Regulator promotes digital locker for storing e-insurance policies

Currently, details of the driving licence, car registration, voter ID, PAN card, school and college certificates, and many other documents issued by the government, can be saved digitally. The documents, when presented in digital form via Digilocker, will be accepted as ID proof for verification purposes.

Insurers should enable customers to store documents

To promote the adoption of Digilocker in the insurance sector, the regulator has advised all insurers to enable their IT systems to work with the facility to enable policyholders to use it for saving policy documents. Insurers should also inform their retail policyholders about Digilocker and how to use it. Insurers are advised to enable the process by which policyholders can place their policies in the Digilocker, the circular says.

Digilocker will not only help in storing policy documents in electronic form, but also reduce costs, eliminate customer complaints relating to non-delivery of policy documents, improve the turnaround time of insurance services, enable faster claims processing and settlement, reduce disputes, and reduce fraud, said IRDAI.

A recent survey by reinsurer Swiss Re highlighted an increasing trend among Indian consumers to buy insurance digitally, especially through payment apps.