The Insurance Regulatory and Development Authority of India (IRDAI) will meet insurance industry CEOs today and discuss dematerialisation of policies, sources informed CNBC-TV18.
"If made mandatory, IRDAI will start dematerialisation of existing policies. As a result, all new policies will be sold in demat form," sources said.
Insurance policies could be dematrialised with National Securities Depository Limited (NSDL), Central Depository Services (CDSL) or Karvy.
Dematerialisation means converting physical policy document into a modifiable online object. It means that a person will no longer need to indulge in paperwork at time of renewing the policy. It is aimed at reducing transaction costs and also ensuring swift modifications in policies.
Meanwhile, IRDAI has proposed setting up a new platform for sale, servicing and claims of insurance policies. The same will be available from December this year.
Earlier, sources said that the IRDAI committee is likely to propose allowing life insurers to sell health insurance. The committee is likely to seek a nod for the distribution and manufacture of health insurance.
The committee cited improved penetration, and global practice to support the move.