Good news! IRDAI allows insurers to issue life insurance policies electronically

As certain operations remain closed in the wake of COVID-19, the Insurance Regulatory and Development Authority of India (IRDAI) has given a major relief to both insurance providers as well as subscribers. The IRDAI, on Tuesday, allowed life insurers to issue life insurance policies electronically. The insurance regulator issued a circular exempting life insurance companies from the requirement of issuing policy document and copy of proposal form in physical form, subject to certain conditions. 

"In the wake of emerging situation of Covid19 Global Pandemic and taking into account (i) the feedback received from the Life Insurers expressing difficulties in printing and dispatch of policy documents and (ii) the desirability of adopting digital means of doing business in the interests of policyholders and other stakeholders, exemption is allowed by Competent Authority, from the requirement to issue policy document, copy of proposal form in physical form,” the circular read.  

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It further said that exemption will be given to life insurers confirming the date of receipt of electronic policy document by the policyholder through PIVC or other means and preserving the proof so that Free Look period may be calculated from that date. 

It said that thirty (30) days free look period may be allowed for all such electronic policy documents. Return of electronic policy document by mail by policyholder with clear intention of cancellation of policy shall be valid for Free Look Cancellation. 

Also, express consent of the policyholder to receive electronic policy bond is required. If a policyholder insists on hard copy, the same has to be issued without any charges. 

Policy document shall be sent to the email id submitted by the proposer.