Mumbai, Sept. 3 If you buy a health insurance policy and realise that you are not agreeable with the terms and conditions then the same can be returned to the general insurance company within 15 days of subscription.

In a customer friendly move, the Insurance Regulatory and Development Authority (IRDA) has introduced a 15-day free-look period for customers buying health insurance products of three years or more. The free-look facility will come into effect for all policies issued or renewed on or after October 1.

This free look period was so far offered only by life insurance companies.

The insured can return the policy within 15 days from the receipt of documents if the policyholder disagrees to any of the policy’s terms or conditions, IRDA said in a notification.

The policy holder will get a refund of the premium paid with only the expenses incurred by the insurer on medical examination of the insured person and the stamp duty charges deducted from the premium.

In cases where the policy has already come into force, the proportionate risk premium for the period on the cover will also be deducted from the premium refund.

Customers can return the policy if the specifications he wanted are missing from the policy, said Mr S.L. Mohan, Secretary General, General Insurance Council.

The free-look is only applicable on long term policies issued by general insurers, which is not very large in number, said Mr N.K. Kedia, Director, Marketing, IFFCO Tokio General Insurance.

Source : http://www.thehindubusinessline.com/2009/09/04/stories/2009090451300600.htm