Insurers will have to maintain verifiable, legally valid evidence of the buyer’s consent in an unalterable and easily retrievable form for a period of six months beyond the term of the policy or until satisfactory claim settlement, whichever is later
NEW DELHI: Policy buyers can now buy term insurance policies, without leaving the comfort of their home or signing on any paper till 30 September, 2021. The facility was earlier slated to expire this month.
The Insurance Regulatory Development Authority of India (Irdai) issued a circular on 23 March, saying, "Life Insurers are allowed 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 Agents and Insurance Intermediaries, under all products, till 30th September 2021."
The suitability assessment, benefit illustration (wherever applicable) and the completed proposal form will have to be sent to the buyers either on their registered e-mail ID or phone number in the form of a message with a link.
The message/mail will have to specifically highlight the sum assured, premium amount payable, policy term and the premium payment term of the proposal being solicited while seeking the buyer's consent for the policy proposal.
Once the buyer gives consent to the product offered, the benefit illustration and the completed proposal form needs to be affixed by a digital signature. One can also validate it by the One-Time-password (OTP) process.
For dispensation of physical signatures in life insurance, an insurer has to authorise specific individual agents. In such a situation, insurance agents will not have to sell non-single premium unit-linked insurance policies (Ulips) for annualized premium exceeding Rs50,000 or single premium unit-linked insurance policies exceeding Rs1 lakh.
Furthermore, the insurer will have to verify at least 3% of sales to ascertain compliance with these provisions. Besides, the records of calls verification need to be preserved for a period of not less than 3 years.
Insurers will also have to maintain verifiable, legally valid evidence of the buyer’s consent in an unalterable and easily retrievable form for a period of six months beyond the term of the policy or until satisfactory claim settlement, whichever is later.
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