Philippine Insurance Commission allows use of e-vouchers purchased from online-selling platforms as digital payment for insurance policy
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Philippine Insurance Commission issued Ruling No. 2021-04 on August 6, 2021, allowing Pru Life Insurance Corporation of U.K. (Pru Life UK) to use e-vouchers as digital payment for individual life insurance policies.
In the proposed payment scheme, the e-vouchers, which are transferable, may be purchased from Shopee, Lazada, and other online-selling platforms. The bearer of the e-vouchers may then redeem and use them as payment for the insurance policy through Pru Like UK’s microsite. After redemption, Pru Like UK will send the policy and other related documents to the bearer via email.
The Commission allowed the use of e-vouchers as these are similar to electronic gifts, which is recognized under Circular Letter No. 2020-70 as a valid form of digital payment. The Commission however warns that the value of the e-vouchers must be equal to the amount paid for them through the online-selling platforms. Otherwise, this will amount to discounting or rebating, which is not allowed under Section 370 of the Insurance Code.
The full Ruling may be accessed here.