The IRDAI is working on making it mandatory for all insurance policies to be issued in electronic form, according to Mr SV Ramanan, CEO of CAMS Repository Services.
Mr Ramanan told Moneycontrol that the IRDAI may change the rules to ensure that policies are issued online only through insurance repositories.
"The regulator has already changed the regulations to ensure that all electronically issued policies will be stored on an e-account," he said.
An e-insurance account stores all the insurance policies of a policyholder in a digital format. This is maintained by an insurance repository. The policyholder has access to his insurance portfolio contained in the account at a click of a button on the Internet. Each e-insurance account has a unique account number.
The electronic insurance repository service was launched in 2013. However, to date, there are around 2m digitised insurance policies.
Insurers have complained that customers demand their insurance policy in hard copy even after receiving an e-policy. This doubles the costs for insurers, since they already pay fixed annual charges for the electronic issuance of the policy. For customers, the service is provided free to them.
Mr Ramanan said the IRDAI may also carry out awareness campaigns to show why customers don’t need a hard copy insurance policy.