- Home
- /
- Health Insurance
- /
- Articles
- /
- Steps To Cancel Health Insurance Policy
TollFree No. : 1800-4200-269
Steps to Cancel Health Insurance Policy
- Cancellation in Free Look Period
- Enjoy complete refund on Cancellation
- Policy cancellation and Processing by Insurer
Buy Policy in just 2 mins
2 lakh + Happy Customers
Free Comparison
×
Confused? No Worries, We Are Here To Help!
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:
- The prorated risk premium for the number of days the Life Insured was covered
- Expenses incurred by the Health Insurance Company on medical examination
- Stamp Duty and Administrative charges
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.
- Within 1 monthIf you were to cancel your policy within 1 month after the completion of the Free Look Period, you are eligible to receive up to 75% of the premium amount paid by you.
- Within 3 monthsIf you were to cancel your policy within 3 months after the completion of the Free Look Period, you are eligible to receive up to 50% of the premium amount paid by you.
- Within 6 monthsIf you were to cancel your policy within 6 months after the completion of the Free Look Period, you are eligible to receive up to 25% of the premium amount paid by you.
- After 6 monthsIn case you decide to cancel your policy on completing 6 months of the policy term, the Insurer is not liable to pay any benefits to you.
How to Cancel a Health Insurance Policy?
-
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.
-
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
- Submission of CancellationYou can get in touch with the support department of the insurance provider to submit your cancellation request.
- Written Request with ReasonYou will mostly be asked to send a written request offline or online with your policy details and reason for cancellation.
- Initiation by InsurerAfter receiving the cancellation request, the insurer will generally try to provide you with a solution if you have any problems with the policy. But if you still want to cancel the policy, the cancellation process will be initiated.
- Deductibles and RefundBased on the period for which you were insured, the insurer will deduct the premium and send you the refund.
- Official Intimation by InsurerYou will also receive an official cancellation email/letter from the insurer.
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.
- Reason for CancellationIt is important to identify the underlying reason as to why you want to drop the health cover. Note that policy cancellation is subject to how valid your reason is. Some of the more acceptable reasons are death of the Life Insured, misselling of policy by agent, financial problems, etc.
- Health Insurance PortabilityA lot of Health Insurance Providers offer the option to port your existing policy to a different provider. If you have found a similar cover at a cheaper premium, you can request your current insurer to port the policy.
- Current SavingsWith the rise in medical inflation, cost of healthcare has been and will continue witnessing an increasing trend in the foreseen future. Therefore, the importance of Health Insurance cannot be undermined and if you are planning to cancel your health cover, you should have a strong financial safety net to fall back on in case of an emergency.
- Additional Health PlansIf you already have another cover to protect yourself in case of a medical illness, it is probably a little safer for you to drop an unsatisfactory insurance policy. However, make sure that you don't compromise on the coverage.
- Number of DependentsIf you have children or a spouse or parents who are dependent on you and your wellbeing, it is absolutely essential that you keep your Health Insurance Policy. Further, if there is a medical history and anybody in your family is at high-risk, we strongly advise you to reconsider your decision to drop the plan.
- Refund AmountWhen you have firmly decided to cancel your Health Policy, it is advisable to check the amount of refund you will receive. If it is negligible, you can wait till the grace period of 30 days. If you don't pay your premiums to renew your existing health policy within the 30 days grace period, your policy stands cancelled automatically.
Steps to Cancel Health Insurance Policy:FAQs
1. Can I cancel my Insurance policy and get my money back?
If you have paid your premium and canceled your policy before the end of the term, the Insurance Company is obligated to refund the remaining balance based on the validity of the circ*mstances. Please read the article for more clarity or reach out to your Insurance Provider.
2. Can I cancel my Health Insurance anytime I wish to?
While it is advisable to not drop a Health Insurance policy, you have the liberty to cancel it at any point in time during the policy period. However, please note that the refund amount will differ based on when the policy was cancelled.
3. What is the difference between grace period and free look period?
Free Look period is offered at the start of policy inception. It ranges from 15-30 days and if policyholders find the Terms and Conditions of their policy to be unsatisfactory, they can cancel the policy and receive 100% of the premiums back.
On the contrary, Grace Period is offered at the end of the policy term to allow policyholders time to renew their policies. It is mostly fixed at 30 days by Health Insurance Providers in India.
4. Will I get a full refund if I cancel my Health insurance after the free-look period?
No, when you cancel your policy after the completion of the free-look period, you will not get a full refund. The company will charge a cancellation fee (varying from insurer to insurer), and will then refund the remaining amount.
