80% Insurance Buyers Prefer Physical Policy Document

Over 80 per cent of insurance buyers still prefer a physical copy of their insurance document despite rapid digitization. With the contribution of insurance to GDP having risen sharply in the last one year, it is important to also make buyers feel safe about their investment. 

Most companies still ask for the original paper document while processing the claim. The insurance regulator must consider restoring section 4 and mandating issuing physical copies of the policy document at the earliest in the interest of buyers. As an insurance policy is a contract between the insurance company and the insured individual, nearly 82 per cent of the buyers preferred a physical copy over the digital.

About 56 per cent of the respondents were in the age-group of 18-40 years, 28 per cent in the 41-60 years, and 14 per cent of the respondents were 60 years and above. The policy certificate contains critical details of the insurance cover laying out the benefits, terms and conditions, the procedure to file for a claim if needed, and the contact details of the insurer. 

Close to 80 per cent of the survey participants feel that during the time of claim or an emergency, a hard copy of the policy issued by the insurance company would be preferable. Incidentally, while several insurance companies decided to 'Go Green' by either discarding the physical copies of insurance policies completely or making it optional, even before the pandemic, many insurers believe that the same insurance companies ask them for a physical copy while claiming for the policy amount. 

The companies not only ask for the physical copy of the insurance policy but also other necessary documents, it added. As per regulation 4 of IRDAI (issuance of e-insurance policies) Regulations, 2016, an insurer has to issue both physical and electronic insurance certificates to policyholders. However, as an interim measure in view of the COVID-19 pandemic, IRDAI had allowed insurers to issue only electronic.