HYDERABAD: Buying an insurance coverage will now not be an onerous affair. Now, it is possible for you to to buy any non-life insurance coverage, corresponding to well being or motor cover, just with the assistance of a one-time password (OTP) acquired in your cell quantity validated by the insurance firm.
As per the newest round issued by the insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI), insurers are additionally “allowed to obtain the customer’s consent without requiring wet signature on the hard copy of the proposal form subject to following: a) 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, as the case may be. b) If the proposer wishes to give consent to the proposal, the same may be permitted by providing a link for confirmation or through one time password (OTP) duly validated.”
These exemptions are legitimate until March 31, 2021, and have been issued by the regulator after it acquired representations from insurance firms in search of exemption from the requirement to challenge a bodily coverage doc and onerous copy of proposal type.
The regulator has said that insurers shall ship the coverage doc and a replica of the proposal type by means of digital mode to the registered e-mail id or cell quantity offered by the client following the policyholder’s particular consent.
Simultaneously, the policyholders shall be told by means of SMS that the coverage doc or copy of the proposal type have been despatched to their e-mail id or any different digital or digital mode.
The coverage doc despatched electronically shall comprise all of the schedules, phrases and circumstances, advantages and so on which are in any other case accessible within the bodily doc.
However, the regulator has said that wherever coverage paperwork couldn’t be despatched by means of digital means resulting from any causes, the businesses shall compulsorily ahead the bodily paperwork to the policyholders.
Commenting on the transfer, Gurdeep Singh Batra, head – retail underwriting, Bajaj Allianz General Insurance mentioned permitting insurers to challenge digital insurance policies is unquestionably a constructive step contemplating the present pandemic state of affairs and the challenges in issuing bodily coverage paperwork or proposal kinds. “This not only improves the turnaround time for policy issuance, but also secures the policy documents electronically with the policyholder as well as the insurer. Since all the documents are transacted online and maintained, it also improves transparency between the insurer and insured,” he mentioned.
Amit Chhabra, head-well being insurance, Policybazaar.com, identified that the newest transfer won’t solely assist the shoppers get insured in a shorter interval of time but in addition, they will not must undergo the drawn process of submitting bodily paperwork required for getting an insurance coverage issued.