Insurance Contract – refund if purchaser out of station for 15 days

Tilak Marg Forum for Legal Questions Forums Constitutional Law Insurance Contract – refund if purchaser out of station for 15 days

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    • #3516

      If the purchaser of a mis-sold insurance policy, is out of station, during the return period of 15 days, will it step on his fundamental rights to life and mobility

    • #3537

      Return of the policy and refund will depend on the terms of the insurance policy. Generally, the period of 15 days (for refund in case of wrongly sold policy) is counted from the date of receipt of the policy document. To given an example, for the ICICI Pru Cash Advantage – UIN Non-linked Life Insurance Plan, the terms of the police lay down as under:

      “You have an option to review the policy following receipt of the policy document. If you are not satisfied with the terms and conditions of this policy, please return the policy document to the Company for cancellation within • 15 days from the date you received it, if your policy was not purchased through Distance marketing* • 30 days from the date you received it, if your policy was purchased through Distance marketing* On cancellation of the policy during the freelook period, we will return the premium subject to the following deductions: a) Stamp duty under the policy b) Expenses borne by the Company on medical examination, if any The policy shall terminate on payment of this amount and all rights, benefits and interests under this policy will stand extinguished. *Distance marketing includes every activity of solicitation (including lead generation) and sale of insurance products through the following modes: (i) Voice mode, which includes telephone-calling (ii) Short Messaging Service (SMS) (iii) Electronic mode which includes e-mail, internet and interactive television (DTH) (iv) Physical mode which includes direct postal mail and newspaper and magazine inserts and (v) Solicitation through any means of communication other than in person.”

      So, the period is counted from the date of receipt.

      You have to check the terms of the policy which has been wrongly sold to you.

      But, in any case, even if there is some delay in returning the policy document due to your being out of station, you may still write to the company concerned, giving full details of the reasons why the policy was wrongly sold to you and why you could not return it earlier. My experience has been that the company may still allow you to cancel the insurance policy and give you refund if there was some false representation or some fraud, etc., in the sale of the policy, or if it was wrongly sold to you.

           


      Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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