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 of the policy cancellation 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.

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