Steps to Cancel Health Insurance Policy

In times such as these, especially the post-COVID era, Health Insurance should be one of your topmost priorities. Health Plans help you keep ahead of medical emergencies and the finances incurred thereof. While the need for such policies is immense, it is equally important that you be aware of the terms and conditions that come with them.

This article features important details about how a policyholder can cancel their Health Policies and the various pre- and post-cancellation formalities associated with Health Insurance in India. Policyholders can choose to cancel their insurance cover at any point in time during the coverage period without having to wait till the end of the waiting period. However, please note that the refund amount payable by the Insurance Provider is subject to when the cancellation has been done.

Should you even cancel your Health Insurance Policy?

Before cancelling your Health Policy, it is important that you evaluate your current savings, medical history and the number of dependents. Given the significant rise in Medical Inflation in the country, even the basic tests and procedures are associated with very high costs. And if you are the only earning member in the family, a family floater health plan becomes all the more critical.

In the unfortunate event that you or any of your family members is diagnosed with a critical illness, or any other Health emergency, you need a contingency in place. Therefore, we would strongly advise you to consider if cancelling a health policy in your situation is at all feasible.

Cancellation in the Free Look period

Every Health Insurance Policy comes with a Free Look period of 15-30 days, starting from the date of policy issuance. If policyholders choose to cancel their policies during this period, a sum amount of nearly 100% of the premium amount is paid to the Life Insured by the Health Insurance Provider. The Free Look period is offered solely to allow policyholders to reflect on the terms and conditions of a health plan and then decide if they want to continue with the plan for the entire duration of the policy or cancel it if they find it unsuitable to serve their needs.

Deductions in the Refund Amount

Please note that the refund amount is subject to deductions in the form of:

Cancellation after Free Look Period

You can also cancel your Health Insurance Plan after the Free Look Period of 15-30 days. However, it is important to note that in such a case, you are not entitled to receive 100% of the premium amount paid for the policy to the Insurance Provider.

How to Cancel a Health Insurance Policy?

1. Request for Cancellation.

   Once you realize that the policy bought by you does not satisfy your coverage requirements or if you find the Terms and Conditions unsatisfactory, you can reach out to the Insurance Provider. Once you communicate your request, the Insurer will ask you to fill certain forms and submit other policy-related documents.

2. Processing of Cancellation

   Upon receiving the request, the Insurance Company will contact you for further details. They might ask for information on the reason for cancellation, policy document and the date of receipt of the same, among others. They are also likely to suggest potential alternatives / solutions for your benefit. If they find your reason for cancellation valid, they will process the request and initiate a refund.

General Steps Involved in Cancelling a Health Insurance Policy

Key Questions to Ask Yourself Prior to Cancelling your Health Insurance Cover

Before you cancel, you might want to keep in mind the following factors to ensure that you are making the right decision.