The Insurance Regulatory and Development Authority of India (IRDAI) has allowed life insurance and health insurance companies to obtain the consent of the buyers of insurance policies through electronic means i.e., without requiring a wet signature on the proposal form till 30th September 2021. Earlier such mandate was provided to the insurers till 31st March 2021. The rule will apply to all insurance products sold by individual agents and insurance intermediaries.
The suitability assessment, benefit illustration (wherever applicable) and the completed proposal form shall be sent to the proposer on his / her registered e-mail ID or mobile number in the form of an e-mail or a message with a link as the case may be. The communication with the buyer needs to clearly highlight the Sum Assured, the premium amount payable, policy term and the premium payment term of the proposal being solicited while seeking the proposer’s consent for the same.
The proposer, if he/she wishes to consent to the product offered, the benefit illustration and the completed proposal form, may do so by affixing a digital signature or by clicking the confirmation link or by validating the OTP shared. The Insurer shall not insist on payment of money towards proposal deposit till the receipt of the consent of the proposer.
Filling up the proposal form is only a part of the life insurance buying process. Make sure you understand the policy features, the working of the plan, the death and maturity benefits before buying. While the digital mode of buying and paying premium makes it simpler and easier, and informed buying will go a long way in meeting your long term goals. Call the insurer or speak to the insurance agent to dispel the doubts before dispensing with the wet-signature and opting for OTP based purchase of a life insurance policy.
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