The Insurance Regulatory and Development Authority of India (IRDAI) has mandated dematerialisation of new insurance policies by December 2022, sources informed
CNBC-TV18.com. The insurance regulator has also asked insurance companies to dematerialise existing/old policies by December 2023, sources said.
Starting November 1, eKYC will also become mandatory for all insurance policies. eKYC will further help in dematerialising insurance policies.
Insurance policies could be dematrialised with National Securities Depository Limited (NSDL), Central Depository Services (CDSL) or Karvy.
Dematerialisation means converting physical policy document into a modifiable online object. It means that a person will no longer need to indulge in paperwork at time of renewing the policy. It is aimed at reducing transaction costs and also ensuring swift modifications in policies.
Meanwhile, IRDAI has proposed setting up a new platform for sale, servicing and claims of insurance policies. The same will be available from December this year.
Earlier, sources said that the IRDAI committee is likely to propose allowing life insurers to sell health insurance. The committee is likely to seek a nod for the distribution and manufacture of health insurance.
