Many people were finding it difficult to buy a new health insurance policy during the pandemic due to the lockdown restrictions. To overcome this hurdle in getting new policies, the insurance regulator had on September 10, 2020 allowed health and general insurers to obtain consent of policyholders through electronic or digital mode.
Initially, the relaxation of wet signature on the hard copy of the insurance policy was valid till March 31, 2021, however, in view of the second wave of the pandemic, IRDAI extended it till September 30, 2021. However, with the pandemic still prevalent in many parts of the country, Regular has extended the exemption till March 31, 2022.
IRDAI announced the latest extension through a circular on September 14, 2021. “In view of the continuing situation of the COVID-19 pandemic, in partial modification of clause no. 5 of the circular dated 10 September 2020 referred to in (a) electronic policy issuance and (b) physical signature on the proposal form in respect of health insurance policies and With wet signature, extended up to March 31, 2022,” the IRDAI circular stated.
Last year, the insurance regulator had laid down guidelines for issuing health insurance policies without wet signature on the hard copy of the proposal form. It mandated insurers to send policy documents and proposal forms through digital/electronic mode on the registered email ID or mobile number of the customer. Insurance companies were also directed to notify the customer simultaneously through SMS about the dispatch of policy and proposal form through digital/electronic mode by IRDAI.
In order to obtain consent from potential customers, the insurance regulator allowed insurers to obtain it through digital or electronic mode. If the proposer agrees, he/she has to give his/her consent by following the link or by confirming the same through One Time Password (OTP).