Business

Pay policy premium, get SMS

The Insurance Regulatory and Development Authority of India (IRDAI) has directed insurance companies to intimate policyholders immediately through text message (SMS) details of premium received.

Wherever mobile phone number is available in policy records, the receipt of premium should be immediately informed by the insurer to the policyholder by an automatic SMS generated by the system, the regulator said.

In case of new contracts, insurers should get details of the correct mobile phone number to ensure SMS is sent on receipt of premium.

All insurers ought to put in place systems and procedures to ensure policyholders get the intimation through text messages, IRDAI Chairman Subash C.Khuntia said in a circular.

Aimed at enhancing the policyholder protection and information, the guidelines will come into force on January 1, IRDAI said. The new directions follow the May 2015 guidelines framed by the regulator in which it had asked insurers to mandate the authorised agents or registered insurance intermediaries to issue acknowledgements immediately for the premium they collect. Insurers are accountable for such acknowledgements issued by the agents or intermediaries.

Welcoming the IRDAI directive on SMS intimation of premium received, General Insurance Agents’ Federation Integrated president Rapolu Sudhakar said it is bound to benefit customers, especially those who continue to make the payment in cash.

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Printable version | Apr 5, 2020 6:10:15 PM | https://www.thehindu.com/business/pay-policy-premium-get-sms/article25735907.ece

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