Newsletter
NO ONLINE INSURANCE SALES IN NEAR FUTURE
The director of the DOI recently stated that at present, the only type of insurance business which can be conducted over computer networks is the already formalized, relatively simple mandatory third-party motor vehicle insurance, which can be conducted over the trade network. No other online insurance business is allowed for the time being because of the implications of Article 64 of the Insurance Law, which requires that an applicant for insurance respond truthfully to an insurer's written questions. However, at present it is permissible for insurers to present materials on the Internet introducing their prod-ucts, and they need not seek an approval from the DOI before doing so. But if insurers wish to sell insurance over the Internet, they must first apply with the DOI for authorization. To date, no in-surance company has so applied.
With the arrival of e-commerce, the DOI is con-sidering the issue of online insurance sales, and intends to set up a working group to study ways of utilizing the Internet to promote insurance business.