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Per Section 14(2) of the Insurance Act 1938, every insurer shall endeavour to issue policies above a specified threshold of sum assured and premium in:
A{'text': 'Electronic form, in the manner specified by regulations', 'letter': 'A'}
B{'text': 'Print form only', 'letter': 'B'}
C{'text': 'Bilingual format', 'letter': 'C'}
D{'text': 'QR-coded form only', 'letter': 'D'}
Answer & Solution
Correct answer: A. {'text': 'Electronic form, in the manner specified by regulations', 'letter': 'A'}
1. Section 14(2) modernises policy issuance.
2. It targets higher-value policies for digitisation.
3. Every insurer shall ... endeavour to issue policies above a specified threshold in terms of sum assured and premium in electronic form.
_Source: Insurance Act 1938 (incorporating amendments till 2021), noc.irdai.gov.in — "Every insurer shall, in respect of all business transacted by him, endeavour to issue policies above a specified threshold in terms of sum assured and premium in electronic form, in the manner and form to be specified by the regulations"_