Page 52 - Insurance Times December 2021

3. Insurers may note that the revised instructions shall not to open current accounts for customers who have availed
come into effect from the financial year 2021-22 and of credit facilities in the form of cash credit (CC) / overdraft
the uploading of disclosures on website shall be on (OD) from the banking system.
quarterly basis from the period ending 30th September, On a review, the central bank in December last year permit-
2021 whereas publishing in Newspapers will be on half ted banks to open specific accounts that are stipulated un-
yearly basis from the period ending 30th September, der various statutes and instructions of other regulators/
2021. The insurers may also make the quarterly regulatory departments, without any restrictions placed in
disclosures in the revised formats for the period ending terms of the August 2020 circular.
30th June, 2021 on voluntary basis on their websites.
"Based on the requests received by the Authority, to avoid
4. The insurers are hereby, directed under Section 14 (2) hardships, if any, faced by the insurers in maintaining cur-
(e) of the IRDA Act, 1999 to take necessary action to rent accounts with banks, it is clarified that the respective
ensure compliance with the public disclosures insurers may maintain current accounts in an appropriate
requirements as indicated in Annexure A, from the FY number of banks for the purpose of premium collection,
2021-22. management expenses, policy payments, investment opera-
tions, etc., for the convenience of the policyholders and for
S N Rajeswari
the ease of doing business," Irdai said.
Member- F&A (In-charge)
Insurers maintain separate current accounts with banks at
Insurers can maintain current accounts different operational levels (Branch offices, Controlling of-
in appropriate number of banks: Irdai fices, Corporate office) for different purposes, including, pre-
mium collection, management expenses, policy payments,
Insurance regulator Irdai on Wednesday said insurers can investment operations.
maintain current accounts in an appropriate number of banks
for premium collection and policy payments for the conve- Maintenance of current accounts at different operational
nience of policyholders and ease of doing business. Insur- levels for specific purposes helps the insurers in managing
ance Regulatory and Development Authority of India (Irdai) funds, reconciliation of transactions and servicing claims of
has issued the clarification in the backdrop of the RBI's circu- policyholders efficiently, Irdai said.
lar on "Opening of Current Accounts by Banks - Need for The regulator also said the audit committee of the insurers
Discipline".
shall review annually the need for having multiple current
In the August 2020 circular, the RBI had instructed banks accounts and rationalisation, if any, as may be required. T

Max Life Insurance Enhances 'Buy Now, Pay at Approval' Feature for Term Insurance

Purchase, Ensuring Hassle-free Digital Customer Journeys

Strengthening its commitment towards superior customer servicing, Max Life Insurance Company Ltd. (“Max Life” /
“Company”) has enhanced the ‘Buy Now – Pay at Approval’ feature available on term insurance purchase for cus-
tomers. Launched last year for policies bought online, the feature allows customers to apply for a policy through a
digital payment method. This helps ensure that the premium amount is not deducted until the proposal evaluation
by the insurer. While the feature was only available on credit card payments last year, with the increase in digital
transactions and diversification of payment options, the facility now applies to transactions made through Credit
Cards, Debit Cards, and UPI platforms.
Manu Lavanya, Director and Chief Operations Officer, Max Life said, “At Max Life, we are committed to creating
robust customer journeys in the digital value chain. The 'Buy Now – Pay at Approval' feature attempts to simplify
policy buying through a digital payment instrument while avoiding the risk of money being withheld in the event of
a delay in policy issuance.”
“By extending the facility to wider modes of online transactions, we look forward to delivering hassle-free customer
experience and mitigating any negative impact likely to occur due to cancellations/underwriting concerns. Since the
introduction of this feature last year, we have seen an uplift in customer experience, with a reduction in grievance
and refund-related issues, that we aim to continue with the newer augmentations,” he added.

52 The Insurance Times, December 2021