Motor insurance policies in Telangana will now be issued electronically, Irdai has said.
The move is a step towards making it a hassle-free experience for vehicle owners and improving the compliance level.
"As part of digital initiative, all motor insurance policies, especially in Telangana, will be issued in the electronic form with a quick response (QR) code for ease of verification by enforcement agencies," the Insurance Regulatory and Development Authority of India (Irdai) said in a notification.
Insurance companies can issue the policy through their portals or tie up with insurance repositories.
An SMS will be sent to the registered mobile number of the policyholder on the issuance of the e-motor policy.
The state government, in collaboration with Irdai, the Insurance Information Bureau of India and the insurance industry, has decided to implement the policy from January 2.
"These policies can be issued online across the country, paving the way for a host of benefits like faster issuance, removal of fraud, higher customer satisfaction, elimination of revenue leakages, analytics and so on," Irdai said.
"The success of this initiative will go a long way in extension of this facility to the rest of the country," it added.
Telangana is the first state to formally recognise an electronic motor insurance policy.
Driving a motor vehicle without insurance is a punishable offence under the Motor Vehicle Act, 1988.
