INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Ref: Life/e-Insurance Policies/2022 | Date : 29/09/2022
Exposure Draft – Insurance Regulatory and Development Authority of India (Issuance of e-Insurance Policies) Regulations, 2022.
1. To promote efficiency in the conduct of insurance business and provide for appropriate framework for electronic mode of solicitation and servicing of insurance policies, the current regulations on issuance of e-Insurance policies have been reviewed. Some of the key changes being proposed in the regulations are: –
a. solicitation and servicing of insurance business through electronic platform.
b. to issue e-insurance policies for all modes of solicitation.
c. mandatory use of electronic insurance account for holding e-insurance policies.
2. The exposure draft of IRDAI (Issuance of e-insurance Policies) Regulations, 2022, is attached as (Annexure-A).
3. All the stakeholders are requested to forward their comments / suggestions, if any, on the proposed regulations in the attached format (Annexure- B) on or before 5:00 PM on 20th October, 2022 to life@irdai.gov.in
Annexure-A
INSURANCE REGULATORY AND
DEVELOPMENT AUTHORITY OF INDIA
NOTIFICATION
Hyderabad, the, 2022
Insurance Regulatory and Development Authority of India (Issuance of e-Insurance Policies) Regulations, 2022
F.No. IRDAI/Reg/2022 – In exercise of the powers conferred by sub section (2) of section 14 read with clause (gb) of sub section 2 of section 114A of the Insurance Act, 1938 and subsection (1) of Section 26 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), the Insurance Regulatory and Development Authority of India, hereby makes the following Regulations for Issuance of electronic policy and submission of electronic proposal form of insurance policies:
Objective:
To promote efficiency in the conduct of insurance business by enabling the insurers to establish an appropriate framework by adopting technology to build capabilities
a. for solicitation of insurance business through electronic platform.
b. to issue e-insurance policies procured either through electronic platform or otherwise.
c. to mandate the use of electronic insurance account for holding e-insurance policies.
CHAPTER I
Preliminary
1. Short title and commencement
(i) These Regulations may be called the Insurance Regulatory and Development Authority of India (Issuance of e-insurance policies) Regulations, 2022.
(ii) These Regulations shall come into force on the date of their publication in the official Gazette.
2. Definitions
In these regulations, unless the context otherwise requires: –
(i) “Act” means the Insurance Act, 1938 (4 of 1938) as amended from time to time;
(ii) “Authority” means the Insurance Regulatory and Development Authority of India established under the provisions of Section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);
(iii) “e-Insurance Account” or “eIA” means an electronic insurance account opened with any one of the insurance repositories for maintaining insurance policies issued in electronic form;
(iv) “Insurance Repository” or “IR” means a company incorporated under the Companies Act, 2013 or any other entity, which has been granted a certificate of registration by the Authority for maintaining data of insurance policies in electronic form on behalf of the Insurers;
(v) “e-proposal” or “electronic proposal” means a proposal form for an insurance policy filed in electronic form and the consent of the prospect obtained in accordance with the Regulation 3;
(vi) “e-signature or electronic signature” shall have the same meaning as specified in the Information Technology Act, 2000 as amended from time to time;
(vii) “Digital Signature” shall have the same meaning as specified in the Information Technology Act, 2000 as amended from time to time;
(viii) “e-insurance policy” or electronic insurance policy” shall mean a digitally signed policy document evidencing the insurance contract issued to the policyholder by an insurer in an electronic form through the registered Insurance repository;
(ix) “Electronic Platform” means a platform set up in compliance with IRDAI’s guidelines issued from time to time for soliciting and servicing insurance policies through electronic mode;
(x) “Regional Languages” means scheduled languages as per the Eighth Schedule to the Constitution of India;
(xi) All words and expressions used herein and not defined in these Regulations but defined in the Insurance Act, 1938(4 of 1938), or in the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) or Rules or Regulations made thereunder shall have the same meaning respectively assigned to them in those Acts, Rules or Regulations.
CHAPTER II
e- Proposal Form, issuance of Electronic Insurance Account and issuance of e-insurance policy
1. The prospect purchasing insurance policy must have the option to buy either
a. by submitting completed physical proposal form or
b. through electronic platform, where e-proposal form is electronically filled-in and the consent of the prospect is obtained in accordance with the Regulation 3.
2. Every insurer soliciting insurance business through electronic mode either directly or through the insurance intermediaries shall have in place an e-proposal form consistent with the physical proposal form, with respect to the product being solicited. E-proposal form shall also include the suitability assessment form, customized benefit illustration, as per the extant provisions applicable.
3. E-proposal form, submitted by the prospect through the electronic platform, shall be valid only if it carries digital signature of the prospect or an authorized electronic signature through an Aadhaar based one-time password to affirm or confirm the details. In case the prospect is not willing to verify through the one-time password, either video or audio verification of confirmation method may be used.
4. In case the proposal is being solicited through an insurance agent or insurance intermediary, it shall be mandatory for such insurance agent or the insurance intermediary, as applicable, to authenticate the submissions through respective digital signature or electronic signature.
