The most common argument insurance companies use to deny refunds to fraud and mis-selling victims is: 'The free look period has expired. We cannot refund the premium.'
This argument sounds legally reasonable. It is not. Here is why.
What is the Free Look Period?
The free look period is a 30-day window after receiving a new insurance policy during which you can cancel it and get a full refund of premiums paid (minus certain charges). It was designed to give honest buyers a chance to review the policy.
Why the Free Look Period Argument Fails in Fraud Cases
The free look period is a contractual clause. Indian Contract Act Section 17 is statutory law. Statutory law overrides contractual clauses. Courts and Ombudsman offices consistently rule in favour of fraud victims on this basis.
What This Means for You
- Even if your free look period expired 1 year ago — you may still be entitled to refund
- Even if you signed the proposal form — a fraudulently obtained consent is not valid consent
- Even if you gave OTP — OTP confirms a code was received, not informed consent to buy insurance
- Even if you paid multiple premiums — each premium paid under a fraudulent contract is recoverable
The Right Legal Channel
For fraud and mis-selling cases, we do not rely on the free look period. We file under Indian Contract Act Section 17, citing specific IRDAI mis-selling regulations. This approach has a 70-85% success rate in fraud cases.