Insurance customers are soon going to get a great facility in the country. Those purchasing any life insurance or general insurance product can get a free-look period of 30 days. Insurance regulator IRDA has prepared a proposal in this regard. Currently, insurance customers get a free-look period of 15 days.
What is a free-look period?
Free-look period means the period during which Insurance customers get the facility to return any newly purchased product if they do not like it. Suppose you purchased a new life insurance or general insurance product. After purchasing, you noticed some flaws in that particular product or you found a better product. In such a situation, you can surrender that insurance product for a fixed period and no fee is charged from you for this. This time is called free-look period.
Existing rules of free-look period
There is already a provision for mandatory free-look period in the insurance rules. Currently, companies have to offer a free-look period of at least 15 days with every life insurance and general insurance product. For policies purchased under electronic policy or distance mode, this time is 30 days. The current rule says that companies can offer a free-look period of 30 days to all their customers, but it is not mandatory. IRDA’s proposal is to increase the mandatory condition of 15 days to 30 days.
IRDA has prepared this draft
The insurance regulator has asked the Insurance Regulatory and Development Authority of India (IRDA) for this. A draft has been prepared named Protection of Policyholders’ Interests and Allied Matters of Insurers) Regulations 2024. The draft states that insurance products purchased through any mode should have a free-look period of 30 days from the date of receiving the policy document.
Customers’ interests will be protected
IRDA says that by getting 30 days time, insurance customers will be able to understand the documents of their respective products better. After reading the documents carefully, if they do not understand anything, they can contact their respective insurance company to clarify their doubts or surrender the policy if they find any of the terms unfavorable to their interests. By increasing the free-look period, customers will be able to surrender the policy for 30 days. For this they will not have to pay any separate fee and the insurance company will refund their first premium amount in full. Also read: Income Tax issued refund of years, LIC got a profit of Rs 22 thousand crores
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