News 112 views August 12, 2020

IRDA Guidelines- Term Insurance Authentication through Electronic Means

There are thousands of term insurance plans available online and you can either buy it from the seller’s website or by visiting the nearest branch. But for verification, it is mandatory to provide documents and sign the form while purchasing a term insurance plan. So, in order to make this process more convenient IRDA has introduced Term Insurance Authentication through Electronic means. In this rule, you can buy a term insurance plan from your known agent by just sitting at home through electronic means. You can fill up the insurance form, submit the documents, and even sign the form through an OTP received on your mobile phone. So, let’s explore the features of this new IRDA’s rule in detail.

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Features of IRDA’s Life Insurance Authentication Rule

  1. This rule has been implemented in order to avoid direct contact between the customer and agent during this pandemic.
  2. You can fill the Life Insurance Application Form Online through an OTP.
  3. Submission of documents required will also be done online.
  4. There is no need for the physical signatures because you can verify online.
  5. This rule is on an experimental basis and valid until the 31st of December 2020.
  6. This rule will be only applicable to the Term Insurance or Life Insurance Plans.

Why this Rule is implemented?

As we can see that the numbers of Covid-19 cases are increasing day by day and this disease is very contagious. Therefore, in order to avoid the direct contact IRDA has announced the verification of all the documents through electronic means. On the other hand, it is not safe to visit the insurer’s office and sign the documents of the term insurance policy. Although most of the insurance companies are trying their best to take the precautions but still there are some individuals who are afraid to step out of their homes. So, this rule has been brought into action by IRDA that can prevent the direct contact of the individual and insurance agent.

How this Rule will Work

Before the virus outbreak when everything was normal, the customer has to visit the branch to sign the form and submit the document. But now the insurance company will accept your term insurance application online with all the documents. Once all the formalities are completed, the company will send you the filled application form on your email ID with a validation link.

You can go through all the details of the form and rectify any information if it is entered wrongly. If you find everything fine in the form then you can click on the validation link sent with the mail. Once you click on the authentication link then it confirms that you have read all the details of the application form and you agree with it. There is no error in your insurance application form.

Conclusion

Now, with the help of this rule, you can authenticate the term insurance plans through electronic means without visiting the branch or signing a document. The authentication process is simple and once you authenticate the application form by clicking the link then the company tends to receive your consent regarding the insurance policy,

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