IRDAI has done away with requirement of obtaining physical or wet signature of clients to sell term insurance policies for insurance agents and intermediaries.
With this, agents and intermediaries will be able to sell term insurance policies just by asking their clients to click on the confirmation link or just validate their consent through OTP.
Sharing the rationale, IRDAI said, “The insurance regulator is in receipt of feedback from various life insurers that the situation arising in the wake of covid-19 outbreak has impacted the traditional manner of canvassing life insurance policies by agents and intermediaries. In particular, the filling-in of the physical proposal forms, obtaining wet signatures on them and subsequent movement of such physical papers, etc., are severely affected. In this backdrop, the life insurers have represented to the IRDAI to allow the option of authenticating the proposals for life insurance through electronic means, in place of physical signature, for the sales made by insurance agents and intermediaries, in addition to the methods presently allowed.”
Life insurance companies and agents will have to ensure that completed proposal form is sent to the prospect on his registered email id or mobile number with a confirmation link. The prospect has to authenticate purchase of a policy through OTP or simply by clicking confirmation link before buying a term plan. Insurance companies can receive payment only if the prospect has given his consent.
In addition, agents and intermediaries will have to declare that they have used approved sales material during solicitation process. Life insurers will have to ensure that they provide such materials to their agents and intermediaries.
Further, life insurers will have ensure the suitability of the products sold to policyholders.
This facility is available till December 31, 2020 on pilot basis and is limited to pure risk products like term insurance. Agents will have to obtain physical or wet signature of clients on ULIPs, endowment and money back policies.
