Hyderabad:
In a digital push, the insurance regulator IRDAI has allowed life Insurers to obtain the customer’s consent through electronic means i.e., without requiring wet signature on the proposal form,for the business solicited by individual Insurance agents and insurance intermediaries under all products, till 31st March, 2021.
The suitability assessment, benefit illustration (wherever applicable) and the completed proposal form shall be sent to the proposer on his / her registered e-mail ID or mobile number in the form of an e-mail or a message with a link as the case may be.
The above referred message / e-mail shall specifically highlight, in the main body of the message itself, the Sum Assured, premium amount payable, policy term and the premium payment term of the proposal being solicited while seeking the proposer’s consent for the same.
The proposer, if he / she wishes to consent to the product offered, the benefit illustration and the completed proposal form, may do so by affixing digital signature or by clicking the confirmation link or by validating the OTP shared. The insurer can't insist on payment of moneys towards proposal deposit till the receipt of consent of the proposer.
It shall be the responsibility of the Insurer concerned to authorize specific individual agents for this dispensation. Life Insurers may follow appropriate due diligence in considering such authorization, said IRDAI..
The insurance agents can't solicit non-single premium unit-linked insurance policies for annualized premium exceeding Rs.50,000 or single premium unit-linked insurance policies exceeding Rs. 1,00,000.
The Insurer has to verify at least 3% of sales to ascertain compliance with these provisions. The records of verification calls have to be preserved for a period of not less than three years. The insurer has to maintain verifiable, legally valid evidence of the proposer’s consent in an unalterable and easily retrievable form for a period of six months beyond the term of the policy or until satisfactory settlement of claim, whichever is later.
For the sales made by the insurance intermediaries under new provisions, compliance with the extant provisions as per the applicable intermediaries regulation has to be ensured in all respects, including, the financial ceilings, non-face to face solicitation requirements, call verifications, etc.
All individual insurance agents and insurance intermediaries has to ensure the accuracy of the prospect’s e-mail ID / mobile number. They will use only the approved sales material during the solicitation process.
The insurers has to provide necessary portal / app based support and ensure compliance with suitability assessment and issuance of benefit illustration wherever applicable. The life insurer has to ensure accuracy of the e-mail IDs / mobile numbers of the prospects by conducting de-duplication and other such means.
8. The Insurers shall provide appropriate training to all persons involved in the sales / solicitation process to ensure that the consent of the customer is obtained only after clear information has been provided to the proposer on the product being sold. The Insurers shall also monitor the grievances received pertaining to the sales and promptly undertake corrective actions. They shall submit, as per Annexure I, a monthly statement of grievances received pertaining to the sales logged in through electronically validated e-proposals dispensing with physical signature under the provisions of this Circular.
9. The Authority may withdraw this facilitation either for a) one or more agent(s) or a life insurer or (c) across all life insurers, any time.