OPEN APP
Home >Money >Personal Finance >Irdai extends dispensation for physical signatures in life covers till 30 Sept

Irdai extends dispensation for physical signatures in life covers till 30 Sept

For dispensation of physical signatures in life insurance, an insurer has to authorise specific individual agents.Premium
For dispensation of physical signatures in life insurance, an insurer has to authorise specific individual agents.

  • 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."

Also Read | Six wrong calls on post-covid economy

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.

(Do you have a personal finance query? Send in your queries at mintmoney@livemint.com and get them answered by industry experts.)

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout