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IRDA?s e-insurance norms by June

Insurance Regulatory and Development Authority (IRDA) is likely to release final guidelines on e-insurance in the first week of June, according to sources in the know. The insurance regulator?s new guidelines are likely to make it mandatory for insurance companies to issue only electronic policies from July 1.Last year, IRDA had allowed players like NSDL Database Management, Central Insurance Repository, SHCIL Projects, CAMS Repository Services and Karvy Insurance Repository to offer insurance repository services.According to players in the e-insurance market, a large number of life insurers have stayed away from the concept of offering dematerialised policies and want to take a wait-and-watch approach. Life Insurance Corporation (LIC) of India had earlier written to the regulator raising concerns regarding the implications of e-insurance policies, sources said.
However, the regulator is known to have been firm so far in saying that it wants policies to go the demat way so that customers and their families may benefit from it. The insurance repositories have thus issued only a little more than 1 lakh e-insurance policies to customers.

Source : Financial Express