If you opt for life insurance policies in electronic format, you can get 10-15% discount on your life insurance policy premium. This is because the Insurance Regulatory and Development Authority of India (IRDAI) has revised guidelines with regard to repositories and dematerialization of insurance policies.
According to these guidelines, insurers can offer discount in premium in respect of those policies maintained only in the electronic form.
Dematerialization of insurance policies is done by five insurance repositories. The objective of creating an insurance repository is to provide customers the facility to keep policies in electronic format. Keeping insurance policies in electronic form provide safety from misplacing.
Besides, the IRDAI revised norms for outsourcing of both core and non-core activities mentioned in outsourcing guidelines to insurance repositories. This may help insurers outsource the core activity such as policy servicing function to specialist, who can not only provide front office presence, but also execute service request thereby reducing cost of operations and improve in turn around time.
