In the wake of Covid-19 pandemic, the insurance regulator IRDAI has granted  exemption , to the general insurers, till March, 2021  from issuing  insurance policies in physical format.

 Insurers are also allowed to obtain the customer’s consent without requiring wet signature on the hard copy of the proposal form

Now, all motor, health insurance policies,fire insurance policies, all package insurance policies issued to individuals and all miscellaneous policies issued to individuals where the sum insured does not exceed Rs. 5 crore,can be issued through digital/electronic mode.

“ They can be  be sent to the registered e-mail id or mobile number provided by the customer only on the specific consent provided by the policyholder,'' said IRDAI on Thursday.

The policy document sent electronically is as valid as the physical policy contract / document.  Wherever the policy holder demands the physical version of the policy document / copy of the proposal, the same will  be made available, said the IRDAI.

Simultaneously, the policyholders will be informed through SMS that policy document /copy of the proposal form have been sent to their e-mail id or any other digital / electronic mode ).

Insurers has put in place proper mechanism to ensure that the documents are delivered to the designated e-mail Id / mobile number of the policyholder and an acknowledgement is appropriately obtained / auto-collected on delivery.

When documents are forwarded by electronic means, the mechanism of policyholder having received the document or the electronic platform having delivered the documents shall be maintained. It shall be clearly informed to the policyholder that the date of delivery of the document is reckoned for the purpose of considering any applicable free look requests. 

The completed proposal form shall be sent to the prospect on his/ her registered e-mail ID or mobile number by means of a message with a link, as the case may be.If the proposer wishes to give consent to the proposal, the same may be permitted by providing a link for confirmation or through One Time Password (OTP) duly validated.Insurers have to maintain verifiable, legally valid evidence for the proposer’s consent received for the fully completed proposal form.

Insurers will  be responsible for the following:

-Providing approved digital sales material to insurance agents/intermediaries and ensure that only that material is used while soliciting the business;

-Authenticating the e-mail IDs / mobile numbers of the proposers including through de-duplication of the data and such other means;

-Ensuring the suitability of the product being sold