NEW DELHI: The government has asked private insurance companies to extend the free look period for insurance policies from the present one-month to one-year period, Financial Services Secretary M Nagaraju said.
He said public sector insurers are already offering a free look period or free look policy for insurance policies. Free look period refers to a grace period that new policyholders get to review the details of their new policy and cancel it if the terms and conditions are not acceptable to them.
During the free look period, a new policy holder can cancel the policy and receive a full refund if they are eligible.
In order to further curb mis-selling on insurance products, the government has also introduced a call back policy to new policy holders from insurers. Public sector insurers, including LIC, have already introduced the call back policy, and private sector players have also been directed to follow the policy, he said.
Agencies