Most companies still ask for original paper documents while processing the claim. Insurance regulator should consider reinstating Section 4 and issue physical copies of policy documents at the earliest buyer’s interest, it said.
As an insurance policy is a contract between Insurance company and insured individuals, about 82 percent of buyers preferred a physical copy over a digital one, according to the survey findings, based on nearly 5,900 responses spread across age groups and areas,
About 56 per cent of the respondents were in the age group of 18-40 years, 28 per cent were in the 41-60 years, and 14 per cent respondents were in the age group of 60 years and above.
The policy certificate contains important details of the insurance cover, benefits, terms and conditions, procedure for filing claim and contact details of the insurer, if required.
“Around 80 per cent of the survey participants feel that in case of a claim or emergency, a hard copy of the policy issued by the insurance company would be better.
Incidentally, while many insurers decided to ‘go green’ by either abandoning physical copies of insurance policies altogether or making it optional, even before the pandemic, many insurers believed that the same insurance Companies ask for a physical copy from them when making a claim. The policy amount, it said.
It added that companies not only ask for a physical copy of the insurance policy but also other necessary documents.
As per regulation 4 of IRDAI (Issue of e-Insurance Policy) Regulations, 2016, an insurer is required to issue both physical and electronic insurance certificates to the policyholders.
However, as an interim measure in view of COVID-19 Pandemic, IRDAI had allowed insurers to issue only electronic policy documents and exempted them from the requirement to send insurance policies in physical form till March 31, 2022, after two extensions.