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How to Write a Group Health Insurance Cancellation Letter?


Summary

Group Health Insurance Cancellation Letter

Group health insurance cancellation letter is the letter written to the insurance company to cancel your group health insurance policy due to any of the reasons whatsoever. The group health insurance cancellation sample letter format is provided in this article for ready reference.

The same format can be used to write the group health insurance cancellation letter to the insurance company which would then cancel the group health insurance policy and refund the unused premium if any. 

Group health insurance policy compensates the members in case of hospitalization due to an illness or disease or accident for the sum insured mentioned under the policy. The sum insured under the group health insurance policy would be decided by the organization or the employer taking the policy.

Employers usually decide the group health insurance policy sum insured depending on the grade of the employees. Certain grades of employees would be given sum insured depending on their grade. For example Middle managers would be given ₹5 lakhs sum insured whereas lower level management would be given ₹3 lakhs and the higher level management would be given ₹10 lakhs which would be decided by the employer. 

In general higher the grade of the employee higher would be the group health insurance sum insured. The premium under the group health insurance policy would be paid by the employer and therefore the sum insured would be decided accordingly. The lower level management employees would be given the least sum insured as decided by the employer.

The group health insurance policy can be cancelled by the insurance company or the insured customer depending on the factors such as fraud claims, poor service from the insurance company, etc.

The group health insurance policy cancellation can be done by writing a written letter to the insurance company either through post or through the mail. 

Group health insurance cancellation sample letter has the format which can be used to write a cancellation letter to the insurance company for cancellation of the group health insurance policy. 

Recommended PostPersonal Health Insurance Policy Cancellation Letter

The sample formats to write a cancellation letter for a group health insurance policy are mentioned below:- 


Format 1:- 

Date:- DD/MM/YYYY

To

Insurance Company Name 

Address

Pincode. 

Reg:- Cancellation of group health insurance policy. 

Dear Sir/Madam, 

I would like to bring to your notice to cancel my group health insurance policy with the below details as mentioned:- 

Policy Details:– 

Insured Name: Name of the Organization or Employer 

Policy number: Group health insurance policy number 

Policy period: DD/MM/YYYY To DD/MM/YYYY

Reason for Cancellation:- I would like to inform you that I’m writing to you to cancel my group health insurance policy due to the following reasons:- 

  • Poor claim settlement services
  • Inadequate claim settlement
  • Failure to add or delete the employees even after repeated requests
  • Failure to transfer the deletion amount to my account. 

Please be informed that we (M/s. Company Name) no longer authorizes you to deduct premium towards group health insurance coverage. Any unused premium should be refunded to our bank account. I’m hereby attaching a cancelled cheque leaf which contains all the details of our bank account to which the premium refund should be made. 

I expect you to revert to this mail with acknowledgement and let me know if anything else is required from my end. You can reach me on the below mentioned numbers or revert to this mail with your requirements. 

Thank you. 

Name

Address

Policy number

Contact details. 


Things to keep in mind while writing a Group Health Insurance cancellation letter:- 

  1. Details of the policy: The first and foremost thing to mention in the group health insurance cancellation letter is the details of the group health insurance policy that is to be cancelled. If the cancellation letter is written without the details of the group health insurance policy, then the same would not be taken into account by the insurance company for cancellation, and the cancellation process would be delayed. This leads to a deduction of the premium for the extra days the policy is not canceled. The following details should be mentioned in the group health insurance cancellation letter; 
  • Group health insurance policy number which would be available in the policy copy
  • Group health insurance policy period which can be found in the policy copy 
  • Name of the insured customer. Group health insurance would generally be taken in the name of the organization which would be mentioned in the policy copy. 
  1. Cancellation date: The other important thing to mention in the group health insurance cancellation letter is the cancellation date. The cancellation date is the date from which the group health insurance policy should be canceled and the cancellation of the policy should come into force. From this cancellation day onwards no premium would be deducted for the group health insurance coverage. Also, an acknowledgment receipt or letter has to be shared by the insurance company with the insured customer in return for the group health insurance cancellation letter shared with the insurance company by the customer. 
  1. Refund account details: Once the group health insurance policy cancellation is done, then the unused premium if any would be refunded into the account of the insured customer. The refund doesn’t happen if the refund account details of the customer are not provided to the insurance company. The refund account details should include the NEFT details of the insured customer who is willing to cancel his or her group health insurance policy. 
  2. Take a new policy: Once the group health insurance policy cancellation letter is written to the insurance company then the next important thing to be done by the insured customer is to purchase a new group health insurance policy from another insurance company. This should be done to ensure that health insurance coverage is continuous for the employees of the organization.

    If there are any claims between the date of cancellation and the date of taking a new group health insurance policy they would not be settled by either of the insurance companies which would be a loss to the members of the organization. To prevent such issues it is advisable to purchase a group health insurance policy first and then sent the previous group health insurance policy for cancellation.

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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.