Insurance Regulatory and Development Authority (Irda) announced the guidelines for electronic issuance of insurance policy and insurance repositories.
Irda in its statement said, an insurance repository would facilitate policyholders to keep insurance policies in electronic form and to undertake changes, modifications and revisions in the insurance policy with speed and accuracy.
As per the guidelines the new policyholder will now have the option to request for online insurance policy from the insurance company. While the existing policyholders may approach their insurers along with identity proof, address proof to open an e-insurance account with an insurance repository. The e-insurance account with unique number will act as a portfolio of insurance policies. Both life and non-life insurance policies of a policyholder will be held in an electronic form.
Insurers providing the einsurance policies must now do so by utilising the services of an insurance repository certified by Irda and all such insurance policies in electronic form shall be treated as valid insurance contracts.
The insurance repository's task will be to maintain database of insurance policies in electronic form on behalf of insurers including the claims history and records of nominees and beneficiaries of a life insurance policy.
"However, the success of the system will vastly depend on the data protection capability of the insurance repository service providers," said Suresh Sethi, vice-president of Insurance Foundation of India.
