Free look period is a technical term basically used in insurance industry. It is defined as certain period of time which is given to policy holder to take decision whether he takes the policy or not. It is very useful provision given by the IRDA to protect the interest of policy holder. In insurance industry mis-selling of insurance product as well as policy holder some time take wrong decision which he realized after issuing policy bond is very common problem. In that case the provision “Free Look Period” allow the policy holder to think again whether he choose the right product or not, if he think that the particular product is not perfect for his or her he returned the policy and get the money back.
The IRDA has mandated minimum 15 days period for all life and health insurance policies. These 15 days period start from the day of the receipt of the policy document. Now the question is whether policy holder get return the premium which he paid and what will be the amount. As per IRDA guidelines policy holder will receive the premium amount after deducting expenses incurred. The expenses include cost of medical examination. Stamp duty and administrative charges. Policy holder only ask for refund if does not make any claim in free look period.
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