IRDA considers to set up depository for demat policies

India Infoline News Service | Mumbai |

However, customers would have the choice to switch over to paperless form and would not be mandatory

The Insurance Regulatory and Development Authority (IRDA) is considering over a proposal to set up a depository that will allow customers to hold policies in paperless form similar to investors holding equity shares in demat accounts.

Sudhin Roy Chowdhury, Member (life), IRDA, said that instead of holding policy bonds in paper form, the customers would hold them in demat form.

Mr Chowdhury was speaking at a seminar organised by the Bengal Chamber of Commerce and Industry on the Indian insurance industry in Kolkata on 10th May.

However, customers would have the choice to switch over to paperless form and would not be mandatory, Mr Chowdhury added.

The regulator would set up an autonomous body to operate the depository. It will also lay down the regulations.
 

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