Insurance regulator IRDA today asked insurers to preserve all policies in electronic format and issued norms for maintaining and safe keeping of all e-records.
"...The Authority intends to support the electronic maintenance of policy and claims records," Insurance and Regulatory Development Authority of India said in an Exposure Draft.
"While, these records are maintained in an electronic manner, it is important that issues like accessibility, security, archival, disaster recovery and business continuity are addressed in a comprehensive manner," it said.
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"And, to effectively ensure the same, a board approved policy dealing with all similar issues should be devised and implemented," it said.
It observed that while the insurers have been maintaining the register of the policies and claims in compliance with the provisions of the Insurance Act, 1938, the amendments to the Insurance Act have facilitated maintenance of the same in electronic form also.
Parliament approved the amendments in the Insurance Act earlier this year.
With the advancement in technology, the maintenance of records in electronic forms has become both easy and cost effective, it said.
The electronic maintenance of records also facilitates easy retrieval, round the clock accessibility and supports the commitment of the insurers to service the policy holders in the best possible manner, it added.
With regard to the storage of records in electronic form, it said that insurers should maintain privacy and security of policyholder data, handling virus, vulnerability issues, security of hardware and software and backups, disaster recovery and business continuity and data archival.
"Every insurer should within 90 days from the date of notification of these regulations, file with the Authority, their board approved policy on maintenance and storage of such records," it said.
Where such a policy undergoes change, the same should be filed with the Authority, within 30 days from the date of such revision by the board, it added.
In another notification, it said insurers are not permitted to apportion or write back such unclaimed amounts as income under any circumstance.
"Further, these unclaimed amounts are required to be shown as a separate line item in the balance sheet under Current Liabilities," it said.
