Life insurers may obtain e-signatures: IRDAI

A recent circular sent out by the Insurance Regulatory and Development Authority of India (IRDAI) stated that life insurers were allowed to obtain the customer’s consent through electronic means on proposal forms for business solicited by insurance agents and insurance intermediaries under all products till 31 March 2021.

“The suitability assessment, benefit illustration (wherever applicable) and the completed proposal form shall be sent to the proposer on his / her registered e-mail ID or mobile number in the form of an e-mail or a message with a link as the case may be,” said the circular.

The Sum Assured, premium amount payable, policy term and the premium payment term of the proposal being solicited will be clearly stated while seeking the proposer’s consent for the same.

The Insurer shall not insist on payment of moneys towards proposal deposit till the receipt of consent of the proposer. The circular also states that the insurer would be responsible in authorizing specific individual agents for this dispensation and carry out the appropriate due diligience. The insurance agents will not solicit non-single premium unit-linked insurance policies for annualized premium exceeding INR50,000 or single premium unit-linked insurance policies exceeding INR1,00,000. The Insurer shall verify at least three percent of sales to ascertain compliance with these provisions.  The records of verification calls shall be preserved for a period of not less than three years. The Insurer shall also maintain verifiable, legally valid evidence of the proposer’s consent for a period of six months beyond the term of the policy or until satisfactory settlement of claim, whichever is later.