Many bank customers would have had the experience of having to encounter an insurance sales person when one goes to a branch for normal banking transactions. The sales agent would try and hardsell insurance products, some of which might not be well understood by the customer.
Buying insurance could be a difficult task for many since some of the policies are a complex mix of insurance and investments. The diverse nature of offerings by insurance companies often render policies being missold to unsuspecting customers who often realise later that the document that they got was not what they understood it to be.
To protect insurance buyers, regulations for the sector provide you the option of rejecting a policy in case you have been missold. For that, you need to study the policy document that is mailed to you after the purchase and in case you feel it does not fit your needs you have the right to return it to the insurance company. However, this has to be done within the 15-day free look period.
The insurance company will have no option but to accept the returned policy and refund you the appropriate amount accordingly. You have to mention the reasons why you want to return the policy.
The insurance company, however, would make small deductions before returning the premium amount paid to you. The deductions could include the expenses incurred by the insurer for your medical examination if any, and the stamp duty charges that were incurred.
In the case of a unit linked insurance policy (ULIP), the insurer can opt to repurchase the units at the price on the cancellation date.