Albeit driving without vehicle insurance is offense according to Motor Vehicle Act but now you may not need to carry the insurance policy of your vehicle. Often drivers forget it to carry the policy with them and subsequently face annoyance of the traffic police despite having a valid insurance policy. To avoid such situation, Insurance Regulatory and Development Authority of India (IRDA) has launched e-Vahan Bima, a digital vehicle insurance policy, which can be stored in your email or phone.
Telangana has become the first state to formally recognize electronic motor insurance policies and launched it last week. IRDA expects other states to follow the suit.
The policy would be issued in digital format which can be seen in any smart phone. Alongside, QR (Quick Response) code will be issued that can be scanned for verification of policy details should the need arise. SMS based verification is also in place. In due course, insurers will also provide mobile app to the policyholder. This application could then be downloaded with ease on windows, android and apple phones wherein the policy details would be available.
It is expected that electronic motor insurance policies will help in issuance of insurance policies at the door steps of the vehicle owners. These policies can be issued on-line across the country, thus, paving way for a host of benefits like faster issuance, removal of fraud, higher customer satisfaction, elimination of revenue leakages, analytics and so on.
IRDA sources said that facilitation of issue of Insurance through online kiosks and ATMs could be conceived in the near future.
Needless to say, millions of tonnes of paper will be saved every year. The success of this initiative will go a long way in extension of this facility in the rest of the country.