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: