Qian - Insurance Blog

How to Cancel a Group Health Insurance Policy and What is the Premium Refund Process?

Oct 27, 2023

Qian

Leave a comment

Group Health Insurance Policy

How to Cancel a Group Health Insurance Policy and What is the Premium Refund Process?
Contents

There can be multiple reasons to cancel a Group Health Insurance Policy. Sometimes employers are not satisfied with the features that were promised while other times, the company has been acquired because of which the Group Mediclaim Insurance Policy is no longer required.

This article details the different ways in which a Group Health Insurance Policy can be cancelled.

3 Ways to Cancel a Group Health Insurance Policy

Cancellation by Policyholder/Employer

Sometimes, an Employer might want to cancel his Group Health Insurance Policy because he is not satisfied with his Policy Features. In that case, the Insured can cancel the GMC Policy by giving a written notice of 15 Days or 30 Days. The Group Health Insurance Company will refund the premium on short term rates for the unexpired Policy Period as per the rates detailed below:

<td style="text-align: center;" width="197">
  <p>
    <span style="color: #000000;"><strong>% Refund</strong></span>
  </p>
</td>
<td style="text-align: center;" width="197">
  <p>
    <span style="color: #000000;">Up to 90%</span>
  </p>
</td>
<td style="text-align: center;" width="197">
  <p>
    <span style="color: #000000;">Up to 75%</span>
  </p>
</td>
<td style="text-align: center;" width="197">
  <p>
    <span style="color: #000000;">Up to 65%</span>
  </p>
</td>
<td style="text-align: center;" width="197">
  <p>
    <span style="color: #000000;">Up to 50%</span>
  </p>
</td>
<td style="text-align: center;" width="197">
  <p>
    <span style="color: #000000;">Up to 40%</span>
  </p>
</td>
<td style="text-align: center;" width="197">
  <p>
    <span style="color: #000000;">Up to 25%</span>
  </p>
</td>
<td style="text-align: center;" width="197">
  <p>
    <span style="color: #000000;">Up to 15%</span>
  </p>
</td>
<td style="text-align: center;" width="197">
  <p>
    <span style="color: #000000;">Up to 0%</span>
  </p>
</td>

Short Period Rates for Group Health Insurance Policy Cancellation

Covered Upto Days

7

30

60

90

120

180

240

Exceeding 240

An important point to note is that the Group Health Insurance Premium won’t be refunded for Policy Cancellation if any Claim has been lodged or admitted or paid to the Insured Employee.

Additionally, the Insurance Company will also not accept any claims after the written notice for Policy Cancellation is submitted by the Insured. As a result, the employee stands to lose out on Health Insurance Coverage after the cancellation request. Hence, it is very important that the Employer arranges a replacement Policy for employees to ensure steady health insurance coverage before sending a request for Policy Cancellation.

Automatic Cancellation

A Group Health Insurance Policy will be automatically cancelled in case of the death of the Policyholder. The Premium will be refunded as per the short period rates in case the Policyholder has not taken any claims against the GMC Policy.

Cancellation by the Group Health Insurance Company

The Group Health Insurance Company also has a right to cancel the GMC Policy by giving a 15 Days – 30 Days written notice to the Insured. However, the Insurance Company can only cancel the Policy on grounds of misrepresentation, non-disclosure of material facts or fraud.

If the Insurance Company cancels the GMC Policy on grounds of misrepresentation, non-disclosure of material facts or fraud, then there will be no refund of premium by the company.

Conclusion

This article detailed how to cancel a Group Health Insurance Policy and the refund policy in case of Policy Cancellation.

Qian is an experienced Group Health Insurance Broker and if you wish to purchase a Group Health Insurance Policy for employees, you can reach out to us at 📧 support@qian.co.in or call us on 📞 022-35134695.

We would be glad to assist you.

List of All Posts In this Insurance Blog

Sitemap

Liability Insurances

Commercial General Liability Insurance Product Liability Insurance Trade Credit Insurance Policy Public Liability Public Liability Insurance (Act) Policy Directors and Officers Liability Cyber Liability Insurance Policy

Commercial Insurances

Standard Fire and Special Perils Insurance Fire Loss of Profit Insurance Keyman Insurance Policy Factory and Warehouse Insurance Policy Contractor's All Risk Insurance Erection All Risk Insurance Industrial All Risk Insurance Policy Machinery Breakdown Insurance Policy Surety Bonds Insurance

Professional Insurances

Architects' Professional Indemnity Doctors' Professional Indemnity Insurance Media Liability Insurance Jeweller's Block Insurance

Marine Insurance

Marine Cargo Insurance Inland Transit Insurance Shipping Container Insurance

Get a Free Quote

GET A FREE QUOTE