Insurance companies spend crores of rupees in printing and dispatching policies, so the main reason behind coming up with e-insurance concept is to cut these costs and to reduce the hassles for buyers as they need to produce age and address proof every time they buy a policy.
The regulatory is working with depositories to introduce the system by April 2012, IRDA chairman, J Hari Narayan told ET.
IRDA first want to begin with life insurance policies, then will move to general insurance policies and then finally to health insurance.
The regulator and the insurers are working with Stock Holding Corporation, Central Depository Services Ltd, NSDL, Karvy Computers and Computer Age Management Services with this regard.
The move will benefit to both the insurer and insured.