Source : Insurance Regulatory and Development Authority of India
Consequent upon promulgation of Insurance Laws (Amendment) Act, 2015 a new section in the Insurance Act, 1938 has been incorporated which reads as under-
Section 14(2) of the Insurance Act, 1938, has given the provision that “Every insurer shall, in respect of all business transacted by him, endeavour to issue policies above a specified threshold in terms of sum assured and premium in electronic form, in the manner and form to be specified by the regulations made under this Act”
In this context, it may be noted that the Authority had issued the“Revised Guidelines on Insurance Repositories and electronic issuance of Insurance policies” vide reference no. IRDA/INT/GDL/INSRE/111/05/2015 dated 29th May, 2015. It may also be noted that in view of revised provisions of Section 14(1) of the Insurance Act, 1938, the Authority had issued IRDAI (Maintenance of Insurance Records) Regulations, 2015 on 12th August, 2015.
Under Section 14(2) of the Insurance Act, 1938 the Insurers have the responsibility of issuing electronic policies above the threshold fixed by the Authority through Regulations issued in this behalf.
Now, in view of the mandate under Section14 (2) of the Insurance Act, 1938, it is proposed to issue IRDAI’s (Issuance of electronic insurance policy) Regulations, 2016. The salient features of the same as under-
· Definition of e-insurance policy, e-proposal and eIA.
· Creation of an e-proposal form similar to the physical proposal form.
· Modalities of issuance of e-insurance policies.
· Mandating issuance of electronic insurance policies beyond stipulated sum insured or premium limit.
· Provision to offer Discount in premium rates for electronic policies
· Conversion of existing policies to electronic form
· Recognition for special need of electronic insurance policies for vulnerable areas & zones.
The draft regulations along with schedules are attached with this document and the same are uploaded on IRDAI website for seeking comments/suggestions/views from all stakeholders for consideration of the Authority before the notification. The comments/suggestions should reach by 26th February, 2016 in the format attached as Annexure-1, to the undersigned by e-mail or to Shri Sanjay Kumar Verma at sanjay [at] irda [dot] gov [dot] in
Sr. JD (Intermediaries)
randip [at] irda [dot] gov [dot] in