In the wake of emerging situation of Covid19 Global Pandemic,the insurance regulator IRDAI has allowed life insurers to issue new life insurance policies in electronic mode in FY 2020-21.

Though,the existing regulations require the life insurers to issue policies and proposal  in physical format, the IRDAI has allowed the electronic format as the life insurers had expressed difficulties in printing and dispatch of policy documents and  the desirability of adopting digital means of doing business in the interests of policyholders and other stakeholders. said the IRDA on Tuesday.

 The life insurers have to confirm the date of receipt of electronic policy document by the policyholder through PIVC or other means and preserving the proof so that free look period may be calculated from that date and 30 days free look period should be allowed for all such electronic policy documents.

“ Return of electronic policy document by mail by policyholder with clear intention of cancellation of policy will be valid for free look cancellation,'' said the IRDAI.

The policyholder should also give their express consent to the life insurers for  receiving electronic policy bond and in case a policyholder insists on hard copy, the same has to be issued without any charges.

The policy document has to  be sent to the email id submitted by the proposer.The permission to issue electronic policies is valid only for Fy 2020-21.

“The decision to issue electronic policies without having to also send the physical policy document is a welcome move, considering the current situation which poses quite a challenge for physical policy despatch. This is in fact an opportune time to make the policy issuance process digital. It will enable the industry to facilitate timely issuance of insurance policies to the customers and will help customers start their life cover on time,”said  Anil PM, head – legal and compliance,Bajaj Allianz Life.