Insurance Cos asked to issue digital policies, use DigiLocker by IRDAI

Insurance sector regulator Irdai has asked insurers to issue digital policies to their policyholders and also tell them how to use these documents, as reported by The Economic Times.
 
The regulator has reasoned that the step will not only bring down the cost but also help speed up claim settlement process.
 
In its circular issued to all insurers excluding GIC Re, Lloyd's (India) and FRBs (foreign re-insurance branches), Irdai said that Digilocker will drive reduction in costs, elimination of customer complaints relating to non-delivery of policy copy, improved turnaround time of insurance services, faster claims processing and settlement, reduction in disputes, reduction in fraud and improvement in customer contactability. 
 
In order to promote the adoption of Digilocker in the insurance sector, the Authority advises all insurers to enable their IT systems to interact with Digilocker facility to enable policyholders to use Digilocker for preserving all their policy documents.
 
The insurers should inform their retail policyholders about Digilocker and how to use it. Insurers are also advised to enable the process by which the policyholders can place their policies in the digilocker, said the regulator.
 
As per the circular, the Digilocker team in NeGD (National e-Governance Division) under Ministry of Electronics and Information Technology will provide necessary technical guidance and logistic support to facilitate adoption of Digilocker. 
 
Digilocker is an initiative under the Digital India programme by the government where citizens can get authentic documents/ certificate in digital format from original issuers of these certificates.
 

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Changes in Our Business Model
 
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
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