Dematerialization consists of converting a physical font document into an editable online object. This means that a person will no longer need to indulge in paperwork at the time of policy renewal.
The Insurance Regulatory and Development Authority of India (IRDAI) has made dematerialization of new insurance policies mandatory by December 2022, sources have informed CNBC-TV18.com. The insurance regulator has also asked insurance companies to dematerialize existing/old policies by December 2023, sources said.
From November 1, eKYC will also become mandatory for all insurance policies. eKYC will also contribute to the dematerialization of insurance policies.
Insurance policies could be dematerialized with National Securities Depository Limited (NSDL), Central Depository Services (CDSL) or Karvy.
(Edited by : Anshul)
First post: STI