A policy termination letter is written by an insurance company to a client. The letter informs the client that an insurance policy that they are subscribed to has been terminated for various reasons which may be elucidated.
The reasons may be among others, lack of information, pre-existing medical conditions, suppression of information, inability to pay the premium, etc. A policy termination letter must be very technical since the letter may lead to legal consequences in the future if the insurance company makes mistakes.
A policy termination letter may usually be drafted by a lawyer of the insurance company. However, it must include some essential information such as the purpose of termination, policy number, policy type, policy duration, premium rate, etc.
The letter must also mention compensation or other remuneration that may be provided to the customer from the insurance company, including refunds.
The letter should be formal in tone and must provide only the essential information. The letter may also suggest a future course of action that may be taken by the customer.
Table of Contents
Tips for Writing a Policy Termination Letter
- The letter should be formal and detailed.
- The letter should mention details as to the reasons for policy termination.
- The letter should be drafted by a legally qualified person, in light of potential lawsuits.
- The letter should not divulge more information than necessary.
Insurance Termination Letter Template
Use our free Policy Termination Letter to help you get started. If you need additional help or more examples check out some of the sample letters below.
From,
__________
__________
__________
__________
Date: _____ (Date on Which Letter is Written)
To,
__________
__________
__________
__________
Subject: Cancellation of your policy number
Dear Sir/Madam_________,
This is about the insurance policy that you had purchased on _________(date). You are aware that our policy is accompanied by a medical check and upon successful medical checks the policy is approved. As per your application, you mentioned that you are perfectly healthy, but when our team conducted a random check we learnt that you have been suffering from _______ over the past year, and you had not informed us about it.
As per the clause, we regret to inform you that your policy stands cancelled with effect from_____________(date).
We regret the inconvenience caused to you, and since the policy is canceled at the beginning of the term, the money due is only what you had paid at the time of the policy. We will be deducting the miscellaneous charges incurred by the company and the remaining amount____________will be sent to you within 15 days to your address. The settlement amount will be in the form of a cheque sent to your address. Please feel free to contact me if you require more information regarding this subject.
Best regards,
________
(name and designation)
From,
______________
______________
______________
Date: ____________ (date of the writing of the letter)
To,
______________
______________
______________
Subject: insurance termination
Dear ____________ (name of the person to whom the letter is being addressed to),
Being the ___________ (post) of the company, I’d like to herby inform you that the policy you applied for has been terminated by our agency. According to the terms and conditions of our policies, _____________________________ (terms of the policy). But unfortunately you have failed to pass all of those conditions due to _____________________ (reason for the termination).
Hence, you’ll receive the amount that you paid for the policy, within ___________ (date of the termination). We’ll exclude some of the service charges.
Thanking you,
Yours faithfully,
Name and signature
Insurance Termination Letter Sample
The following is a Sample of a Policy Termination Letter.
From,
Johnson-Thompson Drum
Head of Customer Relationships,
LLB Insurance Holdings,
Utopia.
Date: 22 March 1776.
To,
Mellissa Austin in.
West Street,
Utopia.
Dear Madam,
Subject: Cancellation of Insurance Policy due to False Information.
This is about the insurance policy that you had purchased on 22 January 1776. You are aware that our policy is accompanied by a medical check and upon successful medical checks the policy is approved.
As per your application, you mentioned that you are perfectly healthy, but when our team conducted a random check, we learned that you have been suffering from Kidney disease over the past year, and you had not informed us about it. As per the clause, we regret to inform you that your policy stands canceled with effect from 23 March 1776.
We regret the inconvenience caused to you, and since the policy is canceled at the beginning of the term, the money due is only what you had paid at the time of the policy. We will be deducting the miscellaneous charges incurred by the company and the remaining amount of Rs. 12000 will be sent to you within 15 days to your bank account.
The settlement amount will be in the form of a cheque sent to your address. Please feel free to contact me if you require more information regarding this subject.
Best regards,
Johnson-Thompson Drum
Head of Customer Relationships,
LLB Insurance Holdings.
From,
Joel,
45 Chembur Garden,
Chembur
Date: DD/MM/YYYY
To,
Jitendra Jain,
New India Insurance,
Worli
Subject: termination of insurance
Dear ABC,
By this letter, we’d like to inform you that the XYZ policy you applied for has been terminated due to the little wrong information provided by you to us.
As per the terms, your policy requires you to be physically fit along with medical proof of your health. But on the day of the medical checkup at our office, our team got it that you are a patient of MNO disease, which is not approvable according to the policy terms.
The termination will take its effect from the QPR date within that we’ll send you the amount we took from you excluding some of the service charges. We greatly regret such an action, but we have to follow our terms.
We hope you’ll surely get some other agency for completing your policy planning.
Thanking you,
Yours sincerely,
Name and signature
Insurance Termination Letter Email Format
The following is the Email Format to be followed for a Policy Termination Letter.
Dear Mr./Ms/Mrs.______(Name of the recipient)
This is about the insurance policy that you had purchased on _________(date). You are aware that our policy is accompanied by a medical check and upon successful medical checks the policy is approved. As per your application, you mentioned that you are perfectly healthy, but when our team conducted a random check, we learned that you have been suffering from _______ over the past year, and you had not informed us about it. As per the clause, we regret to inform you that your policy stands cancelled with effect from_____________(date).
We regret the inconvenience caused to you, and since the policy is canceled at the beginning of the term, the money due is only what you had paid at the time of the policy. We will be deducting the miscellaneous charges incurred by the company and the remaining amount____________will be sent to you within 15 days to your address.
The settlement amount will be in the form of a cheque sent to your address. Please feel free to contact me if you require more information regarding this subject.
Best regards,
________
(name and designation)
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