Given the current pandemic situation when usual business activity has come to a toss, the insurance regulator on August 4 allowed insurance companies to offer life insurance policies electronically. Until now physical bonds signifying the title to the policy have been issued.
The IRDAI has released circular exempting entities in the space from issuing policy document and copy of proposal form in physical form, subject to certain conditions. Further the rule shall apply for all policies issued during 2020-21.
The decision is taken in light of the trouble in operational hurdles being faced in the printing and delivery related matter of such policy documents and also with the intent of moving to the digital medium in the best interest of shareholders. And similar to the earlier rules, for these policies also there will be a free-look of 30 days during which the policy holder can request suspension of the policy.
And for the electronic issue of such a policy, policyholder's consent shall be sought and in a case when he or she asks for it they will have to be given the same at no additional cost.