Paperless insurance soon as Irda asks insurers to tie-up with all repositories

Following the launch of insurance repository system last year, the Insurance Regulatory and Development Authority (IRDA) has asked insurers to tie-up with all repositories so that policyholders can maintain their policy in digital form.

The move will make the procedure more customer-friendly as it is easier to convert the policy into digital form at the point of purchase, then doing it later through a repository.

Currently, it is not mandatory for insurers to tie-up with all repositories; as a result paperless insurance has not yet taken off in the country.

According to Vikas Gujral, Executive Vice President & Head-customer service and operations, Max Life, "If the premium is above a certain amount it will be mandatory to issue digital policies to policyholders. Earlier the deadline of 1 July, 2014 was communicated by IRDA, but, we are still waiting for an official statement."

S.V. Ramanan, chief executive officer, CAMS Insurance Repository and Services, says, "IRDA set up a committee in March 2014 for the review of e-insurance guidelines. The Committee has gone ahead and submitted its recommendations. Based on the modified guidelines, the goal is given to insurers for compulsory conversion of policies into digital form. They have also been asked to tie-up with all repositories."

IRDA has licensed five companies to act as repository - NSDL Database Management, Central Insurance Repository, SHCIL Projects, Karvy Insurance Repository and CAMS Repository Services.

A policyholder can convert his or her policy in electronic form by submitting the form directly to an insurance repository or by sending it through an insurance company. A unique number is assigned to every policyholder and all details, such as, claim history, nominees, are stored under the number.