Page 9 - Insurance Times April 2021
P. 9

coverage and policy wordings across  IRDAI extends dispensation       dispatch a hard copy of the document
         the industry.                                                         even if a policy was solicited through
                                            for physical signatures in life
         Minimum entry age to buy such a                                       an electronic mode.
         policy will be 18 years while the                                     Given the COVID-19 outbreak and the
         maximum age at entry at least 70 for  IRDAI has recently issued a circular  resultant lockdown to combat the
         insured members, including the     saying, "Life Insurers are allowed to  virus, life insurers had expressed
         principal insured. The standard PA  obtain the customer's consent through  difficulty in printing and dispatching
         product will be offered on an individual  electronic means, i.e., without  policy documents. Insurers can now
         basis, but when offered as a family  requiring wet signature on the   continue to send all life insurance
                                            proposal form, for the business    policies electronically to the
         cover, the chosen sum insured will
                                            solicited by Individual Agents and  policyholder's e-mail ID till September
         apply to each family member
                                            Insurance Intermediaries, under all  end of this year.
                                            products, till 30th September 2021."  Physical policies are not mandatory
         IRDAI increases maximum            The suitability assessment, benefit  now if the insurer has obtained the
                                            illustration (wherever applicable) and  consent of the policyholder. However,
         cover under Arogya                 the completed proposal form will have  if a policyholder insists on a hard copy,

         Sanjeevani Policy to Rs. 10        to be sent to the buyers either on their  the companies have to issue it without
                                            registered e-mail ID or phone number  any charges.
         lakh                               in the form of a message with a link.
         With an objective to bring more people  The message/mail will have to Insurers may soon be able
         under the ambit of health insurance  specifically highlight the sum assured,  to launch covers without
         IRDAI has recently hiked the maximum  premium amount payable, policy term  regulator nod
         cover under the standard health    and the premium payment term of the
         insurance plan - Arogya Sanjeevani  proposal being solicited while seeking  IRDAI wants to move to a 'use and file'
         Policy - from Rs. 5 lakh to Rs. 10 lakh.  the buyer's consent for the policy  system where insurers can market
         IRDAI has made it mandatory for    proposal.                          products without first obtaining an
                                                                               approval from the regulator, stated
         insurers to offer a sum insured    Once the buyer gives consent to the  IRDAI Chairman Subhash C. Khuntia.
         between Rs. 50,000 to Rs. 10 lakh  product offered, the benefit       This is in contrast to the current 'file
         under the Arogya Sanjeevani policy as  illustration and the completed proposal  and use' system where if an insurer
         against the previous range of Rs. 1 to  form needs to be affixed by a digital  wishes to launch a new product, it has
         Rs. 5 lakh.                        signature. One can also validate it by  to file an application with IRDAI and
                                            the One-Time-password (OTP) process.
         In a regulator IRDAI stated, "In order                                can sell the product only after getting
         to enhance the coverage available                                     all the regulatory approvals.
                                            IRDAI allows life insurers
         under Arogya Sanjeevani Policy, in                                    Subhash C. Khuntia said at the Virtual
         partial modification of the extant  to issue e-policies till 30       Actuarial Conclave 2021, "We have
         guidelines, insurers shall mandatorily  September                     already started this in some of the
         offer the sum insured between Rs.                                     segments and we would like to go
                                            IRDAI has recently said that the life
         50,000 to Rs. 10 lakh under the                                       further. Unfortunately, this experiment
                                            insurance companies can issue
         standard product from 1 May, 2021, or  electronic policies for six more months  which we tried sometime back, we
         earlier."                          till 30 September, 2021, in the wake of  found that some of the 'use and file'
                                                                               products did not live up to the
         IRDAI is also taking a closer look at  COVID-19 pandemic.
                                                                               regulatory requirement. He also said
         pricing and has asked insurance    IRDAI in August had allowed insurers  the number of actuaries in the country
         companies to get an actuarial review  to send all life insurance policies  is abysmally low for a country of India's
         of the viability of every health plan at  electronically to the policyholder's e-  size. He called for increasing the
         the end of the year to ensure that all  mail ID till the end of the financial year  number of actuaries to at least 1,000-
         health products are sustainable.   2020-21. Earlier, companies had to  1,200, from the current 458.

                                                                           The Insurance Times, April 2021   9
   4   5   6   7   8   9   10   11   12   13   14