“Insurance Regulatory and Development Authority of India (Issuance of E-Insurance Policies) Regulations, 2016” establishes guidelines for the electronic issuance and management of insurance policies. Here’s a detailed summary of the regulation:
Chapter I: Preliminary
Title and Commencement: These regulations are named the IRDAI (Issuance of e-Insurance Policies) Regulations, 2016, effective from October 1, 2016.
Definitions: Clarifies terms like “e-Insurance Account (eIA)”, “e-signature”, “Digital Signature”, “e-proposal”, and “e-insurance policy”, among others.
Chapter II: e-Proposal Form & Issuance of e-Insurance Policy
e-Proposal Form: Insurers must provide an electronic version of the proposal form, which includes a section for the eIA number. If a prospect does not have an eIA, insurers must facilitate its creation.
Issuance of Electronic Insurance Policies: Policies that meet certain criteria in terms of sum assured or premium must be issued electronically, either directly to the policyholder or through registered Insurance Repositories. Physical copies must also be issued unless exempted by the Authority.
Exemptions: The Authority may exempt the issuance of physical copies if it is in the interests of policyholders and promotes the orderly growth of the Insurance Industry.
Compliance: Electronic policies must be digitally signed as per the applicable laws. The physical version, if issued, should replicate the electronic form.
Schedule I: Criteria for Issuance
Specifies criteria for electronic issuance based on the line of business, such as sum insured and premium requirements for different types of insurance policies (term life, general insurance, health insurance, etc.).
Discounts: Insurers may offer discounts on premiums for policies issued electronically under specified conditions.
Existing Policies: Policyholders can opt to convert their existing policies to electronic format.
Mandatory e-Issuance: In disaster-prone and vulnerable areas, insurers are required to issue policies electronically.
Miscellaneous Provisions
Power of Authority: The Chairperson of the Authority may issue clarifications, directions, and guidelines to address any difficulties in applying or interpreting these regulations.
These regulations facilitate the digital transformation of the insurance sector by promoting the issuance of electronic insurance policies, thereby enhancing accessibility, efficiency, and compliance with modern technological standards.
