Depositories have almost finished their data
Life insurers have agreed to go for dematerialisation of policies
and the depositories have almost finished their data collection. According to
an official close to the development, demat policies will be available from
The benefits of holding policies in an electronic form are
obvious: no risk of loss or damage to policy; convenience of anytime, anywhere
access to policy documents and elimination of paperwork.
Earlier few IFAs and insurers were against demat of policies
because they feared that it might weaken a client-agent relation and increase
cost of insurers. But IRDA and depositories have resolved the issue.
Recently, few top insurers held a close discussion with IFAs and
promised them to train on client servicing before demat policies are issued in
the market. The training will help the IFAs serve their client better. Even the
discussion highlighted the pros of dematerialisation of policies.