Insurance Regulatory and Development Authority of India or IRDAI has given a green flag to the usage of One Time Password or OTP for the opening of an e-insurance account. This move aims to provide another option in place of electronic signatures.
One of IRDAI’s primary goals has been to look for ways to improve insurance penetration. IRDAI also has made provisions for insurers to use the e-KYC facility. e-KYC is a service initiated by Unique Identification Authority of India or UIDAI for providing customers with Aadhar numbers.
Apart from improving insurance penetration, IRDAI wants to curb the cost involved at various stages. It has taken up several steps to ensure the same, such as issuing of insurance policies in electronic format, e-commerce like insurance and the ability to store records in again electronic format.
As per the current guidelines, electronic signature provided by a customer on e-insurance is a valid form of authentication. Further, the insurers can verify the authenticity of customers using the e-KYC service provided by UIDAI.
UIDAI currently offers biometric details of individuals/customers with the help of the Aadhar number. The regulatory body has confirmed that they no longer are using the e-PAN services provided by NSDL.