In a major digital push, insurance companies will now have to issue all new policies only in electronic format starting April 1, 2024. The Insurance Regulatory and Development Authority of India (IRDAI) has made it compulsory for insurers to provide policies digitally and to facilitate this, insurance can now be held in e-insurance accounts.
What are these e-insurance accounts?
E-insurance accounts involve storing insurance policies digitally rather than retaining physical copies. Most private insurers already offer this option to customers but now it will become the only choice for new policies. Existing policyholders also have the option to convert their physical documents into electronic form.
How will this change things?
The new rules state that insurers must issue all policies, whether applied for online or offline, solely in digital format. While customers can still request physical copies, buying insurance will now involve setting up an e-insurance account to hold the policy documents electronically.
What if you want physical copies?
Anyone wishing to hold on to older physical policies can continue doing so. You also have the right to insist on a printed version of new policies at the time of purchase.
How do you set up an e-insurance account?
An account is automatically opened when buying a new policy. Existing physical policies can also be dematerialized into the electronic format.
Is there any fee for e-insurance accounts?
No, accounts are provided free of cost by insurance repositories that manage the system. Major players include CAMS, Karvy, NSDL and Central Insurance Repository of India.
With insurance now migrating completely online, e-insurance accounts are set to become the norm for Indian customers. While providing convenience, the shift also aims to modernize compliance.
