IRDAI has issued a draft circular in which it has proposed to introduce verification of transactions through one-time password (OTP) while buying an online insurance policy.
If the proposal goes through, policyholders will have to key in OTP received on their registered phone numbers or email id linked with the Aadhar in addition to digital signature. So far, policyholders were required to use digital signature only to verify and buy insurance policies online.
In the draft circular, IRDAI has said, “The requirement of either a digital signature or Aadhar e-KYC on the prospect is onerous and may not facilitate the issuance of e-insurance policies. It is therefore recommended to allow sale of insurance products using One Time Password in addition to digital and electronic signatures.”
The move is expected to reduce fraudulent selling and claims.
The insurance regulator has asked all stakeholders to submit their suggestions on this draft policy before September 12, 2016.