82% insurance buyers prefer physical copies of policy document; know why

More than 80% of the insurers prefer a physical copy of their insurance document over the digital, according to the findings of a latest survey conducted by a Mumbai-based printers association.

The survey was conducted by Bombay Master Printers Association (BMPA) by analysing 5,900 responses spread across age groups and regions. The survey further revealed that 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.

About 56% of the respondents were in the age-group of 18-40 years, 28% in the 41-60 years, and 14% of the respondents were 60 years and above.

Notably, close to 80% of the survey participants felt that during the time of claim or an emergency, a hard copy of the policy issued by the insurance company would be preferable.

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In view of the policyholders’ preference for a hard copy, Mehul Desai, former President and current Managing Committee member of Bombay Master Printer's Association (BMPA) has urged IRDAI for restoring Section 4.

“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,” he said.

An insurance policy is a contract between the insurance company and the insured individual. It 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.

As per regulation 4 of Insurance Regulatory and Development Authority (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.