IRDAI says all insurance policies can be digitised

Basic facilities for policyholder would be free, premier services to be charged

In its revised guidelines on insurance repositories and electronic insurance policies, Insurance Regulatory and Development Authority of India (IRDAI) has said that all insurance policies, be it life, general or health can be held in the digital formal.

IRDAI said that where a policyholder prefers a physical policy, the insurer has to issue both electronic as well as physical policy for these categories of policies. However, where a policyholder prefers an electronic policy, the insurer will have an option to either issue both physical and electronic policies or issue only an electronic version. However, if only an electronic policy is issued, it shall be only through the insurance repository.

The regulator said that a repository has to be offer basic services to policyholder including policy status, printing facility of copy of the policy, annual statements in electronic form and mini statement showing the basic details like name, contact details, policy plan, nominee details and payment terms among others.

Further, premier services can also be offered either on annual or per service basis. These include premium due calendar and online premium payment facilitation, premium history and claims history, acceptance of service requests for onward transmission to insurers and tracking system for service requests/grievances among others. These would also include SMS/email notification of survival benefit, premium due, maturity claim due among others.

In its earlier guidelines, IRDAI had only allowed life insurance policies to be digitised. However, now all policies can be digitised and customers may have the option to re-materialise the electronic policy into physical format.

An Insurance Repository (IR) is a facility to help policy holders buy and keep insurance policies in electronic form, rather than as a paper document.  These repositories, like share depositories or mutual fund transfer agencies, would hold electronic records of insurance policies issued to individuals. Such policies are called 'electronic policies' or 'e-Policies' held in an electronic insurance account.

If an insurer does not have any agreement with an IR, it has to issue an electronic form through its own portal and also through an email. The insurer shall also issue a physical copy in such a case. All insurers are required to tie-up with IRs if a policyholder only wants a policy in electronic format.

An e-insurance account can be opened by a person who has Insurance policies on his own or who proposes to take insurance policies. Further, it can also be opened for a minor by his legal and natural guardian, who proposes the life of minor for taking an insurance policy.  A request for opening of these accounts can be made to the IR directly or through insurers.

Here,  'Insurance Transactions Exchange' or 'iTrex' is a central index server that offers de-duplication services and acts as a messaging hub between entities creating eIAs, electronic policies and their servicing. For any query to i-Trex, a policyholder has to pay a transaction fee.