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The Insurance Regulatory and Development Authority (IRDA) is all set to launch a pilot on life insurance repository (IR) system.
This is meant for keeping/storing a policy in digitised/de-materialised form to be able access as and when required.
The two-month pilot would be started with effect from July 1, 2014 and it shall be mandatory of all life-insurers and existing five insurance repositories (IR) to participate in the programme, IRDA said in a circular issued here on Tuesday.
``During the Pilot launch, each Life insurer shall convert a minimum of 1,000 or 5% of the existing individual policies (issued in hard form and currently in force) whichever is less for each of the IRs into electronic form. This shall be however subject to a minimum of 250 policies per IR,’’ IRDA said.
Each Life insurer shall also issue a minimum of 1,000 or 5% of the total individual policies issued during the launch period whichever is lower in electronic form for each of the IRs. This too shall be however subject to a minimum of 250 policies per IR.
For the policies converted/issued in electronic form, within an e-Insurance Account, the IR shall be responsible for providing the mandatory information such as policy status, history, premium dues with facility to print/download wherever necessary.
In July 2013, the Authority had granted certificates of registration to five entities to act as insurance repositories.
After the IRs have become operational, several teething issues with respect to the function of the IR system, processes, security and price related concerns have come to the notice of the Authority.
With a view to resolve the concerns, IRDA constituted two sub committees to examine and devise simplified processes and a secured Insurance Repository System. The reports submitted by these committees to the Authority include several recommendations on the processes and the security framework of the IR system.
The Authority would review these recommendations and issue revised guidelines, soon, it added.
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