IRDAI is moving towards digitization to make buying of life insurance policy easier

CIOReviewIndia Team | Friday, 07 August 2020, 09:17 IST

Irdai’s move towards digitization makes buying life insurance policy easier

Due to the COVID-19, the need for social distancing has made the Insurance Regulatory and Development Authority of India (Irdai) to bring numerous measures on-board to enable policyholders and insurers to sell, purchase or claim insurance online.  

This week Irdai has brought a few changes on how life insurance policies can be issued and bought.  This was done in the hopes to make the purchase of the term plans easier and also solve the problem that is related to issuing the physical policies amidst this pandemic situation. 

Rushabh Gandhi, deputy CEO, IndiaFirst Life Insurance Co Ltd. said, "Term plans are simple and easy to understand. This combined with the fact that it's prudent to take one step at a time could be the reason to restrict the dispensing of physical signatures to only term products."  

The traditional process of making policies by intermediaries and agents has witnessed a complete change due to the COVID-19 outbreak - Gravely affecting physical proposal forms, wet signatures obtainment, and physical papers subsequent movement.  

Anil PM, head-legal and compliance, Bajaj Allianz Life Insurance Co. Ltd. said, “With covid-19, customers are apprehensive about meeting anyone in person. While we could capture the details for the proposal form over a phone call or a video call, getting the signature has been a challenge." 

“Insurers will need to have a mechanism in place to trigger the OTP or sharing of the link. The regulator wants us to have a mechanism in place for the customer to key in the acknowledgement and for us to store this in case any issue (or conflict) arises in the future. Generally, customers give a cheque with the completed proposal form which comes to the insurer. Now customers are not required to pay the premium until they’ve accepted or given their consent to the proposal," added Anil.

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