Simpler e-verification for online policies

In a draft exposure released on 2 September, the Insurance Regulatory and Development Authority of India has proposed to make e-verification of know-your-customer (KYC) details simpler for customers buying insurance online (http://bit.ly/2crzpHA ).

It proposes to amend the e-insurance policy issuance regulations that came out in June and become effective from October by allowing authentication by a one-time password (OTP) as well.

“The draft has proposed to recognise electronic signature not just through Aadhaar but from any database that can verify policyholder’s KYC details. E-signature replaces the need for both wet signatures and KYC,” said S.V. Ramanan, chief executive officer, CAMS Insurance Repository Services Ltd.

Currently, only e-authentication using Aadhaar e-KYC services is recognised in the form of an e-signature. According to the regulations, if a person buys insurance online, the insurer will have to offer an electronic proposal form and ask for e-signatures. This is the practice even now, but, according to industry experts, insurers usually ask for wet signatures for big-ticket policies (premium above Rs.50,000 in life insurance).