IRDAI: Policyholders Can Now Use DigiLocker To Store Insurance Policies

The Insurance Regulatory and Development Authority of India (IRDAI) has urged insurance providers to allow Digilocker to associate with their IT institutions so that policyholders can use this app introduced by the Ministry of Electronics and Information Technology, Government of India to keep their insurance policies secure. The authority has stated that retail policyholders must be notified by insurance providers about the Digilocker service and to use it. Insurers can also facilitate the procedure of putting their policies in the Digilocker to the policyholders. Under the government's Digilocker project, individuals can get valid records or certificates from the initial issuers of their credentials in digital format. To eliminate or minimize the use of physical records, the facility was developed by the Central Government. It also seeks to increase service provision efficiency, rendering it hassle-free and user-friendly.

How Digilocker will strengthen the insurance market?

In its new circular, the IRDAI claimed that Digilocker will accelerate cost savings in the insurance industry and aid eliminate customer grievances. "In the insurance sector, Digilocker will accelerate cost reductions, the reduction of customer concerns relating to the failure to provide policy copies, enhanced response time for insurance facilities, better processing and settlement of claims, the mitigation of complaints, the elimination of abuse and the enhancement of contact facility of the customers" stated the authority. "It is expected to lead to a better customer experience in general," it said.

What insurers are required to do?

"The Authority urges all insurers to allow their IT systems to interact with Digilocker facilities in order to encourage the acceptance of Digilocker in the insurance sector, so that policyholders can use Digilocker to preserve all their policy records," the IRDAI stated.
Insurers need to let their retail policyholders know about and how to use Digilocker. Insurers are also suggested facilitating the procedure in the Digilocker by which the policyholders can locate their policies. IRDAI also claimed that, in order to promote the implementation of Digilocker, the Digilocker department in the National e-Governance Division under the Ministry of Electronics and Information Technology will provide the required technical guidelines and logistic aid.