Selling of policies via e-commerce not accepted by all

Recently, Insurance Regulatory and Development Authority of India (IRDAI) had delivered guidelines on selling and servicing of non-life insurance policies through e-commerce platforms but it was not every stakeholder’s cup of tea.

National Insurance Company CMD K Sanath Kumar said even though the new guidelines bring in regulatory clarity, it has a condensed focus on prices and not on services.

The new guidelines allow insurance intermediates to provide aggregated advisory services and insurance products through online platforms. Kumar said the servicing of insurance policies, particularly settlements, should also be a critical factor in deciding on a policy. “We will give our input to the IRDAI on the issue,” he said.

Financial market intermediary Bajaj Capital, however, was enthusiastic about the new guidelines. Anil Chopra, Group CEO and Director, Bajaj Capital, said his company was creating an online platform and a mobile application at a cost of around Rs. 3 crore.

“The insurance module of the platform and the app would be ready by October,” he said.
He said the guidelines have done away with any kind of physical intervention for a transaction. “A one-time password makes it strictly digital.”