NPS subscribers no longer required to fill proposal form to buy annuity

IRDAI has done away with the requirement of filing a proposal form for NPS subscribers to buy immediate annuity plan from the insurance companies.

So far, NPS subscribers were required to submit an exit form to NPS and a proposal form to insurers at the time of exiting NPS or attaining superannuation (retirement).

With this, the exit form of NPS will be considered as the proposal form to purchase immediate annuity from an insurance company. IRDAI said, “The Exit Form submitted by NPS retiree must be considered as the proposal form, for offering the immediate annuity product by the insurance companies.”

Another key development is implementation of Aadhaar based authentication to verify life certificates. Retirees are required to submit life certificate (Jeevan Pramaan) to avail the benefits of pension. However, they can verify such a document with the insurance companies through Aadhaar based authentication.

IRDAI said, “In order to facilitate ease of living for all senior citizens who are receiving annuity payments the current framework of Aadhar based authentication for life verification certification such as Jeevan Praman, a Govt. of India initiative on biometric enabled digital service for pensioners, to be adopted.”