While SEBI is actively pursuing the possibility of selling mutual funds on e-commerce platforms, the insurance regulator has dropped its idea of selling insurance products on such sites.
IRDAI Chairman T.S. Vijayan has clarified that the insurance regulator is not planning to come out a draft guidelines on distribution of insurance policies through e-commerce websites like FlipKart, Amazon and Snapdeal.
He was speaking on the sidelines of the launch of Registry of Hospital in Network of Insurance (ROHINI) organized by Insurance Information Bureau of India (IIBI) held in Mumbai.
Last month, Nilesh Sathe, Member Life, IRDAI said that IRDAI will release a draft exposure guidelines on the possibility of selling insurance products through e-commerce platforms. He was speaking at the fourth CII Financial Distribution Summit held in Mumbai recently.
Vijayan said that life insurance is a push product and cannot be sold through e-commerce platforms. He said that investors need advice to understand insurance policies better. Also, one needs to undergo through KYC process to buy insurance, he said.
Currently, most insurance companies sell online policies directly through their websites. Also, a few distributors like PolicyBazaar and PolicyBachat have acquired insurance broking license to distribute multiple policies through their platforms.
IRDAI norms don’t allow web aggregators to distribute insurance policies. They can only compile and provide information about insurance policies of various companies on their website.