Understanding when and how an insurance policy can be cancelled is crucial for both policyholders and insurers. The Insurance Commission of the Philippines outlines clear grounds and procedures for cancellation, which vary by policy type. Below is a structured summary based on official guidelines as of 2026.
1General Insurance Policies (Non-Life)
An insurer can only cancel a non-life insurance policy after giving prior notice to the insured. Valid grounds for cancellation, effective only after the policy's start date, include:
- Nonpayment of premium
- Conviction of a crime arising from acts that increase the insured hazard
- Discovery of fraud or material misrepresentation
- Discovery of willful or reckless acts/omissions that increase the hazard insured against
- Physical changes in the property making it uninsurable
- Discovery of excess insurance coverage (total insurance exceeds property value)
- Regulatory determination by the Commissioner that continuation would violate the Insurance Code
Reference: Section 64, Republic Act No. 10607
2Health Insurance Policies: Free-Look Period
Health insurance contracts often include a "free-look period," allowing consumers to cancel within a specified time frame:
If cancelled during the free-look period
For contracts longer than 6 months
For contracts 30 days to 6 months
Purpose: For consumers who disagree with contract terms or discover exclusions after review.
Reference: Circular Letter No. 2018-65
3Other Insurance Products
For policies not covered above, refer to the specific contract for details on cancellation grounds and procedures. Each policy may contain unique stipulations or clauses.
Important: Always review your insurance contract and consult with your provider or the Insurance Commission for the most accurate and up-to-date information.
Sources
- • Insurance Commission FAQs
- • Republic Act No. 10607 (Insurance Code of the Philippines)
- • Circular Letter No. 2018-65
Angelo "Jojo" Villamejor
President & CEO, OneNetworx Insurance Agency
Angelo "Jojo" Villamejor brings nearly three decades of insurance expertise to OneNetworx Insurance Agency. His extensive experience spans insurance brokerage, bancassurance, non-life and life insurance, with leadership positions across all levels of the industry. A recognized marketing expert with a Doctorate in Business, Jojo's vision and integrity have positioned OneNetworx as a trusted insurance partner for thousands of Filipinos.