Free Look Period in Health Insurance: A Detailed Guide

Quick Review

The free look period in health insurance is a mandatory window provided by insurance companies to new policyholders. It lets you review your policy after purchase and cancel it if it doesn’t meet your needs. During the free look period in health insurance, you have 30 days from the receipt of the policy document to review the benefits, exclusions, and terms. If you choose to cancel, you receive a refund after applicable deductions. This period, mandated by IRDAI, ensures transparency and protects you from mis-selling.

Purchasing a health insurance policy is a long-term commitment. You research, compare, and finally pick a plan that seems to fit your needs. However, what if you receive the policy document and realize the terms aren't exactly what you expected? This is where the free look period in health insurance comes to your rescue. It acts as a safety net that allows policyholders to review their purchase without the fear of being locked into an unsuitable contract.

In this guide, we will dive deep into the nuances of the free look period in health insurance, how it works, and what you should keep in mind if you decide to cancel your policy.

What is the Free Look Period in Health Insurance Policies?

The free look period in health insurance lets you carefully review a newly purchased policy to ensure it meets your needs. This provision offers peace of mind by ensuring you are comfortable with your insurance decision before committing to it long term.

When Does a Free Look Period Begin?

A common misconception is that the period starts the moment you pay the premium. However, the free look period in health insurance begins only from the date you receive the physical or electronic policy document.

As per recent IRDAI guidelines, the standard duration for this period is 30 days for policies obtained through any mode (physical or digital). Previously, this was often 15 days, but the regulator has extended it to give customers more breathing room.

For e-policies, the free look period in health insurance starts when the insurer delivers the policy to your email, SMS, WhatsApp, or portal, not when you open it or download it. You should keep delivery proof like insurer emails, messages, portal screenshots, or acknowledgment replies to avoid disputes.

Did You Know
The free look period in health insurance also applies to new multi-year policies. Even if you’ve opted for coverage spanning multiple years, you still get the same free look window from the date of receiving the policy document to review the terms and decide whether to continue or cancel.

How Does Free Look Period in Health Insurance Work?

The free look period in health insurance period applies only to new policies, not renewals, portability, or migration. You get 30 days from receipt of the policy document to examine terms, benefits, and exclusions.

During the free look period in health insurance, insurers must provide the policy document, proposal form, customer information sheet (CIS), and any other relevant documents within 15 days of proposal acceptance to help you make an informed decision.

If you haven’t made any claims, you can cancel the policy and receive a refund (not the full amount though). Deductions may include the pro-rata risk premium for coverage days, medical examination costs, and stamp duty charges.

The refund for free look cancellation must be processed within 7 days of receiving your request. However, while approval happens within this period, the refunded amount may take 10–14 working days to reflect in your bank account, depending on banking and payment timelines. Under the “Protection of Policyholders' Interests Regulations”, if the insurer delays the refund beyond the stipulated time, they are liable to pay interest at a rate 2% above the bank rate.

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How to Cancel a Health Insurance Policy During Free-look Period?

If you've decided that the plan isn't right for you, you need to act fast. Here is how you can utilize the free look period in health insurance to cancel your policy.

Contact the Insurer: Reach out to the customer support of the insurance company, your agent or visit their branch.
Fill the Form: You can cancel your policy during the free-look period by emailing the insurer or raising a request through their website or mobile app.
Submit Documents: You will need to provide your original policy document (if physical), the premium receipt, and a cancelled cheque for the refund.
State the Reason: You must provide a valid reason for cancellation (e.g., hidden clauses, better alternative found). However, the insurer must accept the free look cancellation request regardless of the reason, as long as it is within the allowed time frame.
Processing: The insurer will verify the dates to ensure you are within the 30-day window and then process the refund.

Conditions Applied on Policy Cancellation During Free-look Period

While the process is standard, certain conditions vary. For instance, the pro-rata premium deduction depends on the insurer. While most insurers deduct a small amount for the days covered, some companies, like HDFC ERGO, might waive pro-rata charges as a gesture of goodwill, though the general expectation should always be that a deduction will occur.

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Conclusion

The free look period in health insurance is a powerful tool for consumer protection. It ensures that the "final word" on the policy belongs to you, the policyholder. With a free look period, you can review your policy without financial risk and cancel it if it doesn’t align with your needs. You must act within the allowed time frame and follow the prescribed cancellation process to receive the eligible refund. Remember to read your policy document as soon as it arrives, check your insurer’s specific rules related to the free look period, and make the most of this window.

Frequently Asked Questions

Is the free look up period in health insurance applicable to all plans?

Yes, as per IRDAI regulations, all individual and family floater health insurance policies with tenure of at least 1 year must offer a free look period. However, the free look period applies only to new (fresh) policies and does not apply to policy renewals, or when you port or migrate an existing policy from another insurer.

Can I claim insurance during the free look period?

Yes, your coverage is active from the moment the policy is issued, so you can make a claim during the free look period in health insurance. However, if a claim is successfully made, you can still cancel the policy, but you will not be entitled to any refund. As per IRDAI rules, the refund option under the free look period is available only if no claim has been made. Filing a claim effectively “locks in” the policy for its full term.

If I spot incorrect details in my policy, should I cancel or request a correction?

If you notice errors such as an incorrect name, date of birth, or sum insured, it’s usually better to request a correction (endorsement) rather than cancel the policy. Cancellation should be considered only if the insurer refuses to rectify the issue or if the policy terms differ materially from what was promised.

What if I miss the 30-day deadline?

If you miss the deadline, you can still cancel the policy, but it will be treated as a regular mid-term cancellation. In such cases, the refund is calculated on a pro-rata basis provided no claims are made which results in a much lower refund amount compared to the free look period in health insurance.

What should I do if the insurer is unresponsive during the free look period?

If the insurer does not respond, you can escalate the issue to their grievance redressal cell. If the complaint remains unresolved, you may approach the IRDAI Integrated Grievance Management System (IGMS) or contact IRDAI directly through its official grievance channels.

Last updated on: 31 Jan, 2026