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The insurance sector should gear to match the current requirements of e-commerce and digital solutions, said TS Vijayan, Chairman of Insurance Regulatory and Development Authority of India.
Speaking at the formal launch of the e-Vahana Bima, electronic motor-insurance polices, here on Saturday, Vijayan said there was need for better recourse to digital solutions available in insurance industry.
The success of low-cost (premium) life and accident insurance polices launched by the Centre last year was an example of innovative schemes in insurance, he said. The Common Service Centres (CSC), which are selling low-cost insurance policies, and insurance repositories should be used more by the industry and people, he added.
Quick response codeUnder the e-Vahan Bima, electronic motor insurance polices are issued in digital form with Quick Response (QR) code. As these policies can be stored and accessed on smart phones, the process of verification will be easier for commuters as well as the police.
The initiative was a joint effort by IRDA, IT department, police and transport department of the Telangana government.
National planSriram Taranikanti, Executive Director, IRDA, told BusinessLine that the authority is working on rolling out this facility at the national level in a phased manner.
“While Telangana is the first State to accept e-motor insurance policies, the Ministry of Road Transport and Highways, Government of India, has agreed to share vehicle data with us. We are developing necessary protocols and modalities to do this,” he said.
The entire process data handling is being done by Insurance Information Bureau (IIB), an arm of IRDA. According to IIB CEO R Raghavan, the Bureau is working with Madhya Pradesh, Rajasthan, National Capital Region, Kerala and Karnataka for e-Vahana Bima.
“We are in the proof of concept stage in these States. We need to collaborate and coordinate with transport, IT and police departments in each of these States to roll this out. We expect to see some good progress by mid-2016,” he said.
There are about 12.5 crore vehicles in the country and 55 per cent of these do not have third-party insurance, according to official data.
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