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: