The Insurance Regulatory and Development Authority of India vide its notification dated 10th September 2020 has allowed Insurers to send the policy document and a copy of the proposal form through digital/electronic mode which shall be sent to the registered e-mail id or mobile number provided by the customer only on the specific consent provided by the policyholder.
IRDI has also exempted the insurers from mandatorily sending hard copy of the document to policyholders. However, the policies will have to be sent through electronic mode on the registered e-mail.
The policy document sent electronically shall contain all the schedules, terms and conditions, benefits etc that are otherwise available in the physical document and the policy document sent electronically is as valid as the physical policy contract/document. Wherever the policy holder demands the physical version of the policy document/copy of the proposal, the same shall be made available.
Further, where proposal forms are collected, Insurers are also allowed to obtain the customer’s consent without requiring a wet signature on the hard copy of the proposal form subject to that the completed proposal form shall be sent to the prospect on his / her registered e-mail ID or mobile number by means of a message with a link, as the case may be and If the proposer wishes to give consent to the proposal, the same may be permitted by providing a link for confirmation or through One Time Password (OTP) duly validated.
The above exemption shall be valid till 31st March 2020.
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