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Insurance Policy Cancellation Letter (Sample Letter)

Sometimes we may end up choosing an insurance policy that may not cover all our requirements. In that event, we may want to cancel that policy and upgrade to a better one. Let us talk about this process in detail.

In this article, we will tell you about an insurance cancellation letter and how you can write one simply and easily. Further, we will also show you a sample insurance cancellation letter for your reference.

Things You Should Know

1.) Free Look Period

While issuing insurance policies, insurance companies generally provide a free look period. If the policyholder is not satisfied with the policy he may choose to terminate his policy within the free look period. This free look period is usually anywhere between 15-30 days.

If you choose to cancel your policy within this free look period you will receive up to 100% of your premium. However, you shall have to pay any cost that the insurance company may have spent on any stamp duty or medical tests.

2.) Policy Cancellation After Your Free Look Period

  • You can also cancel your insurance policy after the free look period, but you will not receive your entire premium.
  • If you cancel your insurance policy within a month of the free look period you will be entitled to receive up to 75% of your premium paid.
  • If you cancel your insurance policy within 3 months after the completion of the free look period, you will be entitled to receive 50% of your premium.
  • If you cancel your insurance policy within 6 months of the free look period, you shall be entitled to 25% of your premium paid.
  • If you cancel your policy after 6 months of the free look period, you will not receive any refund of your premium paid.

Cancellation Process

Step 1: Fill the cancellation form

Insurance companies will provide you a standard health insurance cancellation form. Kindly make sure to fill the form correctly with valid information, mentioning policy details such as date of the policy, policy number, name of the policyholder, etc. You will also have to mention the reason for termination.

Step 2: Insurance company receives your request

Once the insurance company has received your cancellation request, they will get in touch with you shortly. The insurance company will inquire about the reason for the cancellation and try to provide you a resolution. However, if you have made up your mind about canceling the policy, the cancellation process will be initiated by the company and you will get your refund.

Insurance Policy Cancellation Letter

Steps to writing a cancellation letter

  • Step 1: Call your insurance company and get the correct contact details and email address of the cancellation department.
  • Step 2: Write a letter as following (example)


Sample Letter



Ram Kapur,
B04 Ganpat Apartments,
Shivaji Park,
Date 12-03-21

The Claim Settlement Department,
HDFC ERGO General Insurance Company,

[Their full address]

Sub: Cancellation of insurance policy (Policy No xxxxxxxxxx)

Respected Sir/ Madam,

I, Ram Kapur, am writing you this letter to formally submit my request for the cancellation of my health insurance policy (Policy no xxxxxxx) with HDFC ERGO. The effective date for canceling the policy is 13-03-21. Please stop debiting any charges for the same. Further, kindly return any unused premium to the following bank account (mention your bank details).

Request you to send me the written confirmation of cancellation of the policy ASAP. Please do not hesitate to contact me regarding this matter. I look forward to your prompt attention on the same.

Yours sincerely,

Ram Kapur
Contact No (——-)

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