IRDAI has done away with the need to submit a separate proposal form for taking an annuity product from proceeds of National Pension Scheme (NPS).
Currently, retirees submit an exit form to NPS and a proposal form to insurers at the time of superannuation. The insurance sector regulator has also allowed insurance companies to take the annual life certificate through digital means.
“Now, the exit form of NPS will be treated as proposal form for purchasing annuity, thereby reducing the time and efforts of senior citizens as well as insurers. Also, in order to increase the adoption of technology, insurers have been advised to adopt Aadhaar-based authentication for verification of life certificate, such as Jeevan Pramaan, a Government of India initiative on biometric-enabled digital service,” IRDAI said in a release.
NPS subscribers are required to utilise at least 40% of the total accumulated corpus to purchase an annuity plan at the time of maturity. The remaining 60% is eligible for withdrawal as lump sum at retirement.
