Gone are the days when a rider or driver had to worry about not carrying a physical copy of motor insurance. With the introduction of the digital format of motor insurance, a driver /rider can now carry the policy on their smartphone.
Every person owning a vehicle must obtain third party insurance. This insurance is mandatory because in case of damage to life or property caused by the vehicle, monetary obligations are taken care of. This policy must be available at all times with the driver or rider or else he has to pay a heavy fine.
Now the Insurance Regulatory and Development Authority of India has approved the digital format of motor insurance (e-vahan Bima). Currently, Telangana state has adopted the digital format and has instructed it’s traffic department to recognize digital format as valid proof.
2.Features of motor insurance
● The insurance contract is issued to the policyholder directly by the insurer or through the platform of registered insurance repository
● If the policy is issued by the insurer directly then they are required to send the hard copy to the policyholder
● The digital policy will be sent through email to the policyholder with all the details of motor insurance and Quick Response Code.
● In case the policyholder does not have an email id, the details will be sent through SMS.
● Quick Response Code is like a barcode that contains details of the vehicle and motor insurance policy.
● The soft copy of the insurance will be sufficient evidence of insurance.
● In case the policyholder does not have a smartphone, then the printout of the policy and copy of QR code will be sufficient
● The existing policyholders will be provided with a portal through which an electronic version along with QR code can be obtained.
● When a person has borrowed a vehicle then a copy of the QR code is sufficient.
3.Benefits of motor insurance
● The digital policy ensures higher compliance due to the ease of obtaining it as it is literally delivered at the doorstep.
● The digital policy will also decrease the chances of fraud.
● It is also cost-effective as there will be the elimination of revenue leakages.
● It is also easy to carry as does not require a paper format.
● Another major advantage is that the new policies will be issued with the QR code. The QR code will hold all the information about the vehicle and the traffic police can find insurance information about the vehicle from the central database maintained by the Insurance Information Bureau of India (IIB)
● Another important benefit is that this promotes reducing the use of paper. Hence it is also an environmentally friendly option
● Insurance companies will have reduced costs due to the digital format and hence they will pass on this benefit to the policyholder.
4.Procedure for obtaining e-Vahan Bima
There is no special procedure for obtaining digital motor insurance. The policyholder has to only provide the email ID and opt for digital insurance. The QR code will be given in the policy document.
IRDA is encouraging all states to adopt this new change. A country wide initiative is taking place so as to bring convenience to vehicles moving between states.
A mobile App will also be launched to facilitate viewing the policy and also take printouts of the policy and hold it handy in case of mobile discharges.
Measures are being taken to ensure the safety of the data maintained with Insurance Repository/ Insurers/IIB
Steps are also taken to ensure there is no manipulation of records.
The QR code will be there on the digital policy. How can this code be used? The ‘QR code scanner’ should be downloaded from the play store. The image of the QR code must be scanned, all the details of the policy, date of payment, the renewal date will be seen.
Truly India is moving towards Digitalization. E-vahan bima is a step towards this initiative ensuring convenience to everyone.