What Is the Free Look Period, and How to Use It
Team Zyra
Oct 05, 2025
7 min read
Contents
What Is the Free Look Period?
IRDAI Rules: 30 Days for All
How to Use It: Step by Step
What Refund Do You Get?
Across Policy Types
What to Check
Common Mistakes
FAQs
Share
Quick Answer
The free look period is a mandatory window - set by IRDAI - during which you can cancel any new insurance policy and receive a refund. You do not need to give a reason.
Duration: 30 days from receipt of the policy document for all policies (online and offline).
Refund: you get back the full premium minus stamp duty, proportionate risk premium for days covered, and medical examination costs (if any). The rest is returned to you.
You Have the Right to Cancel
IRDAI Mandate
Every insurance policy sold in India comes with a built-in cancellation window. This is not a favour from the insurer - it is a mandate from IRDAI. Every life insurer, health insurer, and general insurer is required to offer it. If an insurer refuses a free look cancellation within the valid window, that is a regulatory violation you can report to IRDAI.
If you receive a policy and realise it's not what you expected - wrong coverage, different terms, or simply a change of mind - you can cancel it and get most of your premium back. No penalty. No questions asked.
What Is the Free Look Period in Insurance?
The free look period is a mandatory review window that begins from the date you receive your insurance policy document. During this period, you can read the policy terms carefully - and if you're not satisfied, cancel the policy and receive a refund.
It applies to new policies only. Renewals do not qualify for a free look period.
IRDAI introduced the free look period to protect policyholders from mis-selling - situations where an agent oversells benefits, understates exclusions, or misrepresents the policy terms. The free look period gives you time to verify that what you received matches what you were promised.
The period starts from the date of receipt of the policy document - not the date of purchase. If your policy was dispatched by courier and you received it 5 days after purchase, your free look period starts on the day you received it.
IRDAI Rules: 30 Days for All Policies
Effective 1 April 2024, IRDAI standardised the free look period to 30 days for all policies, regardless of how they were sold.
| Policy Channel | Free Look Duration |
|---|---|
| All policies (online, offline, agent, branch, aggregator) | 30 days |
| Online / distance marketing (website, aggregator, phone, email, courier) | 30 days |
| E-policies (PDF delivered to email) | 30 days |
Practical rule: whether you bought online through the insurer's website, PolicyBazaar, or any aggregator - or an agent visited you - you have 30 days.
IRDAI reference: IRDAI's Master Circular on Protection of Policyholders' Interests (September 2024) extended the free look period to 30 days for all electronic policies (e-policies). If your policy was delivered as a PDF to your email, you have 30 days regardless of how it was sold.
How to Use the Free Look Period: Step by Step
- Read the policy document carefully. Check the coverage, exclusions, waiting periods, premium payment terms, and sum assured or sum insured. Compare what you received against what the agent or website described.
- Decide before the deadline. Note the date you received the policy document. Count 30 days from that date. Your cancellation request must reach the insurer before this deadline - not just be sent.
- Submit a written cancellation request. Write to the insurer stating that you wish to cancel the policy under the free look period. Include your policy number, name, and reason (optional - you are not required to give one). Send via email to the insurer's customer service address and keep the acknowledgement.
- Return the original policy document. Most insurers require you to return the physical policy document (or confirm receipt of the e-policy). Submit it along with your cancellation request or as instructed by the insurer.
- Receive your refund. IRDAI requires insurers to process free look refunds within 7 days of receiving the cancellation request. The refund is credited to the bank account linked to your policy or the account from which the premium was paid.
What Refund Do You Get?
Three deductions are permitted from the premium refund:
- Stamp Duty - a small government charge on the policy document. Typically Rs.100-Rs.500 depending on the state and policy type. Non-refundable.
- Proportionate Risk Premium - the cost of insurance cover for the days the policy was in force before cancellation.
- Medical Examination Costs - if the insurer arranged and paid for a medical test as part of underwriting, they can deduct the actual cost. Typically Rs.500-Rs.2,000 for basic tests.
Everything else is refunded.
Worked Example: Proportionate Risk Premium Calculation
Annual premium: Rs.12,000 | Days covered before cancellation: 10
Deduction = Rs.12,000 / 365 x 10 = Rs.329
For most early cancellations, total deductions are under Rs.1,000-Rs.2,000.
For ULIPs: the refund is based on the NAV (Net Asset Value) of units allocated at the time of cancellation, minus the deductions above plus any fund management charges. If markets have moved since purchase, the refund amount may differ slightly from the premium paid.
