Insurance policies

Irdai imposes the dematerialization of new insurance policies by December 2022: sources

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Dematerialization consists of converting a physical font document into an editable online object. This means that a person will no longer need to indulge in paperwork at the time of policy renewal.

The Insurance Regulatory and Development Authority of India (IRDAI) has made dematerialization of new insurance policies mandatory by December 2022, sources have informed CNBC-TV18.com. The insurance regulator has also asked insurance companies to dematerialize existing/old policies by December 2023, sources said.

From November 1, eKYC will also become mandatory for all insurance policies. eKYC will also contribute to the dematerialization of insurance policies.

Insurance policies could be dematerialized with National Securities Depository Limited (NSDL), Central Depository Services (CDSL) or Karvy.

Dematerialization consists of converting a physical font document into an editable online object. This means that a person will no longer need to indulge in paperwork at the time of policy renewal. It aims to reduce transaction costs and ensure rapid policy changes.
At the same time, IRDAI proposed the establishment of a new platform for the sale, management 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 to allow life insurers to sell health insurance. The committee is likely to seek a nod for health insurance distribution and manufacturing.