The Insurance Regulatory and Development Authority of India (“IRDAI”), by a Circular dated 23rd March, 2021, has modified the guidelines on Standard Personal Accident Insurance Product.
As per the modification, a clause of “Free look period” has been inserted under Section 8 – “General terms and conditions” of the policy terms and conditions of the product.
The Free Look Period will be applicable on the new policy and not on renewals. The insured will be allowed a period of 15 days from the date of receipt to the Policy to review the terms and conditions of the Policy and can return the same if not acceptable. If the insured has not made any claim during the Free Look Period, then the insured will be entitled to –
a. a refund of the premium paid less any expenses incurred by the Company on medical examination of the insured person and the stamp duty charges or;
b. where the risk has already commenced and the option of return of the Policy is exercised by the insured, a deduction towards the proportionate risk premium for period of cover or;
c. where only a part of the insurance coverage has commenced, such proportionate premium commensurate with the insurance coverage during such period.
Source : Insurance Regulatory and Development Authority of India
