Reference is invited to the provisions of Section 64 VB of Insurance Act,1938 and the circular ref: IRDA/Life/Misc/Cir/06/05/2015 dated 17th May 2015 on the issue of acknowledgements on collection of premiums. In order to enhance the policyholder protection and information, the following guidelines are issued under the powers vested with Authority vide Section 14(2) of IRDA Act,1999.
Wherever the mobile phone number of the policyholder is available in policy records with the Insurer, the receipt of premium by the Insurer under a policy shall be immediately informed to the concerned policyholder on his mobile phone number by an automatic SMS generated by the system. In case of new contracts, it may be ensured that the correct mobile phone number is captured to ensure SMS is sent on receipt of premium by the Insurer.
All Insurers shall put in place systems and procedures to ensure the above intimation to policyholders. The above guidelines shall be effective from 1st January 2019.
(Dr Subhash C Khuntia)
Source : IRDAI