India's insurance regulator has proposed draft guidelines for dematerialisation of all insurance policies.
Only E-Insurance Policies
Insurance policies can be purchased by either submitting a physical proposal form or through an electronic platform where e-proposal forms are electronically filled and consent is obtained.
However, all new proposals procured directly or through the insurance intermediary will be allowed only through the electronic platform. The IRDAI has proposed that the insurer must establish systems to convert physical proposals into an electronic form.
The e-proposal form would be valid when signed digitally or via Aadhaar-based OTP or by audio or video verification.
If obtained by agents or intermediaries, it should be authenticated by their digital or electronic signature.
The draft said an electronic insurance account will be mandatory for every policyholder, and all policies shall be held in an e-insurance account, which will be unique to each customer.
The policyholder can opt for any one of the registered insurance repositories.
The insurer will create the eIA and shall be responsible for educating the customer with regards to the same.
What Will E-Insurance Help With?
Automatic capturing of prospect's information and collection of premium directly into the bank account of the insurer.
Completion of the underwriting of the proposal for insurance.
Issuance of the e-insurance policy document.
Periodic forwarding of auto-generated renewal notice to the policyholder, indicating the renewal date and the applicable grace period, if any.
Collection of renewal premium directly into the bank account of the insurer through online-recognised payment gateways of the insurer.
Subsequent policy servicing requirements, if any.
Claims servicing through electronic mode. The insurer shall obtain details from the insurance repository of the electronic insurance policy maintained in the policyholder’s eIA and process the claim.
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