The insurance penetration has seen a spike in recent times and over 80 per cent of the insurers prefer a physical copy of their insurance document, according to a recent survey. However, only less than half of the purchasers received a physical copy of their insurance from the companies, increasing uncertainty around receiving claims among the buyers, the finding of the survey said.
The survey, conducted by Bombay Master Printers Association (BMPA), stated that 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, according to the findings of the survey based on around 5,900 responses spread across age groups and regions.
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.
Why hard copy preferred
Close to 80 per cent of the survey participants feel that during the time of the claim or an emergency, a hard copy of the policy issued by the insurance company would be preferable.
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.
"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," said Mehul Desai, former President and current Managing Committee member of Bombay Master Printer's Association (BMPA).
The companies not only ask for the physical copy of the insurance policy but also other necessary documents. Over 60 per cent of the survey respondents felt that the insurance companies push for only digital copies, instead of physical copies. 67 per cent of the participants said that they take a printout of the policy from a cyber cafe printer, a printer shop, or home, to be on a safer side.
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 policy documents and exempted them from the requirement of sending insurance policies in physical form till March 31, 2022, following two extensions.
About 73 per cent of the survey participants believed that it was better to have a physical copy of the document for records, especially in the case of life and health insurance.
(With inputs from ANI)