Bangalore: Now an electronic solution is available for keeping the Life Insurance credentials safe and compact in an electronic form without having to worry much about losing the documents involved into it.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA) is set to launch its own monitored Demat Account system for its customers, which will ease up safekeeping not only for confidential documents of the bearers but will also provide an online transaction of investments equipped with the records to be seen online. This system will be introduced for life insurance policies initially, but will be followed by general insurance policies at a later stage. However, later it would grow further to cater to other areas of insurance sectors depending on how well it performs.

A vantage point about this system is that it will store the policy holders account information of different insurance companies allowing customers an easy access to their respective accounts. It will help the policy buyers to obtain policies. Presently, work is in progress to trace time of purchasing each of the policies made.

IRDA Chairman, J Hari Narayan told,  “The depositories are working with us to introduce the system by April 2012. We are, at present, ironing out issues that are involved in the process. Life insurance policies will be taken up first followed by general insurance policies,”

Earlier, the prospective buyers had to bear the hassle of presenting ID proof and address proof which was a mandate at time of obtaining a policy. But Demat Account Facility will simplify this process by storing data in an electronic format and making it available as and when required. This will lessen a lot of effort for the policy holders and open up new ways for transaction ruling out the need to submit documents again and again. This will in turn quicken the process of getting a policy as the major paperwork will be pre-recorded within the system leaving the only task for the customers to avail the premium payments.

With the introduction of Demat Account facility, policy holders will not have to safeguard the policy statements and essentials which are to be produced while filing a claim. A policy holds a longer period of 20-25 years or even more than that and often invites troubles for holders in its conservation. But now with such an electronic system, there will be no cases or chances for the papers getting misplaced or lost as it would be replaced with an electronic version, which will store the policy user’s data.

The similar format of opting a life insurance policy from numerous companies will further provide the ease of maintaining a track in the policy structure. Not only this, it will also provide online solutions to troubleshoot issues related to any complexities related to insurance policies. This will significantly provide an added boost to make policy user’s life simpler and hassle free.