5. The e-Proposal procured directly or through the insurance intermediary shall be allowed only through the electronic platform. In case of solicitation of business other than through electronic platform, every insurer shall establish systems in place to capture or transpose the information submitted through the physical proposal to electronic form.
6. Every insurer shall put in place all systems, processes and procedures to ensure that the electronic platform, used to solicit insurance business, shall provide seamless experience and enable:
a. Capture of prospect’s information on the e-proposal.
b. Collection of premiums directly into the bank account of the insurer through online recognized payment gateways of the insurer.
c. Capture of payment details and link it to the proposal submitted.
d. Completion of the underwriting of the proposal for insurance.
e. Issuance of the e-insurance policy document.
f. Periodic forwarding of auto generated renewal notice to the policyholders, indicating the renewal date and the applicable grace period, if any.
g. Collection of renewal premium directly into the bank account of the insurer through online recognized payment gateways of the insurer.
h. Subsequent policy servicing requirements, if any.
i. Claims servicing through electronic mode.
7. The electronic platform shall provide for detailed step by step process for each of the functions in Regional, Hindi and English languages, to enable the prospect, the policyholders and the beneficiaries, as applicable, to utilize the services without any difficulty.
8. Electronic insurance account (eIA) shall be mandatory for every policyholder and all policies issued to the policyholder shall be held in the eIA of the policyholder.
9. Every insurer shall put in place a mechanism to create an unique eIA number for each policyholder through any one of the registered Insurance Repositories as opted by the policyholder. Once an eIA is created, it must be used by all the insurers without creating another eIA, subject to Regulation 10.
10. (a) The e-Proposal form shall have a provision to capture the existing electronic Insurance Account (eIA) number of the prospect along with the respective Insurance Repository name. If the prospect already has a eIA, the insurer need not create a new eIA. However, if a written request is made by the prospect to create a new eIA, insurer shall port the existing eIA to another registered Insurance Repository as per the guidelines issued from time to time.
(b) If the prospects don’t hold an eIA, the insurer shall create a new eIA. On creating the eIA, the Insurer shall communicate to the prospect through registered email id, where available, and SMS of the mobile number of the prospect, informing creation of the eIA, purpose of eIA, step by step process on how to use the eIA in the Regional, Hindi and English languages.
Issuance of electronic Insurance Policies
11. Every insurer shall issue all insurance policies only in the electronic form notwithstanding whether the proposal is received in electronic form or otherwise.
Provided that the Authority, on being satisfied that it is in the interest of policyholders and for orderly growth of insurance industry, allow such exemptions to issue in physical form.
Provided further that such exemptions may stipulate conditions specified to be fulfilled by the Insurer.
12. All electronic insurance policies issued by the insurers shall be held in the respective eIA of the policyholder. In all such cases, copies of the proposal form, Benefit Illustration and all other relevant documents such as key feature document or customer information sheet shall also be issued to eIA.
13. Every insurer shall forward a copy of the e-insurance policy along with proposal form, benefit illustration, and other relevant documents to the registered email of the policyholder, wherever available.
14. Every insurer shall, on issuance of electronic policies to the eIA, communicate to the policyholder through the registered email id of the policyholder, where available, and SMS to the mobile number of the policyholder informing, issuance of electronic policy and copies of proposal form to the eIA and also draw attention to the provisions of free look period in the respective Regional, Hindi and English languages. Instructions shall also include the procedure to be followed to use the eIA and to take print outs.
15. Every insurer shall put in place a mechanism to display prominently in their respective websites, information about the purpose of eIA, procedure for use of eIA, issuance of electronic policies and free look provisions. Every insurer shall also put in place a mechanism for validation checks, deduplication measures and necessary safeguard measures within the system, to ensure that the mobile numbers and the email ids captured belong to the policyholder only.
16. In the event of a claim, the insurer shall call from the Insurance Repository, details of the electronic Insurance Policy maintained in the policyholder’s eIA and process the claim.
17. Electronic Insurance Policies shall be deemed valid only when issued with digital signature in accordance with applicable provisions prescribed by law.
Miscellaneous
18. Discount on electronic insurance policies – An insurer shall offer discount in the premium rates to the policyholders, if purchased directly through the electronic platform. Such discount shall be in accordance with the discount rates filed under respective File & Use guidelines or as specified by the Authority.
19. Existing policies – Every insurer shall provide the existing policyholder the facility of electronic insurance policy. All the existing policies shall be issued to the Insurance Repositories within 12 months from the effective date of this regulations, and inform policyholders as per Regulation 14.
20. Power of the Authority to issue clarifications etc.
In order to remove any difficulties in application or interpretation of any of the provisions of these Regulations, the Chairperson of the Authority may issue clarifications, directions and guidelines in the form of circulars/guidelines.
21. Repeal and Savings
a. Insurance Regulatory and Development Authority of India (Issuance of E Policies) Regulations, 2016 shall be repealed from the date these Regulations come into force.
b. Unless otherwise provided by these Regulations, anything done or any action taken or purported to have been done or taken in respect of the Regulations mentioned in sub regulation (1) shall be deemed to have been done or taken under the corresponding provisions of these regulations.
Annexure B
Suggestions on the proposed IRDAI (Issuance of e-Insurance Policies) Regulations, 2022
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