The Insurance Regulatory Authority of India vide its circular dated 5th August 2020 has allowed life insurers to obtain the customer’s consent without requiring a wet signature on the hard copy of the proposal form.
The insurers need to “maintain verifiable, legally valid evidence for the proposer’s consent received for the fully completed proposal form. They shall not accept any payment towards proposal deposit till receipt of consent.”
The completed proposal form shall be sent to the prospect 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 and consent shall be obtained if the client presses the confirmation button.
The life insurance companies will be responsible for authenticating the e-mail IDs / mobile numbers by conducting de-duplication of such data. They also need to conduct pre-issuance verification calls in respect of all such proposals.
The decision to dispense with physical signature on proposal forms is being allowed on an experimental basis with immediate effect till December 31, 2020, and is limited to pure risk products.
Further, any Grievances pertaining to sales logged in through the above method shall be separately maintained by the Life Insurers and a monthly statement shall be submitted to the Authority.
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