The IRDA (Insurance Regulatory and Development Authority) is working on a new project until the end of August, where all life insurers have to tie up with all five insurance repositories (IRs) and convert a minimum of 5% of the existing life insurance policies into electronic form, according to a media report.
In addition, insurers have to issue 5% of the new policies they sell during this period in electronic form, the report added.
Until now, it was not mandatory for insurance companies to tie up with all IRs. However, the pilot project is expected to address that issue.
The policyholders will not have to pay any additional charges for EIA (electronic insurance account). The expenses of tying up with the IR and providing these facilities will be borne by the insurance company.