Digitization of Health Insurance Policies From January 2014

Digitization will bring a multitude of benefits to both parties, the insured and the insurer.

It will make the policyholder free of the worry of losing the physical policy documents
It will make it possible for the policyholder to pay premium and renew policies online
For the insurers, this initiative is expected to bring down the policy issuing and managing costs
It is expected to increase the efficiency and effectivity of insurance services
Any change or update can be done fast and easy via e-insurance account
It is an eco-friendly initiative as the paperwork will be reduced

As of now, IRDA has appointed five companies as the official insurance repositories under Insurance Repository System (IRS) - NSDL Database Management Limited, Central Insurance Repository Limited, SHCIL Projects Limited, CAMS Repository Services Limited and Karvy Insurance Repository. Digitization will work in a very simple manner. Every policyholder will be assigned an e-insurance account via which he will be able to access the policy documents anytime, anywhere in the world and even download a copy, as and when needed.

The best thing about the initiative is that the digitization won’t come as an additional financial burden on the policyholder. The insurance companies are going to pay directly to the insurance repositories for their services without incurring any fraction of the cost on the policyholders.