There is a big change in the Indian insurance sector that came into effect on April 1, 2024. It revolves around how you hold your insurance policies. If you opt to purchase insurance starting April 2024, your insurer will issue policies in digital format. This complies with the regulations set forth by the Insurance Regulatory and Development Authority of India, mandating insurers to provide policies in dematerialised form for the protection of policyholders’ interests.
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The choice was introduced in 2013, and currently, four insurance repositories – CAMS Repository, Karvy, NSDL Database Management (NDML), and Central Insurance Repository of India – enable the establishment of e-insurance accounts.
Now, the regulator has mandated that insurance companies must exclusively issue digital policies starting April 1st.
“Irrespective of whether the proposal is received in electronic form or otherwise, every insurer shall issue insurance policies only in the electronic form,” IRDAI said.
What is E-insurance?
An e-insurance policy is a document that serves as evidence of an insurance contract. It is issued digitally by an insurer, signed in compliance with relevant legal provisions, and delivered in electronic format directly to the policyholder or through a registered insurance repository platform.
E-insurance Accounts (eIA): Just like you hold shares in a demat account, you will now hold your new insurance policies electronically in an eIA. This is mandated by IRDAI under the “Protection of Policyholder Interest” Regulation 2024.
How to open an e-account?
At the point of purchasing a new policy, an e-insurance account can be established, wherein the policy will subsequently be credited. In these instances, insurers will manage the entire procedure for facilitation.
Existing physical insurance policies can be converted into electronic form as well. You can initiate the process by downloading the requisite forms from the portals of insurance repositories to open an e-insurance account. Submission of KYC documents like Aadhaar and PAN to the repository is necessary.
DigiLocker: You can also complete the KYC process online utilising Aadhaar or DigiLocker.
Insurance in physical form
This choice will remain accessible, allowing you to retain older policies in physical format. Furthermore, IRDAI has stated that exemptions may be granted for new policies under exceptional circumstances.
You have the option to request a physical copy when completing the proposal form for purchasing insurance. If you opt not to do so initially, you can still request your insurer to send physical documents to you at any time.
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