The Insurance Regulatory and Development Authority of India (IRDAI) has instructed all the insurance companies in the country to make their respective IT systems capable of interacting with the government’s DigiLocker facility assuring the accessibility of this facility to the policyholders enabling them to preserve and secure their policies.
The regulating authority has directed the insurance companies to make the retail policyholders aware of the DigiLocker facility and guide them in its proper utilization. They should also carry out the processes which will enable the policyholders to place their policies in the DigiLocker.
The intention of this initiative by the Central government is mainly to lessen the usage of physical documents. This initiative allows the citizens to get their authentic documents or certificates in a digitalized format from the original issuers of the same. This is also expected to augment the effectiveness and efficiency of the delivery of service, making it more user friendly.
How is the DigiLocker initiative going to help the insurance segment?
The regulating authority has assured that with everything being generated and stored in a digital format in the DigiLocker, there is going to be a visible reduction in cost. This can also reduce the scope for errors and complaints and improve service delivery. This initiative will address specific issues like non-delivery of the policy copies, fraudulent practices, and promise faster processing of claims and settlements and better customer contact ability, all of which will eventually lead to better delivery of services and an increase in overall customer satisfaction.
The role of the insurers in this attempt for digital transformation, as mentioned above, is to make sure that they have efficient IT systems that are capable of handling the facility. They are also supposed to be the guiding light of retail policyholders in enlightening them about the process at the same time carrying it out efficiently. The initiative includes all major insurance policies like life, car, term, and health. The IRDAI has also assured that the National e-Governance Division under the Ministry of Electrics and Information Technology will be providing the essential technical assistance and logistic support.
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