Panel to frame rules for demat insurance policies

Panel to frame rules for demat insurance पोलिसिएस

Mumbai: In a move that will usher in demat of insurance policies, insurance regulator Irda on Thursday has set up a working committee to chart out the modalities for electronic issuance of insurance policies. India may be having low insurance penetration but has the largest number of insurance policies.

The working group is expected to submit its recommendations to the Irda before March 4, 2011.

Among other issues the panel will examine mechanics involved in issuance of electronic policies, examination of the legal implications and the required amendments, if any to the relevant regulations, guidelines and other circular issued by Irda, modus operandi of proposed electronic structure. The other issues like operational procedures to be in place for policy servicing , cost benefit analysis and any other issues connected to electronic policies will also be discussed by the panel.

A Giridhar,member, Irda will head the panel. The other members of the panel are ICICI...Prudentail Life Insurance MD & CEO Sandeep Bakshi, Birla Sun Life Insurance , CEOJayant Dua, Bajaj Allianz Life Insurance CEO V Philip, HDFC Std Life Insurance CEO Amitabh Choudhary, TATA AIG General CEO Gaurav D Garg, CDSL executive director PS Reddy and NSDL Database Management MD & CEO Manoj Vaish. Randip Singh Jagpal, DVS Ramesh and G Rajeshwar will represent Irda in the panel. Sources point out that Irda had already started discussion with two depositories NSDL and CDSL.

The Indian life insurance industry has around 30 crore life insurance policies and every year around three crore policies are being added. The demat of the policies will help the industry to settle the claims faster.

Insurers said massive depository support is required for dematerialising life policies. Getting life insurance policies into the demat form was an idea of APJ Abdul Kalam, who..had floated the concept when he was the President of India.