Giving an exit route to health insurance policy holders, the IRDA said people subscribing to such policies with a cover for three years or more can surrender them within 15 days if they are not satisfied with the terms and conditions of the agreement.
"The insured has a period of 15 days from the date of receipt of the documents to review the terms and conditions of the policy. Where the policy holder disagrees to any of those terms or conditions, he has the option to return the policy stating the reasons for his objection," IRDA said in a circular to all general insurance companies.
The Insurance Regulatory and Development Authority (IRDA) further said that the policy holder would be entitled to a refund of the premium paid, however, expenses incurred by the insurer on medical examination of the insured persons and the stamp duty charges would be deducted.
The insurance regulator further said that in cases where risk has already commenced, the proportionate risk premium for the period on cover would be deducted from the refund at the time of returning the policy.
"Where only part of the risk (e.g. only accidental hospitalisation risk) has commenced, such proportionate risk premium shall be calculated as commensurate with the risk covered during such period," it said.
