Document Detail

Title: Circular
Reference No.: IRDA/NL/CIR/MISC/237/09/2020
Date: 10/09/2020
(a) Issuance of Electronic Policies and (b) dispensing with physical docume, Sep 2020

AllGeneral Insurers
Re:(a) Issuance of Electronic Policies and (b) dispensing with physical documentsand wet signature on the proposal form

  1. This has reference to Regulation 4 of IRDAI (Issuance of e-Insurance policies)Regulations,2016 and Regulation 18read with Regulation 8 (1) of IRDAI(Protection of Policyholders’ Interests) Regulations, 2017.
  2. In the wake of Covid-19 pandemic,based on representations received from insurers, the Authority, in exercise ofpowers vested under proviso to Regulation 4(iii) of IRDAI (Issuance ofe-Insurance policies) Regulations,2016 hereby grants exemption to insurers fromthe requirement of (a) issuing policy document and (b) copy of the proposal inphysical form in respect of the following, subject to insurers complying withcertain requirements as stated in Para 3 of this circular.
    • All Motor Insurance policies
    • Fire Insurance policies covering Dwellings and/or contents thereofissued to individuals
    • All package insurance policies issued to individuals (e.g. packagepolicies for Dwellings)
    • All Miscellaneous policies issued to individuals where the SumInsured does not exceed Rs. 5 Crore.
  3. Issue ofelectronic policies: The above exemption for issue ofelectronic policies is granted subject to the following:
    • Insurers shall send the policy document and a copy of the proposalform through digital/electronic mode. The documents shall be sent to theregistered e-mail id or mobile number provided by the customer only on thespecific consent provided by the policyholder.
    • Simultaneously the policyholders shall be informed through SMSthat policy document /copy of the proposal form have been sent to their e-mailid or any other digital / electronic mode (as may be the case).
    • Insurers shall put in place proper mechanism to ensure that thedocuments are delivered to the designated e-mail Id / mobile number of thepolicyholder and an acknowledgement is appropriately obtained / auto-collectedon delivery.
    • When documents are forwarded by electronic means, the record ofpolicyholder having received the document or the electronic platform havingdelivered the documents shall be maintained systematically. It shall be clearlyinformed to the policyholder that the date of delivery of the document isreckoned for the purpose of examining free-look requests, wherever applicable.
    • Insurers shall preserve the records of such acknowledgements forfurther reference.
    • The policy document sent electronically shall contain all theschedules, terms and conditions, benefits etc that are otherwise available inthe physical document.
    • Policyholders shall be also informed that printing of physical policydocument and dispatch of the same along with the copy of proposal form may bedelayed due to operational difficulties in the wake of ongoing COVID-19 pandemicsituation.
    • Policyholders shall be informed that the policy document sentelectronically is as valid as the physical policy contract / document.
    • Wherever policyholders demand the physical version of the policydocument /copy of the proposal, the same shall be made available.
    • Wherever it is not possible to send the policy documents throughelectronic means due to any reason, insurers shall necessarily forward thephysical documents to the policyholders.
  4. Dispensingof Wet Signature on Proposal Form: Withregard to the requirement under Regulation 8 (1) of IRDAI (Protection ofPolicyholders’ Interests) Regulations, 2017 in respect of proposal forms, Insurersare hereby allowed to obtain the customer’s consent without requiring wetsignature on the hard copy of the proposal form subject to following:
    • The completed proposal form shall be sent to the prospect on his/her registered e-mail ID or mobile number by means of a message with a link, asthe case may be.
    • If the proposer wishes to give consent to the proposal, the samemay be permitted by providing a link for confirmation or through One TimePassword (OTP) duly validated.
    • Insurers shall maintain verifiable, legally valid evidence for theproposer’s consent received for the fully completed proposal form.
    • Insurers shall be responsible for the following:
      • Providing approved digital sales material to insuranceagents/intermediaries and ensure that only that material is used whilesoliciting the business;
      • Authenticating the e-mail IDs / mobile numbers of the proposersincluding through de-duplication of the data and such other means;
      • Ensuring the suitability of the product beingsold
  5. The exemptions granted herein shall be valid till 31.03.2021.


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