IRDA permits insurance repositories to maintain data in electronic form

You can now handle your insurance needs electronically, right from buying insurance, paying premiums to filing claims.

In its guidelines on insurance repositories and electronic issue of insurance policies announced on Friday, the Insurance Regulatory and Development Authority (IRDA) said all insurance policies in electronic format would now be treated as valid insurance contracts.

Further, it had also provided for the creation of Insurance Repositories for maintaining a data of insurance policies in electronic form on behalf of insurers including the history of transactions during the term of policy.

The objective

“The objective behind creation of insurance repositories is to provide policyholders a facility to keep insurance policies in electronic form and to undertake changes, modifications and revisions in the insurance policy with speed and accuracy,” Mr J. Hari Narayan, Chairman, IRDA said in a circular.

A publicly listed company registered under the Companies Act with a minimum share capital of Rs 5 lakh, public financial institutions, a wholly-owned subsidiary of an existing depository registered with the Securities and Exchange Board of India are among those who can act as an insurance depository.

The ‘e-insurance policies' would be issued and maintained by the insurers, it would be mandatory for them to utilise the services of an insurance repository registered with IRDA.

There would be no additional cost for a policyholder for opting for electronic policies, say the guidelines which come into immediate effect.

COMMENT NOW