There is a good news for insurance agents and intermediaries. IRDAI has done away with requirement of obtaining physical or wet signature of clients to sell non-life insurance policies for insurance agents and intermediaries.
With this, agents and intermediaries will be able to sell health and motor insurance policies just by asking their clients to click on the confirmation link or validate their consent through OTP.
Sharing the rationale, IRDAI said, “In the wake of Covid-19 pandemic, IRDAI has received representations from the insurance companies for exemption to all individual / retail health insurance policies issued by general and health insurance companies (the insurers) from the requirement to issue physical policy document and hard copy of proposal form.”
Non-life insurers and health 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. Non-life insurers will have to ensure that they provide such materials to their agents and intermediaries.
Further, non-life insurers will have ensure the suitability of the products sold to policyholders.
This facility is available till December 31, 2020 on pilot basis. Currently, agents are allowed to sell term insurance policies through OTP based verification method.
