On 10th September 2017, Insurance Regulatory and Development Authority (IRDAI) announced usage of OTP (One Time Password) for opening e-Insurance Account (eIA) as an alternative to electronic signature, in New Delhi.
About the one-time password facility:
i.IRDAI said that in order to facilitate the opening of e-Insurance Account (eIA) through online or electronic means, the authority has permitted validation by One Time Password (OTP).
ii.The One time password (OTP) is generated by computer and sent on mobile phone/e-mail to authenticate a transaction.
iii. Now, e-signature of the e- insurance account (eIA) holder on the application form for opening the account is considered as a valid authentication.
vi.Also IRDAI has permitted the e-KYC (Know Your Customer)facility offered by UIDAI (Unique Identification Authority of India) which provides unique Aadhaar numbers.
v.Through e-KYC authentication facility, insurers can perform the verification of the clients.
vi.UIDAI provides biometric authentication of a person based on Aadhaar details.
vii. These efforts have been taken by the IRDAI as a part of improving insurance penetration.
viii. Also as part of its developmental mandate to reach the policyholders in a cost efficient manner IRDAI has taken a number of steps like including insurance e-commerce, maintenance of electronic records etc.
- Insurance Regulatory and Development Authority
- Headquarters – Hyderabad
- Chairman – Mr.T.S.Vijayan