about the cancellation in your mediclaim policy before buying a comprehensive health plan to avoid issues later.