Your Last Chance to Buy a Paperless Health Insurance Policy

October 13, 2021 Mutual Fund

The thought of going completely paperless in the past years would have surprised you. Going 100% paperless in healthcare may be a complicated process, but the experience is entirely different. The current COVID-19 pandemic has completely affected our day to day life and has also bought many challenges to public health. Many people are considering buying health insurance to cover themselves against any illnesses and diseases due to the pandemic. However, when the virus was spreading rapidly all over the country, people were not able to buy health insurance as the offline procedure involved a lot of paperwork. Taking the situation into account, the Insurance Regulatory and Development Authority of India (IRDAI) had allowed issuance of Paperless Health Insurance from 10th September 2020. The recent extension of the same was valid till 14th September 2021. However, as the government still needs to take precautionary measures to avoid public crowding, the IRDAI has extended the paperless health insurance issuance till 31st March 2022.

When did the Paperless Health Insurance Issuance start?

To buy any health insurance policy, one had to provide consent by signing a hard copy of the insurance policy and submit the self-attested necessary documents to the health insurance company. The entire process has become difficult to follow due to the lockdown restrictions and the necessity to maintain social distance. Therefore, the IRDAI had allowed the health insurance companies to issue the policies by following an online procedure that involves uploading of documents online, digital signature for the consent to policy, and online payment of the premium. Although the IRDAI had allowed paperless issuance of policy only till 31st March 2021, considering the steep rise in the COVID-19 cases, the regulator had extended the permission till 30th September 2021. However, as many states are still fighting against the virus, the IRDAI has further extended the issuance of paperless health insurance till 31st March 2022.

On 14th September 2021, the IRDAI released a circular that says, “In view of the continuing situation of COVID-19 pandemic, in partial modification of clause No. 5 of the within referred circular dated 10th September 2020 the timelines for (a) Issuance of electronic policies and (b) dispensing with physical signatures and wet signature on the proposal form in respect of health insurance policies, stand extended up to 31st March 2022”.

How does the Issuance of Paperless Health Insurance works?

Although the procedure of paperless health insurance purchase and issuance differ from insurer to insurer, here are some general steps that are similar with all the health insurance companies:

• It is advisable to do online research by checking and comparing the various insurance providers before purchasing the policy.

• Most insurers have premium calculators on their websites that can give you an idea of the exact premium you need to pay for a specific policy.

• Each insurance company offers multiple health insurance plans. You can go through various health insurance plans offered by the insurer and choose the most-suited plan for yourself and/or your family.

• If you are interested in buying a paperless health insurance policy from a particular insurer, you have to visit the official website of the insurance company and click on the 'Buy Now' tab.

• Select the appropriate policy and sufficient coverage.

• You will be asked to fill in your personal details, such as your full name, gender, date of birth, mobile number, email id, and address.

• Your account will be created once you authenticate your mobile number and email address by submitting the One-Time-Password (OTP).

• Your personal information will be saved in the insurance company's records, which will let you access your account anytime in the near future. You can log in to your account by entering an OTP on your registered mobile number or email address to buy a policy or check your existing policy details.

• When you proceed to buy, you will have to disclose certain details, such as your smoking habits, and pre-existing diseases, etc.

• Before proceeding with the payment, it is advisable to check all the policy details carefully and read the terms and conditions, list of exclusions, policy exemptions, etc.

• If you agree to all the terms and conditions, you can proceed to pay the premium. There can be several ways you can choose to pay from the available payment methods, such as debit/credit card, net banking, UPI, wallets, etc.

• Once the payment is done, you will receive a digital health insurance policy from the insurance company at your registered email address.

What are the benefits of a Paperless Health Insurance Policy?

• When it comes to an offline purchase, the policy comparison becomes a huge and tedious task as it is practically impossible to get policy details from each and every insurance company. Usually most people end up buying from the first insurer they visit. However, online health insurance has an abundance of choices. Since almost all the insurance companies are offering paperless health insurance policies, you have an option to compare them online with ease and convenience, thus helping you choose the right policy. There are many websites where you can easily compare the best policies that are available in the market.

• Most leading health insurance companies require you to undergo a pre-policy medical checkup if you are above a certain age limit. Although this practice is best for both parties, a pre-medical checkup is excluded from the paperless health insurance policy to avoid the spread of the Corona virus during the check-up.

• Traditional health insurance purchase requires a lot of paperwork and it is time-consuming. Whereas, your paperless health insurance does not require multiple visits to the insurance agent and the purchase process is easy and quick, which makes it a time-saving option.

• The online health insurance policy you choose is completely based on the comparison you do by yourself and the decision is not influenced by an insurance agent.

• You buy the policy based on the facts after reading the terms and conditions and other policy details. However, the offline purchase can be misleading as the insurance agent might not disclose the policy exclusions and exemptions.

• The online health insurance policy coverage starts at the moment you finish your purchase.

• You do not have to worry about the office timings and weekly or public holidays of the insurance company, as you can buy the policy anytime 24×7.

• As online issuance is a cost-effective method for the health insurance companies, they usually offer various discounts and offers when you buy a policy online.

To Conclude:

If you are planning to buy a health insurance policy or extending your health insurance policy coverage, it is advisable to buy health insurance online and now it is a good time as everything will be paperless till 31st March 2022. Buying the paperless health insurance policy is a completely hassle-free process as you can compare the different policies and buy it from the comfort of your home, the insurance cover starts immediately, and you receive a digital policy that you can have access to any time.

This article first appeared on PersonalFN here