Insurance regulator IRDA is not considering any proposal to shift the sector to a paperless model,but customers can opt for e-insurance. "Insurance Regulatory and Development Authority (IRDA) has reported that there is no proposal to shift the insurance sector to a paperless model," Minister of State for Finance,Namo Narain Meena said in written reply to Lok Sabha on Friday. He further said,"The insurance companies could continue to issue paper insurance policies. However,where an insurer issues e-insurance policies,the company shall do so at the option of the policyholder by utilising the services of an insurance repository licensed by the Authority." "The insurers issue the electronic policies only at the option of the policyholders thus the paperless model is unlikely to create inconvenience to the illiterate and rural population of remote villages," the Minister added. It is also clarified that all insurance policies in electronic form shall be treated as valid insurance contracts. According to the information provided by IRDA to the government,there are five entities which have been granted in-principle approval to act as insurance repositories to hold insurance policies in electronic form on behalf of policy holders. These entities are NSDL Database Management Limited; CDSL Ventures Limited; Stockholding Corporation of India Limited; Karvy Consultants limited; and Repository Services Limited. It is explained that the objective of an insurance repository is to provide policyholders with a facility to keep insurance policies in electronic form and undertake changes,modifications and revisions in the insurance policy. These are to be done with speed and accuracy in order to bring efficiency,transparency and cost reduction in the issuance and maintenance of insurance policies.