Free Look Period Across Policy Types
| Feature | Life Insurance (Term / Endowment) | Health Insurance | ULIP |
|---|---|---|---|
| Duration | 30 days | 30 days | 30 days |
| Refund basis | Premium minus deductions | Premium minus deductions | NAV of units minus deductions |
| Deductions | Stamp duty + risk premium + medical costs | Stamp duty + risk premium + medical costs | Stamp duty + risk premium + fund management charges |
| Applies to renewals? | No - new policies only | No - new policies only | No - new policies only |
| Process | Written request + return policy document | Written request + return policy document | Written request + return policy document |
| Refund timeline | 7 days from cancellation request | 7 days from cancellation request | 7 days from cancellation request |
Group health insurance (employer-provided): the free look period does not apply to individual employees. It applies to the policyholder (the employer). If you're covered under a company group plan, this provision does not apply to you personally.
What to Check During the Free Look Period
The free look period only helps if you know what to look for. Work through every item before the window closes.
- Sum assured or sum insured: does the amount match what you were told at the time of sale?
- Premium payment term: how many years do you pay? Is it the same as the policy term, or shorter (limited pay)?
- Exclusions: what does the policy NOT cover? Look for the exclusions section - not the benefits page.
- Waiting periods: what conditions have waiting periods? Are pre-existing diseases covered, and after how long?
- Sub-limits: does the policy cap room rent, specific treatments, or procedures below the sum insured? Sub-limits can dramatically reduce your actual claim payout even when your sum insured looks adequate.
- Nominee details: is the nominee name spelled correctly? Is the relationship correct?
- Riders: were any riders added without your knowledge? Check the premium breakdown - each rider adds to the cost.
- Policy term: is the coverage period what you agreed to - 20 years, 30 years, or until age 65/75?
- Claim process: does the policy document describe the claim process clearly? Is there a helpline number?
Common Mistakes During the Free Look Period
- Missing the deadline. The most common mistake. Count from the date of receipt - not purchase. Set a calendar reminder the day you receive the policy.
- Assuming the full premium is refunded. Deductions apply. The refund is almost always close to the full premium - but not exactly equal. Calculate the expected deduction before deciding.
- Not keeping proof of receipt. If you receive the policy by email, note the timestamp. If by courier, keep the delivery receipt. This is your evidence of when the free look period started.
- Cancelling verbally. A phone call is not enough. Submit a written request - email with read receipt, or registered post. Keep the acknowledgement.
- Not using the free look period when something feels wrong. If the policy terms don't match what you were told, use the free look period. That's exactly what it's for. Mis-selling at purchase is one of the root causes of claim disputes and rejected claims down the line.
Frequently Asked Questions
What is the free look period in insurance in India?
The free look period is a mandatory cancellation window granted to every new insurance policyholder in India. Set by IRDAI, it lets you cancel a policy within 30 days of receiving the policy document and receive a refund of the premium paid - minus small deductions for stamp duty, risk premium, and medical costs.
What deductions are made on a free look period refund?
Three deductions are permitted: (1) stamp duty, typically Rs.100-Rs.500; (2) proportionate risk premium for the days the policy was active; and (3) medical examination costs if the insurer arranged tests. Everything else is refunded. For most early cancellations, total deductions are under Rs.1,000-Rs.2,000.
Can I cancel a health insurance policy during the free look period?
Yes. The free look period applies to individual health insurance policies just as it does to life insurance. You have 30 days from receipt of the policy document. The refund calculation is the same - premium minus stamp duty, proportionate risk premium, and medical costs.
Does the free look period apply to policy renewals?
No. The free look period applies only to new policies. When you renew an existing policy, the free look provision does not apply. If you want to switch insurers or plans, you need to do so at the renewal stage - not via a free look cancellation.
What happens if the insurer refuses a free look cancellation?
An insurer refusing a valid free look cancellation within the permitted window is in violation of IRDAI regulations. You can file a complaint with IRDAI directly via the Bima Bharosa portal (bimabharosa.irdai.gov.in) or call the IRDAI helpline at 155255. You can also approach the Insurance Ombudsman in your region for resolution.
The Free Look Period Is Your Right: Use It
The free look period is one of the most consumer-friendly rights in Indian insurance - and one of the least used. Most policyholders either don't know it exists or don't use it because they're unsure of the process. Now you know both.
If you've just received a new policy, open it today. Read the exclusions, the waiting periods, the sub-limits, and the premium payment terms. If anything doesn't match what you were told - or if you simply want to understand what you've bought - the free look window is your opportunity.
Not sure what your policy actually says? Upload it to Zyra. It reads the fine print - exclusions, sub-limits, waiting periods, riders - and tells you in plain language exactly what you're covered for. Know before the free look period closes.
