By the time you realise you have been a victim of mis-selling you are looking at a closed door. You have a useless or sub-optimal product and you cannot exit without considerable loss. You may even be in hospital or have lost a loved one – and the policy you bought is useless. Is there no way out? There is and it will take your effort, time and yes financial loss.

The escape hatch

The first opportunity for you to wiggle out of a bad insurance decision is in the fortnight after you receive your policy document. That window – the free-look period – is provided to you by the regulator enabling you to return the policy and seek a refund.

Read through the policy documents, see whether it suits your requirements, see if the terms, benefits and premium payment schedules are what you were told and promised when you bought it.

If you are unhappy for any reason, you can cancel the policy and get a refund. Amazing as that sounds, not too many people use this safety net. They are not aware or they are not that vigilant and also avoid an unpleasant job.And then there is the biggie: the document is daunting and discouraging to read with its clauses and difficult language. No matter, each policy bond has to be accompanied by a customer information sheet. Please read that if you want to backtrack from the policy.

The process

How to do it? Write to the insurer about what you were told and what you got and why it is unsuitable for you. Ask for cancellation and refund. If there is misrepresentation, the insurer may offer to modify or cancel and refund most of the premium.

The customer care/grievances officer’s contact information will be on your policy and he has to respond by a certain time frame and address your issue. Escalate it within the company until you get a response. If unsuccessful use the IRDAI’s Integrated Consumer Grievances Portal, now called Bima Bharosa, and then further the Insurance Ombudsman, consumer courts and regular courts as well.

It is not what happened, but what you can establish as happened that will be your strength. Your alertness has to start at the time of buying. Please put all queries in writing and get all promises, terms and conditions and assurances in writing. Be alert about disclosures and undertakings you sign as they are binding. Make sure to fill and sign the proposal form yourself and keep a photocopy.

Prevention better than cure

The final truth is you are better off avoiding mis-selling than fixing it. This means commitment to invest time and effort during the purchase. Be clear about the purpose of buying a cover. Learn which policies suit your needs. Ask all difficult queries until you get clear answers (in writing!) Get a second opinion! Talk to experts and family before buying. In the next instalment of CoverNote, we will give a wish list of consumer, seller and regulator behaviour to avoid the mess.

(The writer is a business journalist specialising in insurance & corporate history.)

Published on May 4, 2026