Cancel Health Insurance Anytime?

Amidst the growing costs of healthcare and medical treatment and the global pandemic, a health insurance plan has become necessary if you want to be capable of obtaining required medical services without straining your finances. One can say that it is not a choice but almost a compulsion. 

In the UAE, this is precisely true as residents are mandatorily required to have a health insurance plan. With plenty of options available, you can get a health insurance plan from your employer or opt for private insurance as per your requirements. These plans can relieve you of stress regarding funds if faced with any medical emergency.

However, it may happen that you are unsatisfied with the services at a later stage. In such cases, you can always cancel a health insurance plan. However, the criteria for cancelling a health insurance plan depends on the issuer, the type of plan (whether group health insurance or a personal health insurance plan), and so on. 

It’s worth noting that most insurers offer a lookup period in which you can cancel your health policy with a full refund. To know more about that period and the major aspects related to health insurance cancellation policies in the UAE, read the article below. 

Health Insurance Cancellation in the UAE

There be several underlying reasons for you to cancel health insurance. However, the terms and conditions for cancelling your health insurance plan vary with the insurer and the type of plan you own. Generally, the cancellation process for a private health insurance plan is easier compared to group medical cover or the one issued by your employer. For instance, in group medical cover, as the policy owner is the company, you can only cancel your plan with the owner’s consent or when leaving the company. 

In personal or family health insurance, on the other hand, you get several options for reviewing or cancelling your policy. When you purchase a health plan, your insurer provides you with a free lookup period to review your plan. In case you are unsatisfied with your policy, you can contact your insurer and request a cancellation to get a full refund. 

You can also choose to cancel your health plan after the lookup period, although the insurance company will deduct a fraction of your insurance premium based on its plan cancellation terms and conditions. This is the reason why it is recommended to go through the fine lines and read all the terms and conditions before purchasing a health insurance plan to avoid or minimise any cancellation fees at later stages. 

Health Insurance Cancellation During Free Lookup Period

Most insurers in the UAE provide a free lookup period of 30 days. You can again review the policy terms and conditions within this period. In case you are not satisfied with the protection, coverage, services, or any other reason, you can cancel your health insurance plan and get a full refund of your premium. For online health insurance plan purchases, you may get a free lookup period ranging between 15 to 30 days. 

Within the free lookup period, if you cancel your health insurance plan, you get 100% of your premium. However, the insurer may still deduct the duty and stamp charges including the number of days the policyholder was covered under the plan. Thus, it is always advisable to go through the insurance terms and conditions thoroughly before purchasing a plan or within the lookup period to avoid any major losses later. 

Health Insurance Cancellation After the Free Lookup Period

As a personal health insurance dubai policyholder, you can always cancel your health plan anytime during the validity of the insurance plan. The health insurance plans in the UAE are generally valid for up to 12 months along with a grace period of one extra month to renew your insurance plan. 

However, if the free lookup period is over, your insurer will deduct a fraction of the premium for the months you were covered. Moreover, it’s a little more complicated to cancel your health insurance plan if you have already availed of any claim settlement during the policy term. 

So if you wish to cancel your health insurance plan after the free lookup period, you will need to provide prior written notice of 30 days. It should be remembered that even if you provide proper notice, the insurance company may choose not to refund your premiums at its discretion. Being aware of the applicable conditions by scrupulously reading the documents is the only way to avoid such a scenario of no refund of premium.

Following are some common terms and conditions for health insurance cancellation after the free lookup period. 

Common Terms and Conditions for Cancelling Personal Health Insurance in the UAE 

As the cancellation terms and conditions may differ as per the insurance provider, you should stay updated with their rules of cancellation and refund policy. However, some of the common terms and conditions for cancelling your health insurance plan in the UAE are described below. 

• You can cancel your health insurance plan anytime in the UAE. However, you will be required to provide a 30-day prior notice in writing to request to cancel your health plan. 
• In case any claims have been made (whether major or minor) during the year, the premiums won’t be refunded by the insurer. 
• If the company decides to refund your premiums (in case the claim has been made), the refund will be done at the sole discretion of the provider and the refunds will be made on a pro-rata basis. 
• Upon cancellation, the insurer charges an administration fee of at least 20% (depending on the insurance provider). 
• After cancellation of the health insurance plan, you won’t be covered under any health insurance benefits and the company will not settle any of your claims. 
• The pro-rata refunds of any type will be made after the 90 days 
• Health insurance policy cancellation has to be backed up by a valid reason
• The insurance company will not entertain any health insurance cancellation request if the premiums have not been paid. 
• Keep all the receipts of the required documents and the original membership card ready, as the company will not accept any cancellation requests without them. 
• If you are a resident of Dubai, the prevailing mandate of the Dubai Health Authority will be applicable. 

Health Insurance Cancellation Request

After realising that your purchased plan is not satisfactory for your requirements, you can reach out to your insurance provider and request for health insurance cancellation. Most health insurance companies provide a cancellation request form that you need to fill out during the free lookup period or the cooling-off period. 

While filling up the cancellation form, you will be asked to properly enter important details like the policy number, date of receipt of the policy, the reason for cancellation, etc. Once you have filled out the cancellation form, you can submit it to the insurance representative. 

Health Insurance Cancellation Process

Upon receiving your cancellation request, the health insurance company will contact you to verify the reason for the cancellation (and also to discuss probable solutions). If you still wish to cancel your health insurance plan, you can proceed with further cancellation process and the insurer will process your request and continue with the refund procedure (if applicable). 

Steps to Cancel Health Insurance Plan in the UAE

As you are now aware of the health insurance cancellation process, let’s go through the step-by-step process for cancelling your health insurance plan in the UAE.

• Contact the support department of your health insurance provider and submit an application for policy cancellation. 
• You may also be required to send a written request to cancel your health insurance (online or offline) that mentions the reason for cancellation. 
• After getting your health insurance cancellation request, the insurance company will contact you and discuss the solutions regarding the same. 
• If you still decide to continue with the cancellation process, the insurer will proceed with further cancellation and refund process. 
• Based on the tenure of insurance, the insurance company will deduct the premiums and send you the remaining amount. 
• You will receive a cancellation letter via your registered mail after the process concludes. 

What Refund Do You Get After Cancelling the Health Insurance Plan?

The refunds you receive are based on the cancellation terms and conditions of the insurance provider. In general, you get the refund amount after deducting the necessary charges and amount as mentioned below. 

• Administrative Charges - These charges include the stamping and various other service fees incurred while processing your insurance purchase and cancellation. 
• Expenses Incurred by the Insurer - In case you have availed of any benefits like medical examination, consultations, and so on through the health insurance, the amount for the same will be deducted from your refund amount. 
• Already Covered Duration - The insurer may also deduct the amount on a pro-rata basis for the duration you have already been covered under the health plan. 

Key Takeaways

• It is mandatory to have a health insurance plan in Dubai and the UAE. 
• While purchasing a health insurance plan in the UAE, thoroughly read the policy terms and conditions. 
• You can cancel your health insurance plan anytime. However, to get a full refund, you should cancel the policy during the cooling-off period. 
• In case you cancel your health insurance plan after the cooling-off period/free lookup period, the premium refunds will be made on a pro-rata basis. 
• The refunds (if applicable) will be made after reducing the administration charges, expenses incurred by the insurer, charges for the duration of policy coverage, etc.
• Once your health plan is cancelled, you cannot avail yourself of the health insurance benefits of the cancelled plan. 

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