IRDAI allows life insurers to send policy in electronic format

The Insurance Regulatory and Development Authority of India (IRDAI) has allowed life insurers to issue policy bonds in electronic format during FY2020-21 owing to Covid-19 pandemic.

With life insurers expressing difficulty in printing and dispatching policy documents to policy-holders, the IRDAI has allowed them to issue these in digital format to the email address mentioned.

However, the life insurers can issue the policy in digital format only on express consent given by the policy-holder. If a policy-holder demands the document in physical format, the same has to be provided without any additional cost, the IRDAI said.

According to IRDAI, the freelook period will be 30 days in such cases and will be calculated from the date of policy-holder confirming the receipt of the document through calls or other means.

The return of the electronic policy document by mail by the policy-holder indicating cancellation of the policy shall be valid for freelook cancellation.

The IRDAI has also allowed life insurers to upload their regulatory documents and file a soft copy through email till March 31, 2021. The physical copies should be kept ready for filing when the regulator asks for the same.