Group Health Insurance

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You are allowed to cancel your policy anytime during the policy period provided there is no settled or outstanding claim in the policy. All you need to do is to send a written request to the insurer for cancellation along with the reason for cancellation.

The insurer accepts the following reasons for policy cancellation –

  1. Sale of assets
  2. Moving out
  3. Business closure
  4. Any other reason as stated by the insured

Upon receipt to cancel your policy request, the insurer checks for paid or outstanding claims under the policy. In case there are no paid or outstanding claims, the insurer cancels the policy and issues a refund to the policyholder. The refund premium in case of mid-term policy cancellation is calculated on the short period scale as listed below –

For a period not exceeding 15 days10% of the annual rate
For a period not exceeding 1 month15% of the annual rate
For a period not exceeding 2 months30% of the annual rate
For a period not exceeding 3 months40% of the annual rate
For a period not exceeding 4 months50% of the annual rate
For a period not exceeding 5 months60% of the annual rate
For a period not exceeding 6 months70% of the annual rate
For a period not exceeding 7 months75% of the annual rate
For a period not exceeding 8 months80 % of the annual rate
For a period not exceeding 9 months85% of the annual rate
For a period exceeding 9 monthsThe full annual rate

For example, if the request for cancellation is made by the insured after running the policy for 6 months, 70% premium will be retained by the insurer and the refund amount will be only 30% of the total premium paid upon policy cancellation.

It depends on the specific terms and conditions of the policy. Some insurance policies may allow you to cancel your policy and receive a refund of any premium paid, while others may not. In general, most policies have a “free look” or “cooling-off” period, typically 10-15 days, after the policy is issued during which you can cancel the policy and receive a full refund of the premium paid. After this period, the policyholder may not be able to cancel the policy or may only be able to do so under certain circumstances, such as if there is a material change in the policyholder’s circumstances.

However, it is important to check the terms and conditions of the policy and policy document before making a purchase. Some policies may have specific restrictions or conditions that apply to cancellations and refunds, such as a pro-rata refund for the remaining policy term, or a cancellation fee. It’s always best to contact the insurance company and speak to an agent to understand the specific terms and conditions of the policy and the process for canceling it and seeking a refund.


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