12-Feb-2021: IRDAI advises all Insurance companies for issuance of Digital Insurance Policies via DigiLocker

IRDAI (Insurance Regulatory Authority of India) in a Circular dated 9th February, 2021, has advised all Insurance companies for issuance of Digital Insurance Policies via DigiLocker. The Circular states, "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 circular also mentions that 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.  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 program by the Ministry of Electronics & Information Technology (MeitY) Government of India where citizens can get authentic documents/ certificate in digital format from original issuers of these certificates. It aims at eliminating or minimising the use of physical documents and will enhance effectiveness of service delivery, making these hassle free and friendly for the citizens.

In the insurance sector, 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. On the whole it is expected that will lead to better customer experience.

The decision of IRDAI came in backdrop of a letter written by Shri Sanjay Dhotre, Minister of State for Electronics & IT, Communications and Human Resource Development, Government of India to Shri Anurag Singh Thakur, Minister of State for Finance and Corporate Affairs with regards to issuance of digital insurance policies to citizen's DigiLocker accounts. In the letter Shri Dhotre had requested Shri Thakur to advise an IRDAI to issue an advisory to all Insurance Companies to make available the digital Insurance policy of all policy holders via their DigiLocker account and acceptance of Digilocker issued documents as valid documents. This will provide an alternate channel to access and manage all their insurance policies in a safe and authentic manner and will be of a great value to their customers."

Insurance certificate is an important document for a citizen and his/ her family. Timely access to insurance certificates can be of critical importance. Thus, providing digital insurance certificates through DigiLocker would be of significant convenience to citizens.

18-Aug-2018: Cover mental illness, IRDAI tells insurers

The Insurance Regulatory and Development Authority of India (IRDAI) has directed all insurance companies to make provision to cover mental illness in policies.

Reference is drawn to the Mental Healthcare Act, 2017, which has come into force w.e.f 29.5.2018. As per Sec 21(4) of the said Act, every insurer shall make provision for medical insurance for treatment of mental illness on the same basis as is available for treatment of physical illness.

All insurance companies are hereby directed to comply with the aforesaid provisions of the Mental Healthcare Act, 2017 with immediate effect.

19-Jul-2017: Cabinet approves IRDAI's admission as a signatory to International Association of Insurance Supervisors (IAIS), Multilateral Memorandum of Understanding (MMoU)

The Union Cabinet has given its ex-post facto approval for IRDAI's admission as a signatory to International Association of Insurance Supervisors (IAIS), Multilateral Memorandum of Understanding (MMoU)

The International Association of Insurance Supervisors is a global framework for cooperation and information exchange between insurance supervisors. International Association of Insurance Supervisors, Multilateral Memorandum of Understanding is a statement of its signatories’ intent to cooperate in the Field of information exchange as well as procedure for handling information requests. With increasing integration of financial market and growing number of internationally active insurance companies there is an increased need for mutual cooperation and information exchange between insurance industry supervisors. In this background the IRDAI had become a signatory member of the International Association of Insurance Supervisors, Multilateral Memorandum of Understanding. In the absence of any bilateral agreements the IAIS, MMoU provides a formal basis for cooperation and information exchange between the Signatory Authorities regarding the supervision of insurance companies where cross-border aspects arise. The scope of the IAIS MMoU is wider than the existing agreements as this agreement also provides for supervision of other regulated entities such as insurance intermediaries under Anti Money Laundering, (AML) and Combating the Finance of Terrorism (CFT).