Author: Abhinav ShalyaPublish Date: Mon, 12 Sep 2022 11:30 AM (IST)Updated Date: Mon, 12 Sep 2022 11:30 AM (IST)
New Delhi, Business Desk. The Insurance Regulatory and Development Authority of India (IRDAI) may make dematerialization mandatory for new insurance policies by the end of this year.
Dematerialization is the process in which all physical documents are converted into online or electronic format. EKYC can also play a big role in dematerialization of insurance policies, as it will help insurers to digitize insurance.
Insured will benefit
Vijay Gupta, Senior Vice President, NDML on Dematerialisation, says that the proposal has been made by IRDAI to make it easier to do business for the insurers and to ease the access and services of insurance for the policyholders, adding that the insurance companies It will be mandatory for all new insurance policies to be issued electronically through the Insurance Repository (IR) system.
What is Insurance Repository?
IR was set up under the Insurance Repository Regulation. Over the years, the Insurance Repository has managed to issue insurance, protect insurance policies and provide services to over one crore insureds. Electronic Insurance Account (EIA) of the insured is opened in the Insurance Repository, wherein all his/her insurance policies (life/non-life/group) are stored and the insured can access the insurance policies through the EIA facility at any time . This can also speed up claim settlement.
Gupta further said that the biggest benefit will be to the insured through EIA. With this help, the insured and their nominee can easily keep all the insurance policies digitally secure at one place. In addition, it will provide automatic insurance issuance and service related benefits to the customer. The Insurance Repository is managed by NSDL Database Management Limited (NDML), a subsidiary of the government company NSDL.
Edited By: Abhinav Shalya