Soon, keep Life, Health, Car, Term and all other insurance policies in Digilocker

The Insurance Regulatory and Development Authority of India (IRDAI) has advised insurance companies to enable their IT systems to interact with the Digilocker to enable policyholders to use this government facility for preserving their insurance policies.

The regulator has said that the insurance companies should inform retail policyholders about the Digilocker facility and how to use it. The insurers should also enable the process by which policyholders can place their policies in the Digilocker.

Under the Digilocker initiative of the government, citizens can get authentic documents/certificate in digital format from the original issuers of their certificates. The facility has been set up by the Central government to eliminate or minimise the use of physical documents. It also aims to enhance the effectiveness of service delivery, making it hassle-free and friendly for the users.

How digilocker will help insurance sector

The IRDAI said in its latest circular that in the insurance sector, Digilocker will drive reduction in costs and help in eliminating customer complaints.

“In the insurance sector, Digilocker will drive reduction in costs, elimination of customer complaints relating to non-delivery of policy copy, improved turnaround time of insurance services, faster claims processing and settlement, reduction in disputes, reduction in fraud and improvement in customer contactability,” the regulator said.

“On the whole it is expected that it will lead to better customer experience,” it added.

What insurers have to do

“In order to promote the adoption of Digilocker in the insurance sector, the Authority advises all insurers to enable their IT systems to interact with Digilocker facility to enable policyholders to use digilocker for preserving all their policy documents,” the IRDAI said.

“The insurers should inform their retail policyholders about Digilocker and how to use it. Insurers are also advised to enable the process by which the policyholders can place their policies in the digilocker.

The IRDAI also said that the Digilocker team in National e-Governance Division under Ministry of Electronics and Information Technology shall provide necessary technical guidance and logistic support to facilitate the adoption of Digilocker.

Source: Financial Express