Irda allows e-payment for life insurance customers
It is now official ePayment as a valid English Word, has been adopted by IRDA(Insurance Regulatory and Development Authority).
IRDA vide its Lr.dt.07/07/2009, to all CEO’s of Life Insurance Companies, has allowed Life Insurance Companies to , to remit payments to all policyholders and beneficiaries through electronic payment methods such as ECS, NEFT Systems as approved by the Reserve Bank of India.
The complete letter can be accessed at
http://docs.google.com/gview?a=v&q=cache:aI1HRd2OeIYJ:www.irdaindia.org/lifecirculars/E-payment-CIR090709.pdf+irda%2Bepayment&hl=en&gl=in
IRDA has taken a positive step towards popularizing ePayments, and the adoption of ePayments by Life Insurance Companies, will raise the confidence level of the general public in ePayments.
I believe that this is only the beginning and in near future IRDA will make it mandatory to remit the following payments through ePayment Mode only:-
01) Commission to Agents.
02) Payments to Vendors.
03) Payments to Surveyors.
In fact, Commission to Agents/Payments to Surveyors by both Life and Non-Life Insurance Companies can directly be shifted to ePayments. The information required for ePayment is very easily available and as Agents/Surveyors are always in touch with the Insurance Companies, this information can effortlessly be collected.
Information required for a successful ePayment Transaction
a) Beneficiary Name as per Bank Records.
b) Beneficiary Bank Account Number.
c) Beneficiary Bank IFSC Code.
d) Beneficiary Bank Name.
ePayment volumes will rise substantially, if Insurance Companies are persuaded to shift majority of their payments from paper mode to E Mode.
Technology at the Insurance companies and the Banks is in place, only what is required is a small push from the Regulator i.e IRDA.
IRDA vide its Lr.dt.07/07/2009, to all CEO’s of Life Insurance Companies, has allowed Life Insurance Companies to , to remit payments to all policyholders and beneficiaries through electronic payment methods such as ECS, NEFT Systems as approved by the Reserve Bank of India.
The complete letter can be accessed at
http://docs.google.com/gview?a=v&q=cache:aI1HRd2OeIYJ:www.irdaindia.org/lifecirculars/E-payment-CIR090709.pdf+irda%2Bepayment&hl=en&gl=in
IRDA has taken a positive step towards popularizing ePayments, and the adoption of ePayments by Life Insurance Companies, will raise the confidence level of the general public in ePayments.
I believe that this is only the beginning and in near future IRDA will make it mandatory to remit the following payments through ePayment Mode only:-
01) Commission to Agents.
02) Payments to Vendors.
03) Payments to Surveyors.
In fact, Commission to Agents/Payments to Surveyors by both Life and Non-Life Insurance Companies can directly be shifted to ePayments. The information required for ePayment is very easily available and as Agents/Surveyors are always in touch with the Insurance Companies, this information can effortlessly be collected.
Information required for a successful ePayment Transaction
a) Beneficiary Name as per Bank Records.
b) Beneficiary Bank Account Number.
c) Beneficiary Bank IFSC Code.
d) Beneficiary Bank Name.
ePayment volumes will rise substantially, if Insurance Companies are persuaded to shift majority of their payments from paper mode to E Mode.
Technology at the Insurance companies and the Banks is in place, only what is required is a small push from the Regulator i.e IRDA.
