COVID-19 impact | Now buy health, auto insurance online: Check out the process and documents needed

Following the coronavirus pandemic, Insurance Regulatory and Development Authority of India (IRDAI), the country's insurance regulator , has allowed insurance companies to issue policies online.

According to a Livemint report, the entire process from filling in the application to the issuing of policy will be done digitally and customers are no longer required to produce any physical documents or hard copy of the policy or the application form.

According to the new rule, customers can purchase health insurance and miscellaneous insurances issued to individuals where the sum insured does not exceed five crores. It is also applicable for those applying for motor insurance, the report said.

Here's all you need to know about the new process:

• Insurers will send the policy document and a copy of the proposal form through digital means. This will be sent to the registered e-mail id or mobile number provided by the customer only on the specific consent provided by the policyholder.


• The policyholders will need to be informed through SMS that the policy document or copy of the proposal form have been sent to their e-mail id or any other digital or electronic mode.


• A proper mechanism must be put in place by insurers in order to ensure that the documents are sent to the right email address and phone number. This could include an acknowledgment that is appropriately obtained or auto-collected on delivery.


• When documents are forwarded by electronic means, the mechanism of policyholder having received the document or the electronic platform having delivered the documents shall be maintained. It shall be clearly informed to the policyholder that the date of delivery of the document is reckoned for the purpose of considering any applicable free look requests.


• Insurers are also required to record such acknowledgements for future use or  reference.


• The policy document should contain all details like the schedules, terms and conditions, benefits etc that are otherwise available in the physical document.


• Wherever policy documents could not be sent through electronic means due to any reasons, the insurance companies shall compulsorily forward the physical documents to the policyholders.

As for applications being made online... 

• The completed proposal form shall be sent to the prospect on his / her registered e-mail ID or mobile number by means of a message with a link, as the case may be.


• If the proposer wishes to give consent to the proposal, the same may be allowed by either providing a link for confirmation or through One Time Password (OTP) which is duly validated.


• Most importantly, insurers shall maintain verifiable, legally valid evidence for the proposer’s consent received for the fully completed proposal form.

It is important to note that IRDAI has said that the policy document sent electronically is as valid as the physical policy contract or document. In the case of the non-feasibility of the online process, the insurance companies shall compulsorily forward the physical documents to the policyholders.