IRDAI makes e-format must for Rs 10 lakh-plus life policies

Life insurance companies will be required to mandatorily issue an electronic insurance policy for any individual who takes a sum assured of Rs 10 lakh and above, or pays annual premium of Rs 10,000 and above in life insurance. The Insurance Regulatory and Development Authority of India (IRDAI), in its guidelines on issuance of electronic policies, said that an insurer can also discount in the premium rates to the policyholders for electronic insurance policies.

In general insurance, for individual health policies of Rs 5 lakh and above, or annual premium of Rs 5,000 and above are required to be offered in e-format. In retail motor as well as individual overseas travel, all policies will be electronic. For other retail general insurance policies, the cut-off is sum assured of Rs 10 lakh and above or annual premium of Rs 5,000 and above.

Here, micro-insurance policy are exempt from being offered in electronic format. IRDAI said that electronic policies can be issued by the insurers either directly to the policyholders or through the registered insurance repositories. It also said that every insurer shall mandatorily issue e-insurance policies in disaster prone and vulnerable areas as specified by it.

IRDAI, however, said that all policies issued in electronic form by the insurer directly to the policyholder would also have to be issued in physical form unless it is given an exemption. Those policyholders who wish to avail the facility of electronic insurance policy can do so by registering their choice with the insurer.

 


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel