IRDAI tweaks norms on sale of life cowl with out moist signature

2020/11 12 15:11

Life insurers ought to present a typical presentation on the product being offered with out the bodily signature of the policyholder.

A replica of such standardised presentation must also be e-mailed to the policyholder, together with the coverage doc, stated the Insurance coverage Regulatory and Growth Authority of India (IRDAI) in a partial modification of the rules issued in September allowing insurers to put off the necessary bodily signature on the market of insurance coverage merchandise.

If the sale is made by a person insurance coverage agent, he mustn’t solicit non-single premium unit-linked insurance coverage insurance policies for an annualised premium exceeding ₹50,000 or single premium unit-linked insurance coverage insurance policies exceeding ₹1 lakh, the regulator stated in a round.

As per the brand new norms, the insurer ought to confirm at the very least three per cent of gross sales to establish compliance with these provisions, and data need to be shared with the regulator.

In view of the pandemic, the regulator stated in September that moist signature could be allotted with if insurers inform clients by means of textual content message about situation of coverage doc electronically, having in place mechanisms to confirm receipt of the doc, and preserving all e-records.

Wherever policyholders demand a bodily model of the coverage doc/copy of the proposal, the identical shall be made out there. The exemption might be in drive until March 31, 2021.

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