Issuance of Electronic Policies


Quick Summary
The Insurance Regulatory and Development Authority of India (IRDAI) has extended the exemption for life insurers to issue policy documents electronically. This decision, made in light of the ongoing COVID-19 pandemic and feedback from insurers regarding difficulties with physical document handling, allows for digital issuance of policies for an additional six months. The exemption applies to policies issued up to 30th September 2021 and requires insurers to confirm policy receipt, offer a 30-day free look period, and obtain explicit policyholder consent for electronic documents.

Insurance Regulatory and Development Authority of India

Ref. No: IRDAI/Life/Cir/Misc/056/03/2021

Date: 23-03-2021

To All Life Insurers

Re: Issuance of Electronic Policies

This has reference to the provisions of Regulation 4 of IRDAI (Issuance of e-Insurance policies) Regulations,2016 and the exemption granted vide circular Ref: IRDAI/Life/Cir/Misc/207/08/2020 dated 4th August 2020. In the wake of continuing situation of Covid19 Global Pandemic with all public health measures in place such as hand hygiene and social distancing, and taking into account (i) and (ii) below,

i) the feedback received from the Life Insurers expressing difficulties in printing, handling and dispatch of policy documents

ii) the desirability of adopting total digital means of doing business in the interests of policyholders and other stakeholders exemption is allowed for six months more by Competent Authority under Proviso to Regulation 4(iii) of the Referred Regulations, from the requirement to issue policy document, copy of proposal form in physical form. The exemption is subject to

a) Life Insurer confirming the date of receipt of electronic policy document by the policyholder through PIVC or other means and preserving the proof so that Free Look period may be calculated from that date.

b) Thirty (30) days Free Look period may be allowed for all such electronic policy documents.

c) Return of electronic policy document by mail by policyholder with clear intention of cancellation of policy shall be valid for Free Look Cancellation.

d) Express consent of the policyholder to receive electronic policy bond is required. If a policyholder insists on hard copy, the same has to be issued without any charges.

e) Policy document shall be sent to the email id submitted by the proposer.

The exemption shall be valid for all policies issued up to 30th September 2021.

(V. Jayanth Kumar)
Chief General Manager

FAQ :

The notification extends the exemption for life insurers to issue policy documents in physical form, allowing them to issue electronic policies for an additional six months.

The exemption is due to the continuing COVID-19 pandemic, difficulties faced by insurers in printing and dispatching physical documents, and the desirability of adopting digital means for business.

The exemption is valid for six months and applies to all policies issued up to 30th September 2021.

Insurers must confirm policyholder receipt of electronic documents, allow a 30-day free look period, and obtain express consent from policyholders. Proof of receipt must be preserved for calculating the free look period.

If a policyholder insists on receiving a hard copy, the life insurer must issue it without any charges.

The 30-day free look period for electronic policy documents is calculated from the date of receipt confirmed by the life insurer through PIVC or other means, with proof preserved.

 

Guest
Notification No : Ref. No: IRDAI/Life/Cir/Misc/056/03/2021
Published in Miscellaneous
Source : https://www.irdai.gov.in/ADMINCMS/cms/whatsNew_Layout.aspx?page=PageNo4416&flag=1

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