After stock markets, compulsory dematerilsiation will be introduced in the insurance segment. The Insurance Regulatory and Development Authority (Irda) has decided to launch an Insurance Repository System on a pilot basis to move towards an electronic paperless environment.
According to Irda, it will be mandatory for all the life Insurers and insurance repositories (IRs) to participate in the pilot launch. “During the pilot launch, each life insurer should convert a minimum of 1,000 or 5 per cent of the existing individual policies whichever is less for each of the IRs into electronic form. This will be, however, subject to a minimum of 250 policies per IR,” Irda said in its guidelines.
Irda said each life insurer should also issue a minimum of 1,000 or 5 per cent of the total individual policies issued during the launch period whichever is lower in electronic form for each of the IRs. This too will be however subject to a minimum of 250 policies per IR. The pilot launch will be for duration of 2 months with effect from July 1, 2014.
Irda said the pilot project will help “establish and test processes, IT and security framework of the complete IR system encompassing insurers, IRs and approved persons and gain confidence over the smooth running of the IR system”.