New Insurance Rule: Mandated E-Insurance in Demat Format for all new policies w.e.f 1st April 2024

Insurance policies are mandated to be held in electronic format, similar to how investors hold shares in a demat account, starting 1st April 2024.

The Insurance Regulatory and Development Authority of India (IRDAI) stated in a March 20, 2024 notification titled “Protection of Policyholders’ Interests, Operations, and Allied Matters of Insurers Regulations, 2024” that “Every insurer shall have in place a Board approved policy for insurance policies issued in electronic form…”

“Irrespective of whether the proposal arrived in electronic form or otherwise, every insurer shall issue insurance policies only in the electronic form,” the agency added.

According to IRDAI, “To issue policies in electronic format, insurers must meet two conditions: a) Provided that the authority, upon being satisfied that it is in the interests of policyholders and the orderly growth of the insurance industry, allows such exemptions to this requirement; and b) Provided further that the insurer must mandatorily seek the prospect’s choice in the proposal form for availing a physical policy document.”

E-insurance, as the name implies, refers to the purchase of insurance coverage in digital format. Your electronic insurance policies will be maintained in a demat account known as the e-Insurance Account, or eIA. An e-Insurance Account allows you to manage all of your insurance plans, including life, health, and general.

An e-Insurance Account provides multiple benefits. To begin, you are no longer required to keep a record of your policy documentation. Less paperwork and trouble when filing claims. Even if many customers have already switched to online insurance, they must keep separate records for each policy. Under the e-Insurance Account, all the policy documents will be kept in one place. e-Insurance Account is simple to use, handy, and saves time and effort.

An e-Insurance Account serves as a two-way street for insurance firms and policyholders. If you have changed any details, such as your contact number or address, you can do so in eIA, and all of your insurers will take note of it. Similarly, if your insurer has any updates for you, you can view them in eIA. As a result, maintaining your policy will be much easier.

The establishment of e-Insurance accounts in India is facilitated by four insurance repositories: CAMS Insurance Repository, Karvy, NSDL Database Management (NDML), and Central Insurance Repository of India.