Complying with the direction, few insurance companies have already started issuing digital insurance policies.
As per the circular, the companies can issue digital insurance policies by depositing Rs 20 per policy for a postal ticket of insurance policy and Rs 5 per insurance policy for postal ticket of insurance premium receipt in any designated revenue counter of the government.
The insurance companies will be responsible for the privacy and security of issued digital insurance policies. However, the mechanism set for the issuance of physical insurance policies will remain the same.
Similarly, the board has directed companies to collect insurance premiums through account payee cheques or digital mediums. The board has directed companies to collect the first premium or renewal premium above Rs 100,000 through an account payee cheque or digital medium from the insuree, insurance proposal, insurance policyholder and beneficiary of the insurance policies.
Moreover, the board has directed companies to reject cheques received from parties other than insure, insurance proposals, insurance policyholders and beneficiaries of the insurance policies.
