Money & Banking

IRDAI tweaks norms on sale of life cover without wet signature

Our Bureau. Hyderabad | Updated on November 12, 2020

Life insurers should provide a standard presentation on the product being sold without the physical signature of the policyholder.

A copy of such standardised presentation should also be e-mailed to the policyholder, along with the policy document, said the Insurance Regulatory and Development Authority of India (IRDAI) in a partial modification of the guidelines issued in September permitting insurers to do away with the mandatory physical signature for sale of insurance products.

If the sale is made by an individual insurance agent, he should not solicit non-single premium unit-linked insurance policies for an annualised premium exceeding ₹50,000 or single premium unit-linked insurance policies exceeding ₹1 lakh, the regulator said in a circular.

As per the new norms, the insurer should verify at least 3 per cent of sales to ascertain compliance with these provisions, and records have to be shared with the regulator.

In view of the pandemic, the regulator said in September that wet signature can be dispensed with if insurers inform customers through text message about issue of policy document electronically, having in place mechanisms to verify receipt of the document, and preserving all e-records.

Wherever policyholders demand a physical version of the policy document/copy of the proposal, the same shall be made available. The exemption will be in force till March 31, 2021.

Published on November 12, 2020

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