E-tailers may soon sell insurance

Insurance regulatory body, Irda, has come out with a draft regulation on selling insurance via e-commerce platforms to help increase insurance penetration and foster financial inclusion.

For consumers, this can translate into lower pricing of products over time, due to the lower cost incurred by the seller. Irda has suggested self-network platforms for online sales, which can be set up by insurers, intermediaries, agents and any other entity recognised by Irda. The option will be available as a regular website (desktop and mobile), or as a mobile app, or both, with the seller being responsible for servicing the product.

This move is aimed at lowering “the cost of transacting insurance business and bring higher efficiencies and greater reach”. However, Irda will consider the feedback from the concerned players and analyse the pros and cons before implementing the regulation. Meanwhile, as per a separate circular issued by Irda, insurers will now have to issue electronic policies along with physical forms for life and health, motor, personal accident and travel policies with annual premium of Rs 10,000 or more (Rs 5,000 for motor, personal accident and domestic travel) and a sum assured of Rs 10 lakh for pure term, Rs 5 lakh for health, and Rs 1 lakh for other life plans. The issuance will come into effect from 1 October, 2016.