A day after it permitted life insurers to problem coverage paperwork in digital format, insurance coverage regulator IRDAI on Wednesday allowed them to dispense with the requirement of getting customers’ physical signature on proposal types.
Life insurers are allowed to acquire the consent with out customers bodily signing on the proposal kind, for the enterprise solicited by insurance coverage brokers/intermediaries, topic to sure different circumstances being complied with, the regulator mentioned.
Detailing the choice course of for acquiring consent, IRDAI mentioned the finished proposal kind needs to be despatched to the registered e-mail ID or cell quantity of the possible buyer, within the kind of an e-mail or a message with a hyperlink. The buyer, if agreeing to the proposal, might present consent by clicking on the affirmation hyperlink or by validating the OTP shared.
The insurers must “maintain verifiable, legally valid evidence for the proposer’s consent received for the fully completed proposal form. They shall not accept any payment towards proposal deposit till receipt of consent.”
The regulator mentioned the life insurance coverage corporations shall be liable for authenticating the e-mail IDs / cell numbers by conducting de-duplication of such information. They additionally must conduct pre-issuance verification calls in respect of all such proposals.
On their half, the agent/middleman wants to substantiate that solely authorized gross sales materials has been used through the solicitation course of. They additionally must certify the authenticity of the e-mail ID and/or cell quantity of the prospect.
The choice to dispense with physical signature on proposal types is being allowed on an experimental foundation with fast impact till December 31, 2020, and is proscribed to pure threat merchandise or merchandise that don’t contain any financial savings aspect, V. Jayanth Kumar, Chief General Manager (Life Insurance) of IRDAI mentioned in a round.
The newest transfer follows representations from the insurers to IRDAI to permit the choice of authenticating proposals for life cowl by means of digital means. In assist, they’d referred to the state of affairs arising from COVID-19 outbreak and the impression on standard kind of canvassing life insurance coverage insurance policies by brokers and intermediaries. In explicit, filling-in of physical proposal types, acquiring moist signatures on them and subsequent motion of such physical papers are severely affected, they’d mentioned.