Insurance regulator IRDA today asked all life insurance companies not to deduct any premium while giving back the money to the customer who wants to cancel the policy within 15 days of opting for it.
?… all life insurance companies are hereby directed not to deduct any proportionate risk premium in cases where the insured exercises the option of returning the policy within the free-look period,? IRDA told all life insurance companies in a circular today.
Free-look period is a 15-day time given to customers to decide whether to return the policy or not.
At present, if customer decides to return the policy within 15 days, his premium for the days he has kept the policy is deducted, besides certain other costs and the balance is returned to the policy holder.