The Insurance Regulatory and Development Authority (IRDA is mulling over a proposal to set up a depository that will allow policy holders - customers to hold policies in paperless form much like investors holding equity shares in demat accounts.
Mr. Sudhin Roy Chowdhury, IRDA member (life) said, “We IRDA thinking of having an insurance depository such as the one in the stock market. It is still in a formative stage”
He said that instead of holding policy bonds in paper form, the policy holders would hold them in demat paperless form.
The IRDA official said a separate autonomous body would be formed which would operate the depository, adding that the regulator would lay down the regulations.
However, Mr. Roy Chowdhury said insurance policy holders would have the option to switch over to paperless form and would not be mandatory as in the case of stock market.
He also said insurers should take steps to stop misselling of products by their finanancial advisors.
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