LIC to study legality of demat policy docs

Life Insurance Corporation (LIC) today said it would examine the legal validity of a scheme for paperless policy documents, mooted by President APJ Abdul Kalam.

The legalities have to be examined to see whether the paperless scheme, called dematerialisation, is legally valid, T S Vijyan, chairman of LIC, said.

"Policy document is a legal document, which can be endorsed to another person. I can assign my policy to a bank, but nomination under the policy has to be registered," he said.

"We will look at the feasibility of the demat. We have to talk to demat companies which can hold policy documents," he added.