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Certificate of Insurance rules in India 2021: New life, health or motor insurance policy? If physical certificate is mandatory or not in 2021

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Certificate of Insurance rules in India 2021: Replying to a question on whether or not the Government is contemplating offering e-insurance certificates as a substitute of issuing insurance Bonds, Union Minister of State for Finance Anurag Thakur not too long ago knowledgeable Rajya Sabha that the insurer has to situation each physical and digital insurance certificates to policyholders as per IRDAI rules. However, because of the COVID-19 pandemic, insurers had been allowed to situation digital coverage paperwork solely until March 31, 2021, as an interim measure.

From April 1 onwards, the insurance firms must ship insurance insurance policies in physical type to policyholders, relying on the consent of the policyholder.



“The Insurance Regulatory and Development Authority of India (IRDAI) has informed that regulation 4 of IRDAI (issuance of e-insurance policies) Regulations, 2016 stipulates that every insurer shall issue electronic Insurance policy based on specified premium or sum insured. However, these electronic policies are also required to be issued in physical form as well, except when these are issued through registered insurance repositories,” stated Thakur.

“Recently, in view of the COVID-19 pandemic as a special case, IRDAI has allowed insurers to issue only electronic policy documents and exempted them from the requirement of sending insurance policies in physical form till 31st March 2021, subject to the consent of the policyholder. The exemption provided by IRDAI is an interim measure due to the COVID-19 pandemic,” he added.

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In the context of Thakur’s assertion in the Rajya Sabha on the issuance of insurance certificates to policyholders, right here’s a deep dive into the precise IRDAI rules in this regard.

What is the certificate of insurance?

A certificate of insurance (COI) is issued by an insurance company and verifies the existence of an insurance coverage. It is very important that the shopper checks the coverage protection dates and the bounds of the coverage. Certificates of insurance comprise separate sections for various sorts of legal responsibility coverages.

What are the IRDAI rules for issuing insurance certificates to the insured?

Neeraj Prakash, Managing Director, Shriram General Insurance, informed FE Online, “Regulation No. 4 (iii) of the IRDAI (Issuance of e-Insurance Policies) Regulations, 2016 provides that all policies issued in electronic form by the Insurer directly to the policyholder shall also be issued in physical form. In all such cases, copies of the proposal form, etc shall also be sent in physical form.”

Casparus Kromhout, MD & CEO, Shriram Life Insurance, says the certificate of insurance is wanted in group insurance circumstances.

“Group insurance is an insurance policy that is taken by a pre-defined group of people that have come together with a common purpose and a common economic activity. In these cases the insurance contract is between the Insurance Company and the Group; and a master policy is issued to the manager of the group and will be in the name of the group. Thus individual policy documents are not issued for the group members; but in lieu of that IRDAI specifies that the Insurer should issue insurance certificates or Certificates of insurance (CoI) to the group members in case of a non-employer-employee group policy,” the Shriram Life Insurance CEO informed FE Online.

“These certificates contain the benefits of the insurance cover provided along with the terms and conditions. The certificates are also required to contain the procedure to file for a claim if needed and the contact details of the insurer,” he added.

Can an insurance certificate be issued on-line solely?

Certificate of Insurance could be issued in the Physical or a web based format. They must be supplied to the Master Policy Holder (the supervisor of the group) and are distributed by them to the group member, stated Casparus Kromhout.

Neeraj Prakash stated that principally Policy/Certificate is issued on-line to facilitate the insured for any urgency, with the comfort of offering arduous copy of the doc. However, Electronic Insurance Policies are issued with digital signature in accordance with relevant provisions prescribed by legislation. “Wherever policyholders demand the physical version of the policy document, the same is made available. And wherever it is not possible to send the policy documents through electronic means due to any reason, there also insurers necessarily forward the physical documents to the policyholders,” he stated.

Is it obligatory for firms to situation physical in addition to on-line insurance certificates?

The physical type of the digital Insurance Policy is a duplicate of the digital type. According to Prakash, the physical model of the digital insurance insurance policies want not be issued when digital insurance insurance policies are issued by means of the platform of registered Insurance Repositories. Similarly, copies of the proposal type and many others are additionally despatched in digital type to the insured along-with digital insurance insurance policies. Electronic insurance coverage is issued by the Insurers both on to the policyholders or by means of the registered Insurance Repositories.

Recently in the wake of Covid-19 pandemic, the Regulator granted the exemption to insurers from the requirement of (a) issuing coverage paperwork and (b) copy of the proposal in physical type in sure circumstances. However, as per Rule 141 of Central Motor Vehicle Rules 1989, a certificate of Insurance is to be issued solely in Form 51. It is solely in Motor Vehicle Insurance, aside from the coverage, {that a} separate certificate of insurance is required to be issued by insurers. This doc is all the time required to be carried in the car.

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