Issues pertaining to issuance of Electronic Motor Policies

भारतीय बीमा विनियामक और विकास प्राधिकरण INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA

Ref: IRDA/INT/CIRC/INSRE/197/11/2015

Date: $6^{\text{th}}$ November, 2015

CIRCULAR

To All the IRs and General Insurers except ECGC, AIC, standalone health insurers and GIC Re

Re: Issues pertaining to issuance of Electronic Motor Policies.

1. Electronic Motor Insurance Policies: As a part of their digital initiative, the Govt of Telangana is agreeable to recognize the electronic version of Motor Insurance policies as evidence of insurance of vehicles. Issuance of electronic Motor policies can be seen in the light of cost efficiency, faster delivery of insurance policies and arresting fraud. It may be recalled that the Authority had already facilitated the issuance of insurance policies in electronic form by means of the "Revised guidelines on Insurance Repositories and electronic issuance of insurance policies" issued on $29^{\text{th}}$ May, 2015. The Authority in terms of the powers vested in it under section 14 (2) (e) of the IRDA Act, now advises that General Insurers, w.e.f. $1^{\text{st}}$ December 2015, issue all the Motor policies, particularly in the state of Telangana, in electronic form in addition to policy in physical form. However, in tune with the guidelines referred above, for electronic policies issued through the Insurance Repositories (IRs), issuance of a physical copy will not be required.

2. Quick Response (QR) Code: While the Motor Insurance policies are issued in electronic format, it is important to ensure that these provide the ease of verification for the enforcement agencies for which a QR Code shall be incorporated in the motor insurance policies by the Insurer/IR concerned. Further, even in respect of the physical motor insurance policies, it is advised that a QR Code be incorporated as a measure of additional security. This QR code could be incorporated alongside Form 51. In this context, it is also advised that

• (a) All Motor policies issued on or after $1^{\text{st}}$ of December, 2015 shall essentially contain a Quick Response Code (QR Code). This QR Code would be used to verify the authenticity of the electronic policy with the Insurer/IR concerned. As such, the QR Code shall facilitate scanning and retrieval of the policy should any user so desire to access the same through the internet.
• (b) It is further advised that insurers may set up a self-service portal for the benefit of existing policyholders whose policies do not have a QR code.
• (c) In case of existing motor insurance policies submitted for endorsements or modifications on or after $1^{\text{st}}$ December, 2015, such polices not having a QR code shall be issued an endorsement whether in electronic or physical form only along with a QR Code.
• (d) Insurer/IR shall also make available by $1^{\text{st}}$ January 2016, a mechanism by which a mobile version of an electronic policy be developed that should lend itself for download on the screen of any smart phone.
• (e) Issues pertaining to Electronic issuance: In order to facilitate issuance of Motor policies in electronic form, it is further informed that where an eIA (electronic insurance account) is required to be opened for issuance of a Motor policy in electronic form, the same can be done without insisting on the KYC requirements. Such eIA shall be currently identified as non-KYC compliant by the IR concerned. However, the IR concerned shall follow a KYC procedure in the immediate next instance should any such stipulation be made by the Authority.

This is issued with the approval of the Competent Authority.

Copy to: CEO, IIBI.

(Sriram Taranikanti) Executive Director.

परिश्रम भवन, तीसरा तल, बशीरबाग, हैदराबाद-500 004. भारत त : 91-040-2338 1100, फैक्स : 91-040-6682 3334 ई-मेल : irda@irda.gov.in वेब : www.irda.gov.in

Parisharam Bhavan, 3rd Floor, Basheer Bagh, Hyderabad-500 004. India. Ph.: 91-040-2338 1100, Fax: 91-040-6682 3334 E-mail : irda@irda.gov.in Web.: www.irda.gov.in

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