The insurance regulator has asked companies to spruce up their IT systems to allow storage of policies through the Digilocker. Policyholders are already permitted to store their policies electronically in the Digilocker but this facility hasn’t yet taken off in a big way in the sector. The Insurance Regulatory and Development Authority of India (IRDAI) now wants insurers to encourage their customers to use this facility.
DigiLocker is a digital locker app that can be used to securely save copies of important documents on devices such as a mobile phone. The app is available for download on the Google Play Store and Apple App store. Important government documents such as driving licence, car registration, voter ID, PAN card, school and college certificates, and many other document can be saved digitally. Documents presented in digital form DigiLocker can be produced as an ID proof for verification purposes.
The DigiLocker will not only help in storing policy documents in electronic form but also reduce costs and eliminate customer complaints relating to non-delivery of policy copy. It would also result in an improved turnaround time of insurance services, faster claims processing and settlement, reduction in disputes, reduction in fraud, etc. On the whole, it is expected to enhance the customer experience.
The Digilocker team in NeGD (National e-Governance Division) - under the Ministry of Electronics and Information Technology - shall provide necessary technical guidance and logistic support to facilitate the adoption of Digilocker.
Insurers should also inform their retail policyholders about Digilocker and how to use it. Insurers are also advised to enable the process by which policyholders can place their policies in the Digilocker, the circular said.
To promote the adoption of Digilocker in the insurance sector, the regulator has advised all insurers to enable their IT systems to interact with the facility to enable policyholders to use it for preserving policy documents.