What is a freelook period in Insurance Policy?
Freelook period is a 15 days period given to the policyholder after he receives the policy document to read the contract and if he has any doubt or questions, he may ask the customer care of the company for clarification. In case he feels that the policy sold is not as per his need or he feels what was committed during the sales process is not mentioned in the policy, he may approach the insurer to cancel his policy and take a refund of the premium.
It is very important to know that freelook period begins from the day the policy document is delivered to you. Policy document if delivered by post or courier please keep the envelope as proof of delivery date. If the advisor delivers the policy document, please sign the receiving in the policy document and put the date (Most important). Usually, policyholder just sign the receipt and return without putting the date and the same can be manipulated if someone has fraudulent intentions. In most cases of misselling the policy document is not delivered for 2-3 months and when delivered the policyholder feels that now nothing can be done. If you would have been careful in signing the receipt document of the policy, you would have a chance to avail the freelook period.
Types of policies:
Free-look period is available only for life insurance policies. For health insurance cover, the term should be minimum 3 years.
Cancellation Request and Process in free look period
You need to inform the company in writing that you need to cancel the policy within the freelook period.
Normally the company will accept and refund the premium within 15 days of the receipt of freelook cancellation form.
Denial of freelook cancellation happens only when there is a difference in company’s records. The company records have a date according to which your freelook cancellation period is over. This can happen due to wrong data entry to the courier receipt date. This can also happen when the advisor delivered the policy document late to you but updated the company record with a prior date. In both the situation, the proof of delivery is important.
Now a days Insurance companies are also sending a softcopy on the email and a message is sent to you regarding the same. You must open the softcopy and check the policy document. Here only problem that we see is wrong entry of the email Id. The softcopy is not delivered and the company record is updated that the policy is delivered. Here again you need to write to the customer care and ask about the email id being updated and if its wrong you can update the correct one. They will then send you a fresh soft copy and your freelook period begins.
If you face issues with the freelook cancellation and you have the relevant proof of delivery of policy, you may approach the grievance cell of the insurance company and they will investigate your case and provide you with the resolution.
In case they do not provide the required resolution to the complaint, you may write to IRDA for help. They will again set up the enquiry of your case with the company.
If you are sure of the proofs, you can approach Ombudsman for resolution or may proceed to various courts
Insurance Samadhan also helps in getting your freelook cancellation refund by presenting the fact correctly with the company and IRDA for a hassle-free resolution while you sit at home and we do all the work.
Insurance Samadhan has a team of experts who will guide you and ensure maximum claim. Contact us in case of any claim dispute for early resolution.
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