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How to cancel a health insurance policy and get a refund?

Discover the process to cancel health insurance and obtain a refund.

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Home / Health Insurance / Article / How to cancel health insurance policy and get the refund

Sometimes, for various reasons, your health insurance policy may not meet your expectations or requirements. So, you may wonder how to end it mid-term and port to a better insurance provider.

Do you relate? If so, read ahead to find out how to cancel a health insurance policy and get a refund.

How to cancel a health insurance policy
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You can cancel a health insurance policy by informing your insurer that you wish to do so. However, the percentage of refund that you will receive will be dependent on which time in the policy cycle you have initiated the cancellation.  Also, a refund is usually applicable only if you have not raised any claims during the policy term. Otherwise, the cancellation can still be done, but without any refund.

When can I cancel my health insurance?
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As mentioned in the previous section, health insurance can be terminated at any time during the policy term. Nonetheless, there are primarily two types of cancellation processes in health insurance. Here are the details.

Cancellation before free-look period
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Free-look period in medical insurance refers to the initial 15 to 30 days after buying a health insurance policy. During this period, if the insured is not satisfied with the health plan, they can cancel it. 

However, the insurance company may subtract the stamp duty, medical checkup and insurance risk charges (calculated on a prorata basis) from the refund amount. So, you may not get the full policy premium amount refunded.

Cancellation after free-look period
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Cancellation can also be done after the free-look period has lapsed. However, you may get only a partial refund depending on the number of days you have been covered. Each insurance company may have a different refund percentage for a particular period of coverage. Nonetheless, below-listed is the common refund percentages offered by insurers.

Time of cancellation

Percentage of premium refund

Within 25% of the policy term


Within 25% to 50% of the policy term


Within 50% to 75% of the policy term


More than 75% of the policy term


Note: Refund is applicable only if you have a claim-free policy history.

How to Cancel ACKO Health Insurance Policy and get Refund?
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You can follow the below-listed steps if you wish to cancel your ACKO Health Insurance or Arogya Sanjeevani Health Insurance Policy offered by us.

Once we receive your cancellation request, we will proceed (as per the applicable terms and conditions) with the cancellation and process the applicable amount that needs to be refunded to you. The refund will reflect in your bank account within 7 to 10 working days.

Note: ACKO has a free-look period spanning 15 days (starting from the date of policy purchase). If a cancellation is initiated during this time, you will receive a full refund. After the free look period is over, refund will be initiated to you on a pro-rata basis.

Reasons to cancel health insurance policy
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Here are some of the reasons why people may consider prematurely cancelling their health insurance policy.

How to request cancellation of a health plan
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Firstly, make sure that you are certain that you want to terminate your health insurance plan. Once you are sure, inform your health insurer and initiate the cancellation process. After the health insurer is notified, usually, a cancellation form is provided. In this form you will  usually be asked to fill your policy details and state the reason for the cancellation.

Steps on how to cancel a health insurance policy
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Here are the steps involved in health insurance policy cancellation. Note that the exact process might differ from one insurance provider to another.

The refund process in health insurance
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The refund process in health insurance involves the following important points. 

Deductions in refund
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The deductions imposed by health insurance providers on the refund amount may vary from company to company. Nonetheless, below are some of the common deductions.

To sum up
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If you buy a health insurance plan, it doesn’t mean that you are stuck with it until the policy period ends. If you are dissatisfied with the service, you always have the option of cancelling your health policy. Additionally, you can also receive a refund if you have a claim-free policy history and you terminate within six months.

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The following are some of the questions that are frequently asked regarding health insurance policy cancellation.


Is it possible to cancel a health insurance policy at any time?

Yes, a health insurance policy can be cancelled at any time. However, you may receive a refund only if the cancellation is initiated within six months of the policy purchase and you have a claim-free policy history.

When should a person cancel their health insurance?

When it comes to health insurance policies, it's always recommended to avoid cancelling them and instead explore other options. However, if you must cancel, it's best to do so during the free-look period as per the policy's terms and conditions. During this period, you may receive up to 100% of the policy coverage.

What is the cost of cancelling a health insurance policy?

A health insurance policy usually does not require any cost to be cancelled. Nonetheless, enquire with your insurer to find out if there are any costs associated with policy cancellation.

Is there a penalty for cancelling a health insurance policy?

No, there is no penalty for cancelling a health insurance policy. However, refund may or may not be provided depending on the terms and conditions of the policy.

If I cancel my health insurance policy, will the premium be refunded?

If you cancel your health insurance policy within six months of its initiation, a refund will be awarded. The percentage of refund differs from insurer to insurer. So, refer to the policy wordings of your health insurance policy to find out the exact refund percentages.

What happens once a health insurance policy cancellation is requested?

Once a cancellation request is raised, usually the insurer reaches out to try to resolve the issue. If no resolution is reached or the resolution proposed is unsatisfactory to you, the cancellation process will be initiated by the insurer. Then, after deducting from the premium as per the terms of the policy, the refund will be paid to you. However, the refund will be provided only if you end it within six months of its initiation and have a claim-free policy term.

How long is the free-look period?

The free-look period for health insurance is usually around 15 days. However, this duration may vary from insurer to insurer. So, kindly refer to the policy wordings of the respective health policy to learn the exact time period.

Will my waiting period for a health condition be affected if I cancel my health insurance?

No, the waiting period for a health condition will not be affected by the cancellation of your health insurance policy. So, when you buy a new health policy, you can start from where you left off.

For example, if you have a health condition that has a 3-year waiting period and you have already served two years; then, if you terminate a health policy and buy a new one, you only have to serve one year. After that you can receive coverage for the said condition.

Instead of cancelling a health insurance policy, can I just buy another one?

Yes, you can buy another health policy in addition to your existing one. If you want to do so, note that it is more profitable to have two distinct health policies, than two policies with similar coverages. So, choose a health plan that offers different coverages to your current one.

How do I cancel my health insurance policy online?

You can cancel your health insurance policy online by visiting your insurer’s website and filling the cancellation request form. Alternatively, some insurers may demand sending an email to the customer service department to request policy cancellation.