Understanding Your Free-Look Period: Your 30-Day Right Under IRDAI Regulations 2024

What is the free-look period?

The free-look period is a window after you buy an insurance policy in which you can cancel it without penalty. If the policy does not match what was sold to you, or if you simply change your mind, you can return it and get a refund. Under the IRDAI (Protection of Policyholders' Interests) Regulations 2024, this window is 30 days from the date you receive the policy document.

Before 2024, the free-look period was 15 days for paper policies and 30 days only for electronic policies. The new rule makes it 30 days across the board for the policies that qualify.

Which policies qualify?

Life and health policies with a term of one year or more qualify — the one-year condition applies to both. General insurance — motor, travel, fire, property — has no free-look period; it has its own cancellation right instead (cancel any time, pro-rata refund of the unexpired premium). For group covers and renewals the position is less clear-cut — ask your insurer rather than assuming.

What refund do you get?

You get back the premium you paid, minus:

• A proportionate risk premium for the days the policy was active
• The medical examination cost (if any)
• The stamp duty paid

For unit-linked plans the refund is made by repurchasing your units at the Net Asset Value on the DATE OF CANCELLATION, less the same three deductions above — not the fund value plus charges back.

How to cancel under free-look

1. Write a clear cancellation letter. State your policy number, your name, and one sentence: "I wish to cancel this policy under the free-look period."
2. Send it to your insurer within 30 days. Use email and registered post. Keep proof of dispatch.
3. Return the original policy document if you received a paper copy.
4. Share your bank details so the insurer can refund you. The refund must be processed within 7 days of your request — and if it is late, the insurer owes you interest at the RBI Bank Rate plus 2% on the refundable amount, from the date it received your request until it pays, suo-moto and without you having to ask.

When insurers push back

Some agents discourage cancellation. Some insurers delay the refund. Both are violations of IRDAI rules.

If your refund is not paid within 7 days of cancellation:

• Send a grievance letter to the insurer's Grievance Redressal Officer
• If unresolved in 14 days, escalate to IRDAI's Bima Bharosa portal
• Then escalate to the Insurance Ombudsman of your zone

How BimaHaq helps

Many policyholders miss the free-look window because they do not read the policy document. We review your policy, flag any mis-selling, and help you draft your cancellation letter — within 5 working days. Use our free Claim Direction Check if you suspect mis-selling on a recently purchased policy.

Bottom line: 30 days. One letter. Full refund minus small adjustments. Know the right. Use it.