Industry & Compliance

IRDAI OTP Rules for Insurance Apps

IRDAI OTP rules for insurance apps in India: digital onboarding, claims, nominee changes, e-policy issuance, and audit-grade record-keeping requirements.

5 May 20267 min read

StartMessaging Team

Engineering

IRDAI’s digital-self-service framework places OTP at the centre of customer authentication for insurance apps. Whether issuing a new policy or processing a claim, OTP gates the change and produces the audit trail.

Overview

  • Phone-OTP for digital onboarding.
  • Aadhaar-OTP for KYC.
  • Fresh OTP for policy modifications.
  • OTP-gated claims for low-value claims.

Digital Onboarding

IRDAI permits OTP-based digital onboarding for term, motor and health policies up to specified thresholds. Above threshold, video KYC is required.

Policy Modifications

  • Nominee change — fresh OTP, audited.
  • Sum-assured change — OTP + cooling-off period.
  • Address change — OTP + transactional confirmation SMS.
  • Bank account change — OTP + penny-drop verification.

Claims OTP Requirements

  • Low-value motor / health — OTP-only intimation.
  • High-value — OTP + document upload + video KYC.
  • Disbursement — bank-issued OTP + UTR confirmation SMS.

Audit Retention

Minimum 8 years post policy end. Retained per (policyId, event, OTPrequestId, timestamp, status).

FAQ

StartMessaging handles application OTP and confirmation SMS for insurance apps, separate from the UIDAI Aadhaar-OTP path.

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