The insurance industry is riding the digital wave with the regulator allowing the life insurance companies to obtain the customer’s consent through electronic means, i.e., without requiring a wet signature on the proposal form. Insurance Regulatory and Development Authority of India (IRDAI) had earlier allowed insures to dispense with physical signatures on proposal forms in the case of pure risk products only till 31st December 2020, but now business solicited by individual Insurance Agents and Insurance Intermediaries under all products till 31st March 2021 can be done without requiring wet signatures on the proposal form.
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.
The communication with the buyer needs to clearly highlight the Sum Assured, the premium amount payable, policy term and the premium payment term of the proposal being solicited while seeking the proposer’s consent for the same.
The proposer, if he/she wishes to consent to the product offered, the benefit illustration and the completed proposal form, may do so by affixing digital signature or by clicking the confirmation link or by validating the OTP shared. The Insurer shall not insist on payment of money towards proposal deposit till the receipt of the consent of the proposer.
Insurers shall ensure that only such approved material is used while soliciting the business. A copy of such standardized presentation shall also be mailed by the Life Insurer to the policyholder along with the policy document. The free look cancellation period of 30 days will be applicable for sales effected under these provisions.
It shall be the responsibility of the Insurer concerned to authorize specific individual agents for this dispensation. Life Insurers may follow appropriate due diligence in considering such authorization.
The Insurance Agents shall not solicit non-single premium unit-linked insurance policies for annualized premium exceeding Rs.50,000 or single premium unit-linked insurance policies exceeding Rs. 1,00,000.
While buying term plans online is already possible from the website of life insurers, one can also buy life coverage from insurance agents and intermediaries such as banks, corporate agents etc. But, if moving out and having physical interaction with agents is proving difficult in these times of pandemic, the insurance regulator IRDAI has come up with a solution. Now, one can buy a term insurance plan from his friendly neighbourhood insurance agent sitting at home. The filling up of the application form, submission of documents and even the signing of the forms is now possible through OTP received on your mobile.
Filling up of the proposal form is only a part of the life insurance buying process. Make sure you understand the policy features, the working of the plan, the death and maturity benefits before buying. While the digital mode of buying and paying premium makes it simpler and easier, an informed buying will go a long way in meeting your long term goals. Call the insurer or speak to the insurance agent to dispel the doubts before dispensing with the wet-signature and opting for OTP based purchase of life insurance policy.