All You Need to Know About Health Insurance Cancellation Policy

Being aware of health insurance rules is as essential as buying a health insurance policy. And among such rules is about health insurance cancellation. All the policyholders who belief that their health insurance plans do not match their expectations can cancel the policy and get a refund. They can get the refund if they have not made any claim in the policy during that year.

Understanding The Cancellation Policy Of Health Insurance

Once the policyholder decides to cancel the health insurance policy, they need to provide their intent in writing to the insurance company.

• Free-Look Cancellation

The insurance company offers a 30 days free-look period in case of the online health insurance policy. For the offline policy, a fifteen-days free-look period is offered from the policy initiation date. During the policy’s free-look period, the insurance holder can cancel the plan if that person is not happy with the terms and conditions of the policy. Under the free-look period, one will get up to 100% of the amount. The insurer will subtract the amount of the number of days the person was covered, and any cost incurred by the insurer for the medical test and stamp duty.

• Cancellation of Policy After Free-Look Period

The health policy can be cancelled after the completion of the free-look period as well. If you cancel the insurance after free-look period completion you will not get a total refund of the amount.

1. 75% of the amount will be refunded to the policyholder in case of policy cancellation within a month after free-look period completion.

2. 50% of the amount will be refunded to the policyholder in case of policy cancellation within three months after free-look period completion.

3. 25% of the amount will be refunded in case of policy cancellation within six months after free-look period completion.

4. However, if one cancels the policy after completing the six months of the policy, no refund will be paid.

• Cancellation Request

When you believe that the policy is not satisfactory, you can contact the insurance company about policy cancellation. While filling the cancellation form, you should fill in information like the reason for the policy cancellation, date of receipt of the policy document, policy details, etc.

• Cancellation Process

On getting the cancellation request, the insurance company will get in touch with you to share the policy cancellation reason. Then they will process the request and initiate the refund.

Steps For Cancelling the Health Insurance Plan

Here is the step by step process to cancel the insurance plan:

• Submit policy cancellation request either offline or online
• The insurance company will contact you.
• The process of policy cancelation will start.
• The insurance company will deduct the amount based on the tenure and send the refunds.
  
  Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.