SMS must be sent on receipt of premium by the Insurer

On the issue of acknowledgements on collection of premiums, in order to enhance the policyholder protection and information, the Insurance Regulatory and Development Authority of India effective from 1^st January 2019 has made mandatory for all insurers to “Wherever the mobile phone number of the policyholder is available in policy records with the Insurer, the receipt of premium by the Insurer under a policy shall be immediately informed to the concerned policyholder on his mobile phone number by an automatic SMS generated by the system. In case of new contracts, it may be ensured that the correct mobile phone number is captured to ensure SMS is sent on receipt of premium by the Insurer.”

It means every Customers of insurance whether New or Existing will get information by sms at the time of receipt generation. It will make transparency between customers and insurance companies. This is the welcome move by the insurance regulatory and development authority of India and also in the interest of policy holders. Some insurance companies already sending sms to all their customers at the time of receipt issuance.