In November 2015, the Insurance Regulatory and Development Authority of India (IRDAI) had directed all the insurance companies to start issuing electronic motor policies along with the physical policies. Also, the insurance regulatory body had recommended insurers to incorporate verification by a QR (Quick Response) code, which will meet safety standards.
The process now
The initiative was aimed at doing away with the need of carrying physical papers of insurance all the time. Also, the presence of a QR code will help the traffic police to access the insurance related information of an individual within a matter of seconds.
The new directive came into effect from December 1st, 2015, as all the new motor policies issued will have a QR code. The move is also aimed to enhance compliance as well as help boost the motor insurance penetration, which is often being ignored by most of the car owners. Insurance Information Bureau of India (IIB) conducted a recent study which showed that nearly 45% to 55% of vehicles are uninsured.
After the directive, the insurers will have to mail online policy in a PDF form to the insured’s registered email ID along with issuing a physical copy. Such a policy will also have a QR code that can be verified. This will help the policy takers to furnish policy details to the traffic police even if they are not carrying physical papers. Showing the policy document on a smartphone should be more than sufficient to prove compliance with the traffic rules. At the same time, the traffic policemen will be equipped with QR readers or scanners to help them access the complete policy details as and when required.
Meanwhile, an insured can also get a digital policy by registering for e-insurance account, where all the policies are stored online under one account. To help encourage policy takers for signing up for this account, the IRDAI has even waived off the KYC requirement at the time of opening the account. These measures are certainly promising and will lead up to a future where forgetfulness will not be of any concern.