Page 11 - Insurance Times November 2020

The cost of treatment for dengue can without the physical signature of the involve any savings element) electroni-
range anywhere from Rs 25,000 to Rs policyholder. A copy of such cally till December 31.
70,000. Therefore, having a vector- standardised presentation should also On a review of the working of the ar-
borne disease plan in place will help the be e-mailed to the policyholder, along rangement and on the basis of feed-
customers to protect themselves with the policy document, said the In- back from the life insurers, the Insur-
against the vector-borne disease. Vec- surance Regulatory and Development ance Regulatory and Development Au-
tor-borne diseases such as dengue, Authority of India (IRDAI) in a partial thority of India (IRDAI) has now ex-
malaria have always been common in modification of the guidelines issued in tended the time period and the facility
India, however, people take it lightly in September permitting insurers to do to all products. "Life Insurers are al-
the initial phase. away with the mandatory physical sig- lowed to obtain the customer's consent
The standard cover entails one base nature for sale of insurance products. through electronic means i.e., without
requiring wet signature on the proposal
cover which will be offered on an in- If the sale is made by an individual in-
demnity basis and at most two optional surance agent, he should not solicit non- form, for the business solicited by indi-
covers which will be offered on a ben- single premium unit-linked insurance vidual insurance agents and insurance
intermediaries under all products, till
efits basis. Also, the total amount pay- policies for an annualised premium ex- March 31, 2021," it said in a circular.
able in respect of base and optional ceeding Rs. 50,000 or single premium
covers shall not exceed 100 per cent of unit-linked insurance policies exceeding It further said the suitability assess-
the sum insured during a policy period. Rs. 1 lakh, the regulator said in a circu- ment, benefit illustration (wherever
"The premium payable towards op- lar. As per the new norms, the insurer applicable) and the completed pro-
posal form should be sent to the
tional cover shall be specified sepa- should verify at least 3 per cent of sales proposer on his/ her registered e-mail
rately so as to enable policyholders to to ascertain compliance with these pro- ID or mobile number in the form of an
choose and pay based on the need", visions, and records have to be shared e-mail or a message with a link as the
Irdai said. Under the base cover, the with the regulator. case may be. "The proposer, if he/she
hospitalization expenses incurred by In view of the pandemic, the regula- wishes to consent to the product of-
the insured person for the treatment tor said in September that wet signa- fered, the benefit illustration and the
of vector-borne diseases will be cov- ture can be dispensed with if insurers completed proposal form, may do so by
ered, where room, boarding and nurs- inform customers through text mes- affixing digital signature or by clicking
ing expenses of up to 2 per cent of sum sage about issue of policy document the confirmation link or by validating
insured for the sum insured above Rs electronically, having in place mecha- the OTP shared," IRDAI said.
20,000 and a fixed amount of Rs 500/ nisms to verify receipt of the docu- Also, the insurer should not insist on
day for sum insured up to Rs 20,000 ment, and preserving all e-records. payment of moneys towards proposal
will be provided. It will also cover costs deposit till the receipt of consent of the
related to medicine, PPE kits, gloves, Wherever policyholders demand a proposer. Certain conditions have also
and masks among other things. physical version of the policy docu- been imposed in respect of sales made
ment/copy of the proposal, the same
Also, expenses on hospitalization for a shall be made available. The exemp- by individual insurance agents.
minimum period of 24 hours will be tion will be in force till March 31, 2021. The insurance agents should not solicit
admissible. For the intensive care unit, non-single premium unit-linked insurance
cost upto 5 per cent of sum insured IRDAI extends Electronic policies for annualised premium exceed-
above Rs 20,000 and a fixed sum of Rs ing Rs 50,000 or single premium unit-
1000/day for the sum insured up to Rs Consent for Life Insurers linked insurance policies exceeding Rs
20,000 will be covered. Also, ambu- IRDAI has extended the facility for life 1,00,000. Besides, the insurer should verify
lance charge of a maximum of Rs 2,000 insurers to obtain the consent of prospec- at least 3 per cent of sales to ascertain
will be covered. tive policy holders electronically by three compliance with these provisions.
months till March 31, 2021. In view of Insurers have been asked to provide
IRDAI tweaks norms on the disruption of normal business activ- appropriate training to all persons in-
sale of life cover without ity following outbreak of the coronavirus volved in the sales or solicitation pro-
pandemic, IRDAI in August, on an ex- cess to ensure that the consent of the
wet signature perimental basis, had permitted life in- customer is obtained only after clear
Life insurers should provide a standard surers to obtain consent of customers for information has been provided on the
presentation on the product being sold pure risk products (policies which do not product being sold. R

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