Discount on the premium when buying an electronic insurance policy probably soon


NEW DELHI: Policyholders could soon enjoy a discount on premium if they purchase e-insurance policies directly through an e-platform.

E-insurance, or electronic insurance policy, means a digitally signed document attesting to the insurance contract issued to a policyholder by an insurer in electronic form via a registered insurance repository. Electronic platform means a platform set up in accordance with Irdai’s guidelines issued from time to time for the electronic solicitation and management of insurance policies.

Naval Goel, Founder and CEO of, said, “Many people lose their policies because they cannot locate police documents when filing claims. Having electronic documents and all policies on one platform will eliminate this problem, making it easier to manage insurance on the client side. »

According to the Exposure Draft of the Insurance Regulatory and Development Authority of India (Irdai) – Insurance Regulatory and Development Authority of India (Issuance of e-Insurance Policies), 2022, some of the key proposed changes are:

• Solicitation and management of insurance business via the electronic platform.

• Issue electronic insurance policies for all modes of solicitation.

• Mandatory use of electronic insurance accounts for holding electronic insurance policies.

The prospect purchasing an insurance policy should have the option of purchasing either by submitting a completed physical application form or through an electronic platform, where the electronic application form is completed electronically and the consent of the prospect is obtained.

The Regular stated that each insurer soliciting insurance business electronically, either directly or through insurance intermediaries, must have in place an electronic application form that is consistent with the physical application form, in that concerning the requested product. The electronic proposal form must also include the suitability assessment form, a personalized illustration of the benefits, in accordance with the applicable existing provisions.

The electronic proposal form, submitted by the prospect via the electronic platform, is only valid if it bears the digital signature of the prospect or an authorized electronic signature via an Aadhaar-based one-time password to affirm or confirm details. If the prospect does not wish to verify via the one-time password, a video or audio verification of the confirmation method can be used.

In the event that the application is solicited through an insurance agent or an insurance intermediary, it will be obligatory for such insurance agent or the insurance intermediary, as the case may be, to ‘authenticate submissions by means of digital signatures or respective electronic signatures.

The e-Proposal acquired directly, or through the insurance intermediary, is only permitted through the electronic platform. If business is solicited other than through an electronic platform, each insurer must have systems in place to capture or transpose the information submitted via the physical application into electronic form, in accordance with the press release.

The regulator said: “An insurer must offer a discount on premium rates to policyholders, if purchased directly through the electronic platform. Such discount shall be in accordance with the discount rates filed under the respective Files and Use Guidelines or as specified by the Authority. »

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