Page 11 - Insurance Times November 2020
P. 11

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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