Insurers are now mandated to issue insurance policies solely in digital form from April 1, in accordance with the regulations set forth by the Insurance Regulatory and Development Authority of India (IRDAI). This shift aligns with the protection of policyholders’ interests and promotes the dematerialization of policies, akin to the electronic format adopted for shares since 2013.
Four insurance repositories – CAMS Repository, Karvy, NSDL Database Management (NDML), and Central Insurance Repository of India – facilitate the creation of e-insurance accounts, offering a digital platform to store and manage policies. These accounts empower policyholders to purchase, renew, request services, and file claims seamlessly.
While policyholders still retain the option to maintain physical copies of their policies, IRDAI allows exemptions under exceptional circumstances. Individuals can opt for physical documentation by specifying their preference during the proposal stage or request physical copies from insurers after policy issuance.
Opening an e-insurance account is a straightforward process, either during the purchase of a new policy or by converting existing physical policies. Policyholders can download the necessary forms from insurance repository portals, complete KYC requirements online using Aadhaar or DigiLocker, and consolidate all their policies under one account.
The transition to e-insurance accounts offers several advantages, including centralized policy management, timely renewal reminders, and streamlined updates to personal information across policies. Moreover, it eliminates the need for repetitive KYC processes and ensures easy access to policy benefits for family members through appointed authorized representatives.
Overall, the move towards digital insurance policies enhances convenience, accessibility, and efficiency for policyholders and the insurance ecosystem alike.
