Life insurance: Physical signatures not required to buy a new policy

IRDAI , the Insurance Regulator has allowed life insurers to receive the shopper’s consent with out requiring moist signature on the exhausting copy of the proposal kind. They can ship the finished proposal kind to the shopper’s registered e-mail ID or cell quantity within the type of an e-mail or a message with a hyperlink. Once the digital kind is obtained, the shopper can provide his or her consent by clicking the affirmation hyperlink or by validating the OTP shared.

Earlier this week on Tuesday, IRDA allowed life insurance coverage corporations to subject digital or e-policies to the shoppers on their e-mail IDs throughout FY2020-21 . This was completed to handle difficulties confronted by life insurers in printing and dispatch of policy paperwork.
IRDAI introduced these new measures in response to suggestions from a number of life insurance coverage corporations going through troubles due to the outbreak of Covid19.
“The Authority is in receipt of feedback from various life insurers that the situation arising in the wake of COVID-19 outbreak has impacted the traditional manner of canvassing life insurance policies by agents and intermediaries. In particular, the filling-in of the physical proposal forms, obtaining wet signatures on them and subsequent movement of such physical papers, are severely affected. In this backdrop, the life insurers have represented to the Authority to allow the option of authenticating the proposals for life insurance through electronic means, in place of physical signature, for the sales made by insurance agents and intermediaries, in addition to the methods presently allowed,” stated IRDAI.
IRDAI has requested the insurer to preserve verifiable, legally legitimate proof for the proposer’s consent obtained for the absolutely accomplished proposal kind. Further, the insurer can’t settle for any cost in the direction of proposal deposit until the receipt of consent of the proposer.
According to IRDAI, it will likely be the obligation of life insurer to present permitted digital gross sales materials to the insurance coverage brokers / intermediaries. The life insurer also needs to make it possible for the brokers use solely that materials whereas soliciting the enterprise.
Also, the insurer ought to authenticate the e-mail IDs and cell numbers of the shoppers by conducting de-duplication of such information.
The insurer will probably be answerable for guaranteeing the suitability of the plan bought for the shopper. Insurer may also be accountable to perform pre-issuance verification calls in respect of all such proposals.
IRDAI has put out this e-verification and e-purchase of life insurance coverage policy on an experimental foundation with instant impact until the top of this calendar yr. The digital facility is proscribed to pure threat merchandise, i.e., merchandise that do not contain any financial savings factor.
“Grievances pertaining to sales logged in through the above method shall be separately maintained by the life insurers and a monthly statement shall be submitted to the Authority in predefined format. Further, the Authority reserves the right to revoke the above facilitation in respect of any individual Insurer or for all Insurers any time,” stated IRDAI.

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