LIC has decided to start Digital policies in the coming days and there will be no hard paper copy of the Insurance documents like Bond Paper. This is a good move as physical papers are easy to get damaged or lost due to various circumstances.

Your E-insurance policy details will be kept in Digital Account like Mutual Fund and Shares are kept in the Demat account through the repository.

Currently, IRDA has approved this 5 insurance repository (IR) in India:

  • NSDL Database Management
  • Central Insurance Repository
  • Karvy Insurance Repository
  • CAMS Repository Services
  • SHCIL Projects Ltd.

This insurance repository helps you buy and keep your policy in electronic form instead of physical form.

India First Insurance company started issuing a policy in electronic form in 2013 however only 2% of policies are currently in digital form.

While the digitized policy is not compulsory, but high-value policies will be mandatory to digitize. There will be Rs.500 to 900 annual fees for an electronic account and this will be borne by insurers.

Benefits of E-Insurance:

  • No headache of policy papers
  • keep track of all policies in one place
  • Hassle-free online premium payment

The digital initiative is recommended by IRDA and, we will see if other companies also adopt E-Policies. What’s your opinion on your E-insurance? Please share your views below:

48 thoughts on “E-Insurance”



  2. Good move by LIC. But extraordinary high annual charges. (Rs.500 to rs.900?)

    Already I have registered with LIC online portal and maintaining My Account. So all my policies i am maintaining and paying online. Digital receipt copies i am storing separately in my computer because in LIC portal, we can access to recent years receipt copies only. If the availability of this copies extended there is no need of new system and burden of bearing extra annual charges for maintenance. Now a days digitalization is happening every where with nominal fees. Please think and act smart in this competitive world. If you are imposing that much annual fees we don’t require your digitalization and further will not go for LIC insurance.

  3. A good move, if lic provides opportunity for any corrections in the E document ; change of term or plan etc in that e insurance would be more useful, than conventional agents system, try to eliminate or reduce agents also, make it every thing like maturity benefit, premium payable for a particular age, so that it would be transparent, otherwise agents lure the customer’s by showing miracles in sky

  4. Keshab Chandra Basak

    This is a very nice move by LIC to go for digital policy. At present the AMC will be borne by LIC. Should they pass on annual maintenance charges to the insured i.e. the policy holders in future ? or, LIC will enhance the load on policy, resulting policy holder will get less amount when claimed
    Moreover, it would be difficult for the nominee to know details about the policy.

    Suggestion: LIC may issue physical policy as per present practice and keep open the option to the policy holders to demataterialise as have been done in case of shares to policy holder’s sweet will.

    1. I agree with Mr.A Dutta. While the initiative is welcome the annual charges are exorbitant and not justified.

  5. Whether E-Insurance will be convenient or not “Future” will prove. But it can be told that if we keep safely Bank FD’s certificates, NSC certificates, PPF Pass Book, Deed Of Land or Flat and so many other important documents properly, why should we neglect the most important document “LIC Policy Bond” in physical manner ? Why should I pay Rs. 500/- to Rs. 900/- per annum ?

    We should keep in our mind that Mutual Documents are never be paralleled to the LIC Policy Bonds due to it’s great importance in different points of view.

  6. its a very good move and it will help to all as given below

    •No headache of policy papers
    •keep track of all policies in one place
    •Hassle free online premium payment

    but it should be maintained by your good office and work is in your control.

  7. Whether E-insurance is Good or Bad time will say. But it should be kept in mind that :-

    LIC Policy Bond in physical form is not only a most important document, it is almost like a “Deed” of Land / Flat / home or any kind like this which treated as Collateral Security by any bank or LIC at the time of taking different types of loan. So in that case it may create a major problem.

    There is some special types of LIC Policies which will be “in force” even after policy matures. In that case it will create different inconveniences to maintain proper record by policy holder in future.

    It is seen in real life, a person has taken several policies in favour of different members of his / her family in different LIC company, maintains proper records. May be there are some policies which are mortgaged to bank or any other financial institution. In that case this will creat many inconveniences to maintain proper record if there is no Hard Copy of Policy Bond.

    Nominee of a LIC policy holder may face problem in case of death claim of policy holder if there is no hard copy of Policy Bond. Nominee may not be able to find out how many LIC policy / policies had done by the Life Assured.

