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.

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