Agents and insurance intermediaries are no longer required to obtain wet signature of their clients to sell insurance policies till March 31
IRDAI has extended the scope of digital signature across all life insurance policies like whole life insurance, money back policies, endowment policies and ULIPs. Also, the insurance regulator has asked insurance companies and intermediaries to continue to rely on digital signature till March 31, 2021 to sell policies.
So far, IRDAI had allowed insurance companies and intermediaries to sell pure term, motor and health insurance with digital signature till December 31, 2020.
With this, agents can now sell all life insurance policies without obtaining wet signature of clients till March 31, 2021 and non-life policies like health and motor insurance policies till December 31, 2020.
However, IRDAI has clarified that agents can sell ULIPs digitally only if annual premium doesn’t exceed Rs.50,000 and premium under single premium policy doesn’t not exceed Rs.1 lakh.
Agents and intermediaries will be able to sell term insurance policies just by asking their clients to click on the confirmation link or just validating their consent through OTP.
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 the 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.