The finance minister P Chidambaram has asked the insurance regulator to come up with a time frame for mandatory digitization of insurance policies.

According to a report in The Hindu, Chidambaram said that the digitization process of both life and non-life insurance policies, which is currently voluntary, should be made mandatory by the insurance regulatory and development authority (IRDA). The minister’s comments came during the formal launch of the insurance repository system (IRS) of the regulator on Monday.

"This (digitisation) should have been implemented long back," the minister said adding that it would be of great use especially during natural disasters when along with property even documents get destroyed.

The insurance repository services, touted to be first of its kind, will facilitate policyholders to access their insurance policies online. They can do this by opening an online insurance account for free and a log-in and personal identification number is provided to them.

According to T.S. Vijayan, chairman, IRDA, the repository system would significantly bring down the cost of issuing and managing policies. In addition, it will also provide flexibility and enhance the speed of service.

The insurance regulator had issued licences to five companies— NSDL Database Management Limited, Central Insurance Repository Limited, SHCIL Projects Limited, CAMS Repository Services Limited and Karvy Insurance Repository for operating the IRS.