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New way to store Insurance policies (Digi locker ) – will help us to guide people to go digital

About IRDAI circular

The Insurance Regulatory and Development Authority of India (IRDAI) is a regulatory body having jurisdiction under the Ministry of Finance. IRDAI is aimed to regulate and promote the insurance and reinsurance operations in India. IRDAI was formed under the Act of Parliament passed by the name “Insurance Regulatory and Development Authority Act, 1999”.

IRDAI (Insurance Regulatory Authority of India) issued a circular on 9th February 2021, which is in an advisory to all Insurance companies for Digital Insurance Policies using DigiLocker.

Digilockers enable to maintain that security and avoid the risk of policy misplacement by user and service provider.

National eGovernance Division, Ministry of Electronics & Information Technology (MeitY), under Digital India Initiative, DigiLocker is a platform that allows documents & certificates to issue, verify, share, and many other advantages as digitally made available by the authorities.

The circular issued by the authority signifies that the insurers should intimate their retail policyholders about Digilocker and create awareness about Digilocker. Insurers are also encouraged to provide facilities that will enable more usage through Digilocker and allow users to be a privilege and ease to work under the Digital environment.

  1. How to access it?

There are ways to access users’ documents such as Policy Number, Policy effective date, and other ways to be prescribed by the authority. Firstly, click Insurance Company (Insurer) under the “Banking and Insurance” section. Further, by clicking the relevant policy type from the available options. Enter the parameters allowed to use in the corresponding fields and select “Get Document” after checking the consent checkbox. If the policy document is taken out from the repository, it will be automatically added under the “Issued Documents” in your DigiLocker account.

3. How to Upload Documents on Digilocker?

  1. Download the DigiLocker App (Android Only) on your smartphone or visit the official website of DigiLocker.
  2. Signup using the phone number and validate using your Aadhaar
  3. Once at the dashboard, you need to click on the Upload button.
  4. Select the file you need to upload in the Upload File Dialog box.
  5. Select the type of the uploaded document from the dropdown list.
  6. After choosing the appropriate document type, click Save. You can also edit the name of the file using the Edit icon.

4. Benefits of Using Digilocker for Storing Insurance policies:

  1. Users can easily access your digital documents anywhere, anytime, thus saving time, paperwork, and getting your work done on the move.
  2. Reduction in the administrative overhead of the government by minimizing the use of paper, thus making the process hassle-free and environment-friendly.
  3. It makes the validation of documents easier as they are issued directly by valid users.

5. Impact of such Decision:

Digilocker targets to eliminate or minimise the use of physical documents. Also, it aims to reduce paperwork; the essence of this is to avoid hassle to citizens or users of the facility.

  1. Digilocker will result in a reduction in costs,
  2. Elimination of customer grievances relating to non-delivery of policy copy,
  3. Reduction in fraud and improvement in customer reliability and credibility,
  4. Reduction in disputes, improve the turnaround time of insurance services,
  5. Faster claims processing and settlement of other issues,

On the whole, its implication resulting in a better customer experience and faster service to users.

Reference: 1. Press Release- https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1697372 2. https://uiic.co.in/en/UIIC-in-digilocker

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