IRDAI has extended the issuance of electronic policies for another six months till September 30 due to the second wave of covid-19.
Due to the continuing pandemic, insurers are facing difficulty in printing, handling and dispatching of policy documents. Hence the regulator has decided to extend issuance of digital policies.
Insurance companies can continue to send policy documents to customers through email id till September. However, if a policyholder insists on a hard copy, the companies have to issue it without any charges.
The regulator has also extended the date of obtaining digital signature to September 30, 2021.
“Life Insurers are allowed to obtain the customer’s consent through electronic means, i.e., without requiring wet signature on the proposal form, for the business solicited by individual agents and insurance intermediaries, under all products, till September 30, 2021,” said IRDAI.
Besides, there will be a 30 day ‘free look’ period for policyholders with electronic policies. Earlier, this period was 15 days.
The free look period is the time in which a new life insurance policy owner can terminate the policy without penalties, such as surrender charges. If policyholders are not satisfied and wish to cancel, the policy purchaser can receive a full refund.
Life insurers can confirm the date of receipt of electronic policy documents and calculate ‘free look’ period from that date.