Buying a digital policy? Share it with family for emergency purpose

They will need access to policy details in case of an eventuality

The Insurance Regulatory and Development Authority of India (IRDAI) has issued additional guidelines on the issuance of electronic policies (e-policies), exempting insurers from issuing a policy document or using a hard copy of the proposal form for all individual health insurance policies.

This is a timely move with Covid-19 infections still on the rise. Says Gurdeep Singh Batra, head-retail underwriting, Bajaj Allianz General Insurance: “Issuing of e-policies is definitely a positive step considering the current pandemic situation and the challenges in issuing physical policy documents or proposal forms.”
 

This move towards digitisation is expected to reduce the time required to issue policies. Transparency between the insurer and insured is likely to improve as all documents will be transacted and maintained online.

Through another circular, the regulator has extended this exemption to all motor policies, fire policies covering dwellings and/or contents issued to individuals, all package insurance policies issued to individuals (e.g. for dwellings), and all miscellaneous policies issued to individuals where the sum insured does not exceed Rs 5 crore.

Insurers may take time to adapt. Says Amit Chhabra, head — health business, Policybazaar: “Currently nobody likes to meet other people to do paperwork or sign papers. Many insurers have already digitised their processes while some have yet to do so.” According to Chhabra, many senior citizens are buying health insurance currently and the introduction of digital policies will help them especially.   

A digital policy is as valid as a physical one. But you can still ask for a physical document. Says Chhabra: “If the customer wants a physical policy, that option is still available.” Earlier, a wet-signature was required on the proposal form. Says Chhabra: “Now you can offer your consent digitally, via OTP verification.”

 

In digital policies, the free-look period will start from the date the policy arrives in your email. The exemption from issuing a physical policy is till March 31, 2021.

With things moving online and email, SMS, links, one-time password, being involved, basic cyber security hygiene must be maintained. Make sure the policy comes to you from the same domain that you paid the premium. Says Mayur Joshi, chief executive officer, Indiaforensic.com, a company engaged in the prevention, detection, and investigation of frauds: “Sometimes cybercriminals may send a document that resembles a policy document but is not the actual one. Once you have received the policy, check it and ensure it has been signed digitally by the proper authority.” Even if you make payments to an insurance agent, your phone number and email address must be registered with the insurer.

Don’t let your e-policy languish in your email forever. Says Pankaj Mathpal, founder and managing director, Optima Money Managers: “In case of a mishap, your family members will need access to the policy details. They may not be able to if it is in your email.” He further adds: “Take a printout and file it along with your other financial papers, or share your electronic policy with a family member via Google Drive.”