IRDA has mandated insurers to provide free look period of 15 days in health insurance policies having tenure of one year and above.
After life and general insurance policies, IRDA has asked insurers to provide a free look period of 15 days in health insurance policies having tenure of a year or more.
IRDA has issued a notification in which it has amended IRDA’s Health Insurance Regulation, 2013 to introduce a free look period in health insurance policies. Free-look period allows policyholders to terminate their insurance contract without paying any charges as penalty to their insurers.
However, IRDA has allowed insurance companies to deduct expenses incurred on medical examination and stamp duty during the free look in period. Also, in case a policy commences, the insurer can deduct a certain amount which is proportionate to the risk premium for the period on cover.
Apart from this, the insurance regulator has instructed general insurers and standalone health insurers to provide coverage to non-allopathic treatments like Ayurveda, Homeopathic etc. However, policyholders should undergo treatment in government recognized hospital to avail such coverage.