LIC is considering starting its own depository for insurance dematerialisation, sources said.”LIC’s insurance depository could be a separate subsidiary. This would reduce demat expense for LIC. They would also earn income via dematerialising insurance policies for other insurers,” sources said.
LIC is also planning to ask IRDAI to relax timeline for dematerialisation of new and old insurance policies.
The insurance regulator has mandated dematerialisation of new insurance policies by December 2022. The insurance regulator has also asked insurance companies to dematerialise existing/old policies by December 2023.
As far as the expense incurred on dematerialization of policies for LIC is concerned, LIC has around 75 percent market share when it comes to total insurance policies in the industry. It issues nearly two crore policies each year.
