Depositories have almost finished their data collection
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 November.
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.