The insurance regulatory authority of India has come out with a new plan to make it compulsory for insurance companies to have electronic plans if the policyholder exceeds a particular threshold for life, health and general products as well.
As per the draft proposal, electronic insurance will be compulsory if the sum insured for term life and general insurance policy is Rs 10 lakh or more, and in case of health Rs 5 lakh or above. For plans other than pure term, the threshold is Rs 1 lakh or Rs 10,000 single annual premium.
Under the amended Insurance Act, the insurance companies have the responsibility of providing electronic policies above the threshold fixed by the Irdai.
In view of the mandate under the Act, the regulator has proposed Irdai’s (Issuance of electronic insurance policy) Regulations, 2016 mandating electronic insurance policies beyond set sum insured or premium limit.
“Every insurer shall issue in electronic form insurance policies that fulfill the criteria … In terms of sum assured or premium. Electronic policies may be issued by the insurers either directly to the policyholders or through the registered Insurance Repositories,” the draft said.
In case the proposal is rejected the insurance companies will have to communicate that to the prospect through e-mail.