    Last of all I’ll conclude, if I keep the Deed of Land, Flat, Bank Fixed Deposit Certificate, NSC, PPF properly why should I neglect LIC Policy Bond ? We should have to keep in our mind that Mutual Fund, Share etc. is not parallel to LIC Policy because of it’s great importance.

  8. It is good move.
    Please save Paper! Save Trees! before printing, think about the environment.

  9. mangesh panchal

    It is very good,But can it is possible all policyholder is ready to open demat account and pay annual fees.

  10. It may look good,
    but all policy holders have access to computers & internet, Then it will be a burden for policy holders to pay annual fee for custodian. About password and ID, all cannot remember at all times.
    When a person buys new policy, how do he get information by SMS or by mail.
    Then he need to periodically visit the cyber cafe to check his transaction/policies in digital form with custodian. At rural places will it work, A lot to be thought in this context.

  11. LIC must & should try to send premium notices well in time. THis importnat aspect is being negelected by the LIC and causing harassmnet to the the people in rural areas.

  12. No doubt this is a good move, but friends be ready to get more fake calls, how? let me explain..
    these 5 insurance repository will get applications from Insurance companies and their agents (e.g. Al**kit)

    the form a customer needs to submit requires all major information personal, bank details and other insurance details. Please note Al**kit is also a corporate agent / broker in insurance.
    they are employing insurance agents to fill E-insurance applications. do u think they will be unbiased and will not use that information for tele-calling.

  13. Excellent move. This can be done only by LIC of India. Keep up your excellency in customer service

  14. It is a great idea and will be really helpful for the policy holders, mainly if an original policy is lost then to get a duplicate policy the process is very lengthy, So i think E-insurance will be very useful.

  15. It is a good thinking, I have five policy what about about the existing policy? Is it possible to enroll all the existing policy from various insurance including LIC. We are eagerly waiting for that.
    Thanking you

  16. This is a good initiative. Good for the environment. You say that “high value” policies will be mandatorily digitized. Pls clarify what is “high value”. If a policy holder has policies of 1 – 2 lacs, will these also be digitized? The annual charges should be less or be shared 50-50 by the holder and the LIC.

  17. Hassel free and costless to keep paper document but the cost of electronic system is too much per annum. It should be free as paper work is minimised.

  18. Link all the policies with aadhar card. So, that no need of number, user name and password remembrance.

  19. good couraging intiative for green environment, and head ache of original bonds safety thanks ..but
    it will be sign for indicate this is a one of the step to becoming a customer friendly,
    in future Aagie aagie dekhie hota hai kya. . .. . . . . .

  20. Good initiative. What about the existing policy .Is it possible to enroll all the existing policy from various insurance including LIC
    Dr pal

  21. Good initiative, charges are high to discourage greater participation. Can old policies be digitised?

  22. Great move to digitalise the LIC policy. My only concern is the online payment options should be more easy. Especially yet I have not figured out a way to pay monthly or quarterly premium through online website. Other than that it’s great move.


  23. This move “Digital” is good for LIC management team to maintain all data/ records and deals.
    Not necessary for ordinary or less educated people/ or not educated people.
    Physical paper gives feeling to poor people as they have some insurance money as property/safeguard. They cannot understand Digital email document.
    There are many changes there for hikers to steal data’s and change the date and make money by themselves.
    But you can implement digital documents/information along with hard paper works till all people get educated with email. It may take many years to completely depend on Digital.

    1. Good start,….der should be facility to pay premium quarterly online . digital policies
      Would not be comfortable to those who doesn’t have knowledge …
      .let’s see

  24. Its very good move by irda. Try to link it with any one bank account so that it will be easy to track Maturity or other claim related benefits.
    It could also control the demand of kyc/aml whenever anyone wants to purchase a new policy.

  25. If the policy holder forgot the password for the stored policy how can he get ,so,clarify

    1. what u do when u forgot your email account? its easy to reset your password after simple verification

    1. May I able to do e insurance policy without help of LIC Agent. That means will there be any Agent in e insurance like present offline policies ?

  26. Ramesh Jayaraman

    Yes, Truly a good initiative and highly approciated. This also supports Green environment which is a very good move. Keep it up.

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