E-insurance buyers may soon get discounts on premiums

Policyholders may soon get a discount on premium if they purchase electronic insurance policies directly through an electronic platform.

E-insurance, or electronic insurance policy, means a digitally signed document evidencing the insurance contract issued to a policyholder by an insurer in an electronic form through a registered insurance repository. An electronic platform means a platform set up in compliance with the Irdai’s guidelines issued from time to time for soliciting and servicing insurance policies through electronic mode.

Naval Goel, Founder and CEO of PolicyX.com, said, “A lot of people lose their policies because they cannot locate the policy documents at the time of filing claims. Having e-documents and all the policies at a single platform will eradicate this issue, providing ease of managing insurance at the customer’s end.”

According to the Insurance Regulatory and Development Authority of India (Irdai) exposure draft - Insurance Regulatory and Development Authority of India (Issuance of e-Insurance Policies) Regulations, 2022, some of the key changes being proposed are:

• Solicitation and servicing of insurance business through the electronic platform.

• To issue e-insurance policies for all modes of solicitation.

• Mandatory use of electronic insurance accounts for holding e-insurance policies.

The prospect purchasing an insurance policy must have the option to buy either by submitting a completed physical proposal form or through an electronic platform, where the e-proposal form is electronically filled in, and the prospect’s consent is obtained.

The regular said every insurer soliciting insurance business through electronic mode either directly or through the insurance intermediaries shall have in place an e-proposal form consistent with the physical proposal form, with respect to the product being solicited. E-proposal form shall also include the suitability assessment form, customized benefit illustration, as per the extant provisions applicable.

E-proposal form, submitted by the prospect through the electronic platform, shall be valid only if it carries digital signature of the prospect or an authorized electronic signature through an Aadhaar based one-time password to affirm or confirm the details. If the prospect is unwilling to verify through the one-time password, either video or audio verification of the confirmation method may be used.

In case, the proposal is being solicited through an insurance agent or insurance intermediary, it shall be mandatory for such insurance agent or the insurance intermediary, as applicable, to authenticate the submissions through respective digital signatures or electronic signatures.

The e-Proposal procured directly, or through the insurance intermediary, shall be allowed only through the electronic platform. In case of solicitation of business other than through electronic platform, every insurer shall establish systems in place to capture or transpose the information submitted through the physical proposal to electronic form, as per the press release.

The regulator said, “An insurer shall offer discount in the premium rates to the policyholders, if purchased directly through the electronic platform. Such discount shall be in accordance with the discount rates filed under respective File & Use guidelines or as specified by the Authority.”