The decision, according to the regulator, follows the feedback received from the life insurers expressing difficulties in printing and dispatch of policy documents and also the desirability of adopting digital means of doing business in the interests of policyholders and other stakeholders.
The regulator further said there will be a mandatory 30-day free look period for all such electronic policy documents.
Also, the insurer will be required to obtain the express consent of the policyholder to receive an electronic policy bond. If a policyholder insists on hard copy, the same has to be issued without any charge, it added.
Meanwhile, the regulator has also permitted the life insurers to file quarterly investment returns electronically.