NEW DELHI : Insurance industry regulator Irdai has asked insurers to issue digital policies to their policyholders and also tell them how to use these documents. The regulator has estimated that this step will not only reduce costs, but will also help speed up the claims settlement process.
In its circular to all insurers except GIC Re, Lloyd’s (India) and FRB (foreign reinsurance branches), Irdai said that Digilocker will lead to cost reduction, elimination of customer complaints about non -Policy copy delivery, improved insurance service turnaround time, faster processing and resolution of claims, reduced litigation, reduced fraud and improved contactability with customers.
Overall, this is expected to lead to a better customer experience, said the Insurance Regulatory and Development Authority of India (Irdai).
In order to promote the adoption of Digilocker in the insurance sector, the Authority advises all insurers to allow their IT systems to interact with the Digilocker installation to allow policyholders to use Digilocker to keep all their police documents.
Insurers must inform their policyholders in detail about Digilocker and how to use it. Insurers are also urged to activate the process by which policyholders can place their policies in the Digilocker, the regulator said.
In accordance with the circular, the Digilocker team of the NeGD (National Online Governance Division) under the Ministry of Electronics and Information Technology will provide the technical advice and logistical support necessary to facilitate the adoption of Digilocker. .
Digilocker is a government initiative under the Digital India program, which enables citizens to obtain authentic documents / certificates in digital format from the original issuers of these certificates.
It aims to eliminate or minimize the use of physical documents and will improve the efficiency of service delivery, making them hassle-free and citizen-friendly.
Notably, Irdai’s decision came in the context of a letter written by Sanjay Dhotre, Minister of State for Electronics and Computing, Communications and Human Resources Development, to Anurag Singh Thakur, Minister of Finance and Corporate Affairs regarding the issuance of digital insurance policies to citizens’ DigiLocker accounts. In the letter, Dhotre had asked Thakur to advise Irdai to issue a notice to all insurance companies in order to make the digital insurance policy available to all policyholders through their Digilocker account and to accept the documents issued. by Digilocker as valid documents.
“This will provide an alternative channel to access and manage all of their insurance policies in a secure and genuine manner and will be of great value to their clients,” Dhotre wrote in the letter.