Policyholders can cancel insurance and receive a reimbursement through IRDAI.
Each line of business for an insurer should have a recognized base product.
The Insurance Regulatory and Development Authority of India (IRDAI) has announced that retail consumers can terminate an insurance policy at any point throughout the term by notifying the insurer and receiving a return for the remaining policy duration, hence offering more flexibility and freedom to policyholders.
"The policyholder is not obliged to provide a reason for policy termination if they decide to cancel. IRDAI stated on Tuesday that a number of reforms in the industry would be implemented, and that the insurer could only cancel the policy in cases of proven fraud and with a minimum of seven days' notice to the retail policyholder. It stated that each insurer should offer a retail product that is recognized as a base product and that defines the minimal coverage required in each area of operation.
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