IRDAI asks insurers to issue Digilocker to policyholders; details here

Updated : February 23, 2021 03:43 PM IST

The Insurance Regulatory and Development Authority of India (IRDAI) has recently asked all insurance companies to issue DigiLocker facility to their policyholders.

The Insurance Regulatory and Development Authority of India (IRDAI) has recently asked all insurance companies to issue Digilocker facility to their policyholders. The regulator said that the step will not only bring down the cost but also help speed up the claim settlement process.

Digilocker is a cloud-based government platform that allows users to upload and access the digital form of their documents.

According to insurance experts, the new announcement of IRDAI will make the documents accessible for customers in one place that will reduce the hassle of storing the physical documents over the years of time. This will further prevent any misuse of the documents.

Eventually, as IRDAI has pointed out, Digilockers will help in reduction in costs, elimination of customer complaints relating to non-delivery of policy copy and improve the turnaround time of insurance services. Also, it will enable faster claims processing and settlement, reduction in disputes, reduction in fraud and improvement in customer contractibility.

It’s important to note that some of the insurance companies are already offering this service.

“We have been offering Digilocker facilities to our customers for two years now. It enables customers to submit their KYC documents and access their insurance policy documents in a digital format, and get a single view of all their essential documents anytime,” said Kayzad Hiramanek, Chief- Operations & Customer Experience at Bajaj Allianz Life.

“Maintaining and storing physical copies does become problematic over time, especially considering the long-term nature of insurance plans. Hence, the issuance of digital copies is welcomed by both customers and us, the providers. IRDAI's circular is a desirable step, as it will enable more service providers and customers to go digital with their life insurance policies, and further enabling the digital drive of the industry,” he added.

IRDAI asks insurers to issue Digilocker to policyholders; details here

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