Health Insurance Companies
Star Health Insurance
Care Health Insurance
Aditya Birla Health Insurance
HDFC ERGO Health Insurance
Apollo Munich Health Insurance
Niva Bupa Health Insurance
ICICI Lombard Health Insurance
Tata AIG Health Insurance
Bajaj Allianz Health Insurance
SBI Health Insurance
Royal Sundaram Health Insurance
ManipalCigna Health Insurance
Reliance Health Insurance
IFFCO Tokio Health Insurance
Future Generali Health Insurance
National Health Insurance
United India Health Insurance
New India Health Insurance
Navi Health Insurance
ACKO Health Insurance
Digit Health Insurance
ZUNO General Insurance
Universal Sompo Health Insurance
Liberty Health Insurance
Kotak Mahindra Health Insurance
Magma Health Insurance
Cholamandalam MS Health Insurance
Oriental Health Insurance
Raheja QBE MS Health Insurance
Know More About Health Insurance Companies
Health Insurance Articles
Arogya Karnataka SchemeAug, 2023
Does Health Insurance Premium Increase Every Year?Aug, 2023
Add-On Covers In Health InsuranceAug, 2023
Pre and Post-Hospitalisation Expenses In Health InsuranceAug, 2023
Swasthya Sathi SchemeAug, 2023
CM Comprehensive Health SchemeAug, 2023
Biju Swasthya Kalyan YojnaAug, 2023
Janani Suraksha YojanaAug, 2023
Does Health Insurance Cover Infertility Treatment?July, 2023
Yeshasvini Health Insurance SchemeJuly, 2023
Mahatma Jyotiba Phule Jan Arogya YojanaJuly, 2023
Advantages and Disadvantages Of Health InsuranceJuly, 2023
See More Health Insurance Articles
Compare Health InsuranceDec, 2023
Loading in Health InsuranceNov, 2023
Employee State Insurance SchemeMay, 2023
Central Government Health SchemeMay, 2023
Top 5 Maternity Insurance Plans in IndiaJune, 2021
Coverage for cancer care expensesJune, 2021
Health Insurance for Women in IndiaMarch, 2022
Is Cataract Surgery Covered In Health Insurance?November, 2019
Dental Insurance - Covers and Benefits in IndiaDecember, 2019
Health Insurance Policy for Disabled PersonMay, 2019
1 Crore Health Insurance PlanJuly, 2020
Health Insurance For DiabeticsMay, 2019
Health Insurance For Your Newborn ChildJune, 2019
Health Insurance For Asthma PatientsNovember, 2019
Mental Illness - How Much Is Covered In Health Insurance?May, 2021
October, 2021
See More Health Insurance Articles
What Our Customers Have to Say
Raghoba Phadke
Guwahati
April 8, 2024
PolicyX made me buy the Niva Bupa Reassure 2.0 health policy. And the customer care executives are so soft-spoken and compassionate about their customer needs.
Akshat R Verma
Allahabad
April 8, 2024
PolicyX suggested buying Niva Bupa Senior First health insurance for my old age parents. I& 039;m happy to gift them good health, thank you PolicyX.
Akash Banerjee
Pune
April 8, 2024
The team of PolicyX is always open to clear any doubts. I highly recommend buying Niva Bupa health policy from them.
Sarthak Parmal
Delhi
April 8, 2024
I bought Niva Bupa health insurance for my parents, thanks to PolicyX that now I can be prepared for their health needs.
Trishna Rohilla
Bengaluru
April 8, 2024
I got hospitalized due to an accident and my base policy was not sufficient for treatment. So, PolicyX made me buy the Niva Bupa Health Recharge add-on plan. Now, I’ll be prepared for any...
Sunaina Khanna
Ahmedabad
April 8, 2024
All my queries related to claim settlement ratio for Niva Bupa and claim process were resolved by PolicyX insurance agents
Prakash Kaur
Hyderabad
April 8, 2024
PolicyX helped me with all my queries regarding the Aditya Birla Active Essential Plan and helped me with the buying process. I am so grateful.
Radhika Aneja
Coimbatore
April 8, 2024
With the help of PolicyX, I got my health insurance policy from Aditya Birla Health Insurance. They answered all my queries without any hesitation and helped with every process.
You May Also Know About
Health Insurance India Best Health Insurance Companies Best Health Insurance Plans Best Family Health Plans Critical Illness Insurance
