24-02-2021 | 14:59 PM
All Digital Insurance Policies to be issued via Digilocker
Context
The Insurance sector regulator IRDAI (Insurance Regulatory and Development Authority of India) in a Circular dated 9th February, 2021, has advised all Insurance companies to issue Digital Insurance Policies via DigiLocker.
Key Highlights
The IRDAI in Circular stated “in order to promote the adoption of Digilocker in the insurance sector, the Authority advises all insurers to enable their IT systems to interact with Digilocker facility to enable policyholders to use digilocker for preserving all their policy documents.”
The circular also mentioned that the insurers should inform their retail policy holders about Digilocker and how to use it.
The Digilocker team in NeGD (National e-Governance Division) under the Ministry of Electronics and Information Technology will provide necessary technical guidance and logistic support to facilitate adoption of Digilocker.
Digilocker is an initiative under the Digital India program by the Ministry of Electronics & Information Technology (MeitY) Government of India where citizens can get authentic documents/ certificates in digital format from original issuers of these certificates.
Digilocker aims at eliminating or reducing the use of physical documents and will enhance effectiveness of service delivery, making these hassle free and friendly for the citizens.
In the insurance sector, Digilocker will drive reduction in costs, elimination of customer complaints relating to non-delivery of policy copy, improved turnaround time of insurance services, faster claims processing and settlement, reduction in disputes, reduction in fraud and improvement in customer contactability.
It is expected that Digilocker will lead to better customer experience.
About Insurance Regulatory and Development Authority of India (IRDAI)
IRDAI is an autonomous and statutory body in India.
Insurance Regulatory Authority of India was established by the Insurance Regulatory and Development Authority Act, 1999. It is headquartered in Hyderabad, Telangana.
It is a 10-member body comprising a chairman, five full-time members and four part-time members.
The body does the task of regulating and promoting the insurance and reinsurance industries.
