Now the customers can buy all life insurance policies online through digital signatures or OTP-based registrations for ease of purchases.
A recent circular of the Insurance Regulatory and Development Authority of India (IRDAI) has permitted the sale of life insurance policy online without the need of physical signature till March 31, 2021. Amid the ongoing COVID-19 pandemic, this decision of IRDAI is set to help customers willing to buy life insurance policies online. This will also boost the online sale of policies and eliminate chances of fraud.
According to Dhirendra Mahyavanshi, Co-Founder, Turtlemint (an InsurTech Company), the IRDAI’s circular for life insurers which now allows life insurance to be sold online without the need for physical or wet signatures of customers on the proposal form is quite a progressive step towards complete digitisation. In the time of the pandemic, this change is a welcoming one with social distancing and online transactions across all other investment products
“Now the customers can buy all life insurance policies online through digital signatures or OTP-based registrations for ease of purchases. As of now, this mandate is available for policies sold till 31st March 2021 even if it is sold via intermediaries and agents,” Mahyavanshi told FE Online.
According to the Turtlemint co-founder, some of the benefits of the new IRDAI decisions for customers are:
- Customers can buy a life insurance policy online with minimal hassles even through their choice of intermediaries if needed.
- Since the authentication would be done through digital signatures or OTPs, the chances of fraud are eliminated.
- Customers would get the policy details in their email IDs and the policy would be sold once customers verify the link shared on the email
- Payment of premium would be made only after the customer verifies the policy link on the email through his/her digital signature or OTP. This would give customers time to check the policy details and buy the policy only when they are satisfied.
- Insurance companies have been asked to do due diligence on policies sold without physical signatures. This would also weed out the possibility of frauds.
- In this post-COVID world, customers can practice social distancing norms and buy the policies online. This would not only keep them safe but also allow them to fulfil their insurance needs
“Thus, the IRDAI’s move is beneficial for customers and would make it easier for them to invest in life insurance plans online conveniently,” he said.