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All Life Insurers Maintain Policies in Electronic Form: IRDAI

IRDAI has asked all insurance companies to maintain and store the data pertaining to policies and claims in an electronic format so as to facilitate easy retrieval and compliance with various regulations, as quoted in The Economic Times.

"Every insurer shall maintain a record of every policy issued and a record of every claim made...in electronic form irrespective of maintenance in any other form,” IRDAI said in a notification. According to the regulator, the system of maintenance in electronic format should have all necessary security features. Also, the records, including those held in electronic form and pertaining to all the policies issued and all claims made, shall be stored and maintained in data centers within India only.

Furthermore, IRDAI added, "Every insurer should ensure that the records held are organized in such a manner as may be required for business use and easy retrieval so as to support the policyholder service and compliance with the various laws, regulations, circulars, guidelines, and such other regulatory framework as applicable from time to time. Every insurer should, within 90 days, from the date of notification of these regulations, file with the Authority, their board approved policy on maintenance and storage of such records.”

With regard to the storage and safety of records in the electronic form, IRDAI has asked all insurers to maintain privacy and security of policyholders’ data, detecting virus, security of hardware and software, disaster recovery, and business continuity.

Written By: PolicyBazaar - Updated: 21 January 2021
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