IRDAI extends dispensation for physical signatures in life covers

IRDAI has recently issued a circular saying, “Life Insurers are allowed to obtain the customer’s consent through electronic means, i.e., without requiring wet signature on the proposal form, for the business solicited by Individual Agents and Insurance Intermediaries, under all products, till 30th September 2021.”

The suitability assessment, benefit illustration (wherever applicable) and the completed proposal form will have to be sent to the buyers either on their registered e-mail ID or phone number in the form of a message with a link. The message/mail will have to specifically highlight the sum assured, premium amount payable, policy term and the premium payment term of the proposal being solicited while seeking the buyer’s consent for the policy proposal.

Once the buyer gives consent to the product offered, the benefit illustration and the completed proposal form needs to be affixed by a digital signature. One can also validate it by the One-Time-password (OTP) process.