The free look period is the time given to policyholders to cancel their insurance policy without any surrender charges. If a policyholder decides to return the policy within this period, the insurer must refund the first premium paid. This step is part of the government’s efforts to reduce the mis-selling of insurance policies. The Insurance Amendment Bill is also progressing and will include details on investments and foreign direct investment (FDI) rules. The key reform under this bill is the introduction of a composite insurance license, which will allow insurers to offer multiple types of policies under a single license. The share of such complaints in total grievances also declined from 21 per cent in FY23 to 19.3 per cent of the total complaints in FY24. The bill will be introduced in the Lok Sabha in the next session of Parliament on February 14. The first hearing on the bill is scheduled to take place on February 16. The second hearing is scheduled for February 17. The third hearing will be held on February 18.
