Page 10 - Insurance Times August 2020

advance before admission even from "General Insurance companies must from various life insurers that the situ-
patients having cashless medical insur- ensure that the vehicle must have a ation arising in the wake of COVID-19
ance. In the wake of such complaints, valid PUC certificate at the time of outbreak has impacted the traditional
IRDA issued the circular on cashless renewal of motor vehicle insurance," manner of canvassing life insurance
service to policy holders by hospitals, said IRDAI in a circular dated July 6, policies by agents and intermediaries.
the official told. "Where any network 2018. This has been reiterated by the In particular, the filling-in of the physi-
provider (hospital) denies cashless fa- insurance regulator through another cal proposal forms, obtaining wet sig-
cility and deviates from agreed terms circular on August 20. natures on them and subsequent move-
of the SLA (service level agreement), In August 2017, the apex court in M.C. ment of such physical papers, are se-
insurance company shall take an ap- Mehta vs. Union of India and Others verely affected. In this backdrop, the
propriate action against such network case had directed insurers not to insure life insurers have represented to the
providers," the circular said. One of a vehicle unless it has a valid PUC cer- Authority to allow the option of au-
such "appropriate" actions is blacklist- tificate on the date of renewal of the thenticating the proposals for life insur-
ing the erring hospital, a senior official insurance policy. It is mandatory for ance through electronic means, in
of an insurance firm said. place of physical signature, for the
every vehicle owner to have a valid
PUC certificate to comply with the pre- sales made by insurance agents and
Insurance companies can- scribed emission norms. A vehicle with- intermediaries, in addition to the meth-
not reject claims for not out such certificate is liable to be pros- ods presently allowed," said IRDAI.
ecuted under the Motor Vehicles Act. IRDAI has asked the insurer to main-
holding valid PUC certifi- tain verifiable, legally valid evidence for
cate Physical signatures not re- the proposer's consent received for the
fully completed proposal form. Further,
IRDAI, has clarified that a motor insur- quired to buy a new life
ance company cannot deny any claim the insurer cannot accept any pay-
for not holding a valid PUC or Pollution insurance policy ment towards proposal deposit till the
Under Control certificate. PUC certifi- IRDAI , has allowed life insurers to receipt of consent of the proposer.
cate is provided to vehicles that un- obtain the customer's consent without According to IRDAI, it will be the duty
dergo the PUC test successfully. requiring wet signature on the hard of life insurer to provide approved digi-
copy of the proposal form. They can tal sales material to the insurance
The certification indicates that the
send the completed proposal form to agents / intermediaries. The life insurer
vehicle's emissions are in alignment
with standard pollution norms and are the customer's registered e-mail ID or should also make sure that the agents
not harmful to the environment. It is mobile number in the form of an e-mail use only that material while soliciting
mandatory for all vehicles on Indian or a message with a link. Once the elec- the business.
roads to carry a valid PUC certification. tronic form is received, the customer Also, the insurer should authenticate
can give his or her consent by clicking the e-mail IDs and mobile numbers of
"It is hereby clarified that not holding the confirmation link or by validating
a valid PUC certificate is not a valid the OTP shared. the customers by conducting de-dupli-
reason for denying any claim under a cation of such data.
motor insurance policy," said IRDAI in Earlier IRDA allowed life insurance The insurer will be responsible for en-
its release dated August 6 regarding companies to issue electronic or e-poli- suring the suitability of the plan pur-
valid PUC certificate at the time of cies to the customers on their e-mail chased for the customer. Insurer will
renewal of motor vehicle insurance. IDs during FY2020-21 . This was done also be responsible to carry out pre-is-
to address difficulties faced by life in- suance verification calls in respect of
IRDAI released the clarification amid surers in printing and dispatch of policy
some misleading media reports stating documents. all such proposals.
that there is if there is no valid PUC cer- IRDAI has put out this e-verification and
tificate at the time of accident, claim IRDAI announced these new measures e-purchase of life insurance policy on an
under the motor insurance policy is not in response to feedback from several experimental basis with immediate ef-
payable by the insurance company. How- life insurance companies facing fect till the end of this calendar year.
ever, a valid PUC certificate is required as troubles due to the outbreak of The electronic facility is limited to pure
a mandatory document at the time of Covid19. risk products, i.e., products that do not
renewal of the motor vehicle insurance. "The Authority is in receipt of feedback involve any savings element. T

10 The Insurance Times, August 2020