IRDAI directs insurers to issue e-policies from April 1: What it means and how to open e-insurance account

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New Delhi: As part of a continued effort to ease consumer experience, insurance regulator IRDAI has directed insurance companies to issue only e-policies starting from April 1, 2024. Policyholders will also be required to hold the e-policy with them at all times. Further, hospitals and clinics are duty-bound to accept the policy in this dematerialised for, according to the IRDAI notification.

What is e-insurance policy?

Insurance companies are now reportedly required to compulsorily issue the policy in an electronic format, irrespective of whether they received a paperless application or a physical form-based application.

To be sure, insurers can now also offer the option of providing a physical policy document along with the e-policy, the ET reported.

How will e-insurance policy affect you?

E-insurance policies are likely to benefit the consumer the most since there will be no storage hassle and it can always be readily available in case of an emergency. In the demat form, policyholders can store the policy on their phone as well.

Customers will also receive an e-insurance account which will, allow them to store multiple policies in one place and access them readily without the risk of forgetting where the physical copies are stored.

The e-insurance account will also provide the option of updating personal details, which will easily reflect across insurance policies held by the consumer. The e-insurance account will be opened for free.

This will also help to reduce the cost and speed of policy issuance for companies while ensuring the accuracy of details.

How to open e-insurance account?

From April 1., 2024, an e-insurance account will be opened for all policy buyers by their choice of insurer. As mentioned above, this will be opened free of cost.

The following entities are authorised by IRDAI to open eIA or e-insurance accounts:

NSDL Database Management
Central Insurance Repository
Karvy Insurance Repository
CAMS Repository Services

Here’s how to open an e-insurance account:

Visit the website of any of the above insurance repositories
Fill a form
Attach PAN, address proof, date of birth proof, ID proof
The documents may be submitted to any branch of your concerned insurer
The e-insurance account creation can take up to 7 days.

How to convert existing policy into e-insurance policy?

Policyholders can convert their existing policy into-insurance policy by following these steps:

Fill the policy conversion form
Fill a separate form for different insurance companies
Submit the form to the nearest branch of your policy company
The form can also be couriered to an insurance repository
It can also be scanned and emailed to the concerned repository
On receiving the form, the insurer will convert the policy into electronic format
An SMS will be sent to the policyholder confirming the change
Policy conversion form can also be submitted while opening eIA

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