Monday, February 1, 2010

Life Insurance Policies to be Paperless, as soon

The Life Insurance Council is working on a plan to digitize the sector, which could mean that life insurance policy holders may no longer need to keep paper records of their policies. The plan needs to be approved by the Insurance Regulatory and Development Authority (Irda) before customers can pick its benefits.

Life Insurance Council, which is a body intended for the development and co-ordination in the Life Insurance sector, is analyzing the plan and expects to be finalized within a month, reports PTI. "The proposal will be finalized in a month. We are investigative the issue. The present system involves a lot of logistics," said S.B. Mathur, the Council's Secretary General.

Demat, or digital arrangement of storing information, will appreciably save distribution costs for insurance firms. Two depositories - National Securities Depository (NSDL) and Central Depository Services (India) (CDSL) - together hold and handle accounts in the electronic form or demat accounts. NSDL maintains over one crore demat accounts, while more than 64 lakh accounts are managed by the other depository CDSL.
For More Information about Insurance Policy.
Term Plan, ULIP

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