Irdai has now asked life insurance companies to highlight the sum assured, premium and policy as well as payment terms
Under the exemption, the proposal form has to be sent to the proposer on his or her registered e-mail ID or mobile number in the form of an e-mail or a message with a link
If you are planning to buy a life insurance policy this financial year, you won’t need to give your consent by signing on the hard copy of the proposal form and can do so electronically instead.
The Insurance Regulatory and Development Authority of India (Irdai) on Thursday extended the exemption given to life insurers to obtain customers’ consent without requiring signatures on the hard copy of the proposal forms till 31 March 2021. In the wake of the covid-19 pandemic and social distancing norms, the regulator in August 2020 had allowed companies to obtain customers’ consent through electronic means till 31 December 2020.
Irdai has also asked life insurance companies to highlight the sum assured, premium and policy and payment terms while seeking your consent.
The proposal form is sent to the customer’s registered email ID or mobile number. The customer can give consent by affixing a digital signature or by clicking the confirmation link or by validating the OTP shared. Irdai reiterated that agents can’t ask for a deposit till the receipt of consent. Some agents ask for a deposit, which is later adjusted with the first premium, but that’s not allowed.
“Technology and digitalization have enabled us to provide a virtually paperless on-boarding process to customers. Digital solutions ensure error-free processes and transactions," said Ashish Rao, chief, customer experience and operations, ICICI Prudential Life Insurance Co. Ltd.
The regulator had earlier allowed companies to issue electronic policies on email. Physical policies are not mandatory now if the insurer gets the policyholder’s consent.
Moreover, Irdai has fixed a limit on premiums for Ulips sold digitally by individual insurance agents. “Wherever wet signatures are not possible and the consent is being digitally taken, an insurance agent can take a maximum of ₹50,000 for non-single premium Ulips and ₹1 lakh for single premium Ulips," said Mahavir Chopra, founder, Beshak.org, a research platform for insurance users.