IRDA to introduce demat insurance policies soon

Demat policies will allow customers to get their policies serviced anywhere

August 08, 2012 1:50 IST | India Infoline News Service
A number of changes are planned to take place in the insurance industry with IRDA’s (Insurance Regulatory and Development Authority) final approval to insurance repositories which will allow introduction of demat policies.

J Harinarayan, chairman, IRDA, said, demat life insurance policies will be introduced soon. The regulator is ready to grant certificate of registration to five companies for building insurance repositories. The companies that have received IRDA approval for setting up insurance repositories include NSDL, CDSL, Karvy, CAMS and STCI.

Demat policies will allow customers to get their policies serviced anywhere. It will also facilitate a one-time KYC (know your customer) process to be valid for all insurance purchases across companies. Demat policies also benefit policyholders as they don’t have to be worried about losing their insurance document which has to keep safely for a long period (20 to 30 years). Repository services will also do basic policy servicing on behalf of insurers.

Mr Harinarayan was speaking at the sidelines of the 15th Insurance Summit organised by the Confederation of Indian Industry on Monday in Mumbai.

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