Free Look Period: How to Cancel a Health Insurance Policy?

Free Look Period in health insurance

All health insurance policies come with a free look period option. With this option, you can cancel your health insurance policy during this period. Example: A few days back, Mr Abhishek purchased a health insurance policy. He received his policy bond through courier.

But he was not happy with the terms and conditions of the policy. The policy was not as per his expectation. He read the policy bond in the details, and he got a clause of free look period option.

Mr. requested to his health insurance company to cancel the policy. He submitted all the required documents and request of cancellation within 15 days. His insurer canceled the policy and refunded the premium after some deduction.

What is the free look period?

Free Look Period is the IRDA approved provision. All kinds of health insurance policies come with this provision. It gives you the chance to review your health insurance policy after receiving the policy bond.

If you are not satisfied with the policy’s terms and conditions then you have an option to cancel your policy during this period. Normally the free look period is of 15 days.

You get this option when you purchase your health insurance policy. It is not applicable to the renewal of the policy.

How To Cancel Health Insurance Policy During the Free Look Period?

Normally, You can submit a written request letter along with the original policy bond to the insurer to cancel it. Need to mention the reason for the cancellation. You may need to submit a cancel cheque to get a refund of the premium in the account.

In case you lost the original policy bond then you can submit an indemnity bond also. You should not do any delay if you want to cancel the policy in a free look period. You have to submit the request within 15 days of receiving the policy bond.


There is a possibility that you raise policy cancellation requests after some time of receiving the policy. It may be 5 days or 7 days etc. So you are insured during this period of the time. That’s why insurance companies deduct the proportionate premium for the coverage. Normally, there are following deductions –

1- Deduction of Stamp Duty Charges

2- The proportionate risk premium

3- Expense of medical tests


You must read the policy as soon as possible after receiving it. Please review and understand the policy. You can contact your insurer if have some confusion and doubts.

Before you cancel the policy, you should understand the policy terms and conditions completely. You are not comfortable then you take a call to cancel.