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How to Write a Personal Health Insurance Cancellation Letter?


Summary

Personal Health Insurance Cancellation Letter

Personal health insurance cancellation letter is the letter written to the insurance company by the insured customer to cancel his/her personal health insurance policy due to any of the reasons whatsoever. The personal health insurance cancellation sample letter is provided in this article which can be used to intimate the insurance company regarding your personal health insurance cancellation. 

Personal health insurance policy is the most sought after insurance policy after the coronavirus pandemic in India. There has been a phase where the sales of health insurance policies have skyrocketed in India during the lockdown and after lockdown phases.

The rise in number of health insurance sales can be attributed to the fear of coronavirus as there was no proper treatment for the pandemic and the hospital bills were different for different regions. There was no uniformity in the hospital bills which led to people secure their financial status by purchasing a health insurance plan.

Insurance regulatory and development authority of India had also introduced a coronavirus specific health insurance plan to cover only the hospitalization expenses arising out of coronavirus pandemic. These expenses were covered up to a certain sum insured mentioned under the policy.

In addition to this Insurance Regulatory and Development Authority of India had also directed the insurance companies to settle the coronavirus related claims under the existing personal health insurance policies.

Personal health insurance policy can be cancelled by the insurance company if the company finds out that the material facts are hidden by the insured at the time of purchasing the policy. In addition to this the insurance company can also cancel the personal health insurance policy

If the customer has made fraudulent claims. In the same way a personal health insurance policy can be cancelled by the insured customer if he/she is not satisfied with the insurance company for any of the reasons whatsoever. If the customer is not satisfied with the personal health insurance policy then he/she has to write a personal health insurance cancellation letter to the insurance company to cancel the policy.

The personal health insurance cancellation sample letter format is mentioned below:-


Date:- DD/MM/YYYY

To,

Insurance Company Name

Address

Pincode.

Reg:- Cancellation of personal health insurance policy.

Dear Sir/Madam,

I’m writing this letter to bring to your notice that I would like to cancel my personal health insurance policy due to the below mentioned reasons. I have attached cancelled cheque leaf to process the refund of premium after the personal health insurance policy cancellation is done.

The cancellation needs to be done effective (Date DD/MM/YYYY) and the refund should be initiated on priority to my account. The details of my account are attached below for your reference. I’m looking forward to getting a response from your regarding the cancellation of my personal health insurance policy.

Reasons for cancellation:-

  • I was appraised of Super plus health insurance policy but I received a copy of silver health insurance policy which is quote different from what I have understood from your agent.
  • The premium of the policy was higher when compared to the competition.
  • The service of the company is not up to the mark and neither the insurance intermediary is responding and answering my queries.
  • The network hospitals list has been updated and my hospital has been removed from the list from which I was availing cashless claim settlement facility. Due to this issue now I’m forced to go for reimbursement claim settlement facility.
  • I’ve not received the hard copy or soft copy of my personal health insurance policy even after payment of premium on (Date DD/MM/YYYY).

So, after going through all the nuances I would like to cancel my personal health insurance policy and requesting you to refund the premium to my account.

Your customer

Name

Policy number

Address.


Recommended PostGroup Health Insurance Policy Cancellation Letter

Things to keep in mind while writing a personal health insurance policy cancellation letter:-

  • Policy details: The most important thing to include in a personal health insurance policy cancellation letter is the details of the personal health insurance policy. All the details of the policy to be cancelled should be included in the cancellation letter so that the insurance company would process the cancellation in a timely manner.

    If these details are not shared by the customer in the cancellation letter then the insurance company would ask for these details in a reply mail and this would increase the time spent in the cancellation process. Below are the policy details that are to be included in the personal health insurance cancellation letter;
  • Policy period which states the start date and the end date of the personal health insurance policy.
  • Policy number which would be used to identify the policy by the insurance company.
  • Policy period which would be utilised by the insurance company to calculate the refund of premium.
  • Cancellation reasons: The other thing that should be kept in mind while writing the personal health insurance policy cancellation letter is the cancellation reason. Cancellation reasons can be any of the following:-
  • Policy cancelled due to poor after sales service by the insurance company or its intermediary.
  • Policy conditions different from that explained by the insurance intermediary. The terms and conditions, coverage are different from promised.
  • High premium when compared to the competition.
  • Network hospitals removed from the network hospitals list forcing us to go for the reimbursement claim settlement option.
  • Alternative policy: The major important thing to keep in mind while using the personal health insurance policy cancellation letter template is to purchase an alternative personal health insurance policy.

    An alternative personal health insurance policy should be purchased first and then the cancellation letter should be written to the insurance company to process the cancellation and refund the premium.

    The new personal health insurance policy should be verified before purchasing and should satisfy the requirements of the customer failing which would result in a policy cancellation. The new personal health insurance policy should have all the benefits that were not available in the cancelled policy.

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Susheel Agarwal

Namaste. I'm Abhinay Nedunuru, a Fellow of the Insurance Institute of India with a passion to make insurance simple and crisp. I write mostly on insurance and investment. I have a passion for teaching and training in particular to insurance. I'm currently doing my PhD from IIM in Marketing Management.