Starting this financial year, viz April 1, 2024, Insurance Regulatory and Development Authority of India (IRDAI) has directed the Insurance companies to issue digital policies exclusively in alignment with the Protection of Policyholders’ Interests regulations.
IRDAI Mandate – Transition to Dematerialised Policies
As per the new rules, the policies that are issues by the Insurer should be in dematerialised form and must be facilitated by four insurance repositories: CAMS Repository, Karvy, NSDL Database Management (NDML), and the Central Insurance Repository of India.
As per the notification on March 20, 2024, titled “Protection of Policyholders’ Interests, Operations, and Allied Matters of Insurers Regulations, 2024”, IRDAI stated that “Every insurer shall have in place a Board-approved policy for insurance policies issued in electronic form.”
Below is a guide to open an e-Insurance Account (eIA) and also the walkthrough of converting existing policies to electronic format:
What is an e-Insurance?
E-insurance means those insurance policies that are in a digital format. These are stored in a demat account known as an e-Insurance Account (eIA).
Through this e-Insurance Account, all kinds of insurance (life, health, and general) can be managed.
How to open an eIA?
- From the preferred insurance repository’s website, download the eIA opening form.
- Fill the form and submit it with KYC documents to the nearest approved person or insurance company branch.
- Form shall be verified and application shall be processed
- The account shall be created within 7 days and users will be then able to set their password using the e-Insurance Account number and login ID.
Documents required to open an eIA:
- Recent passport-size photograph
- PAN card
- Date of birth document
- Identity proof
- Address proof
How to convert an existing policy to an e-Insurance account?
- Fill out all the details like policyholder’s name, policy number, e-Insurance account number, and insurance company name in the Policy Conversion Form.
- Visit the nearest insurance company branch or approved person, and submit the form along with the e-Insurance Account Opening Form. You can also choose to courier it to NSDL Insurance Repository, if it deems fit to requirement.
- Once the conversion process is done, the individuals will then receive a SMS as well as email which will confirm the credit of the policy to their e-Insurance Account.
Key Considerations:
- Opening an e-Insurance account or conversion is free of charge.
- In order to view the portfolio of insurance policies, Authorized representatives can access the account.
- Once the policy is converted, the physical certificate of the same becomes invalid.
With the aim to digitize insurance policies for easier management as well as easier access across companies and segments, IRDAI has stepped up and mandated the issuance of digital policies.
