1. Free-look period
IRDAI mandates a 15-day free-look period for every new policy. You can cancel within this window for a full refund, minus:
- Stamp duty charges
- Cost of medical examination (if any)
- Proportionate premium for the days covered
The 15 days start from the date you receive the policy document — not the date of payment.
2. Mid-term cancellation
You can cancel a policy any time after the free-look period. Refunds are calculated using the insurer's short-period scale — the longer you've held the policy, the smaller the refund. Health policies typically refund 50% if cancelled in the first 6 months, 25% in months 7-12, zero thereafter.
3. Cancellation by insurer
An insurer can cancel only for material misrepresentation, fraud, or non-disclosure of material facts at proposal stage. In such cases, the full premium is typically forfeited. You have the right to dispute via the IRDAI Ombudsman.
4. How refunds are processed
- Initiated within 5 working days of cancellation approval.
- Credited to the original payment instrument.
- Bank credit typically takes an additional 3-7 working days.
- Track status in Account → Payments → Refund status.
5. Contact for cancellation
Email cancellations@klarocare.in with your policy number and reason. Our advocacy team will handle the request with the insurer on your behalf.