Apparently the E-Vahan Bima is a motor policy that will be issued in digital form by the insurer, which will come with a quick response (QR) code. This particular QR code will contain all the details of the policy and the traffic police authority can scan it to fetch all the details of the policy. These information will be available for the authorities to be taken from the database of the insurer or from the central database of Insurance Information Bureau.
To test out this policy, the Insurance Regulatory Authority has asked the insurance companies to issue insurance policies, particularly in the state of Telangana, in electronic form along with the physical form from December 01, 2015 onwards. On purchase or renewal of insurance policy, the digital format of the policy will be sent to the policy holder. The digital format can be read on smartphones. If the policyholder doesn't have an e-mail, an SMS will also be sent to the policyholder with the details of the insurance policy.
Now what's interesting is that if the documents are digitized it will be difficult to use a fraud motor insurance policy as it can be easily verified using QR code. Moreover insurers claim that the digital format will help in saving some cost as well, which could be passed on to the consumers.
Commenting on the same Sanjay Datta, chief of underwriting and claims at ICICI Lombard General Insurance Company said, "It will be convenient for the policy holders as they don't have to carry the insurance policy in physical form and it may result into some cost reduction eventually as the insurance companies will also save on the cost of sending the documents to the policyholders."
