{"id":4587,"date":"2020-10-06T15:08:19","date_gmt":"2020-10-06T15:08:19","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=4587"},"modified":"2025-09-17T07:07:45","modified_gmt":"2025-09-17T12:37:45","slug":"how-irdai-now-allows-end-to-end-digital-insurance-policy-dispensation","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/how-irdai-now-allows-end-to-end-digital-insurance-policy-dispensation","title":{"rendered":"How IRDAI Now Allows End-To-End Digital Insurance Policy Dispensation"},"content":{"rendered":"

Rapid digitization in the insurance sector<\/strong><\/span><\/h2>\n

Over the last month, IRDAI<\/a> has issued two circulars: one permitting video KYC<\/a><\/strong> for insurance onboarding and the other allowing insurers to issue electronic insurance<\/a> policies and obtain e-signatures from customers to consent to policy proposals.\u00a0<\/span><\/p>\n

These circulars have been met with much fanfare by insurers who have recognised the need for digital onboarding<\/a> <\/strong>during the COVID-19 pandemic, and the potential of digitized methods to cut KYC costs and provide insurance to customers quickly and safely.\u00a0<\/span><\/p>\n

However, what most people don\u2019t realize is that these circulars can be interpreted in conjunction with each other and the methods illustrated in each circular can be combined to create an end-to-end digital system to onboard customers<\/a>, send electronic policies, and obtain consent remotely.<\/b><\/span><\/p>\n

\"VBIP\"<\/p>\n

Implications of VBIP<\/a> and electronic policies<\/strong><\/span>\u00a0<\/span><\/h2>\n

IRDAI VBIP<\/strong><\/span><\/a> allows insurers to onboard customers using <\/span>video-based KYC<\/span><\/a><\/strong> methods, wherein the customer\u2019s KYC and identifying documents such as Aadhaar or any e-signed officially valid document (OVD) are verified by an official in a video interaction. The official additionally matches the customer\u2019s identity with the picture on the identifying documents to complete the onboarding process.\u00a0<\/span><\/span><\/p>\n

This entire process takes place online, on a suitably seamless and encrypted application.<\/span><\/p>\n

IRDAI\u2019s <\/span>second circular<\/span><\/a><\/strong> allows insurers to send electronic policies to customers (after obtaining consent to do the same), and obtain the customer\u2019s consent for these policies by electronically signing a digital proposal form.\u00a0<\/span><\/span><\/p>\n

Note here that these two processes are completely digital and hence can be combined into an end-to-end procedure simply by extending the scope of the application used for VBIP<\/a><\/strong> to accommodate digital documents and an eSign facility.\u00a0<\/span><\/p>\n

All this sounds good in theory, but how will such an end-to-end application work?<\/span><\/p>\n

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