LIC has decided to start Digital policies in 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 Demat account through repository.
Currently, IRDA has approved these 5 insurance repository (IR) in India:
- NSDL Database Management
- Central Insurance Repository
- Karvy Insurance Repository
- CAMS Repository Services
- SHCIL Projects Ltd.
These insurance repository helps you buy and keep your policy in electronic form instead of physical form.
India First Insurance company started issuing policy in electronic form in 2013 however only 2% policies are currently in digital form.
While digitized policy is not compulsory, but high value policies will be mandatory to digitized. There will be Rs.500 to 900 annual fees for electronic account and this will be born 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. Whats your opinion on your E-insurance? Please share your views below: