Digital insurance policies have started in the new financial year, starting April 1. Let’s understand how to draw this policy and its benefits.
In the financial year that started on April 1, 2024, IRDA changed consumer interest regarding insurance policies, which we will understand today. From April 1, 2024, it will be mandatory to give all types of insurance policies in digital form (as shares are given as demat). IRDA’s advisory will be applicable for life insurance and general insurance policies. Such digital policy issuance will be through four repositories, namely Karvy, CAMS, NDML, and the Central Insurance Repository.
All new insurance policies will now be offered digitally in one of four repository e-insurance accounts. For this, while buying a new policy, you need to inform which of the four insurance repositories you want your e-insurance account at, according to which the concerned insurance company opens your e-insurance account. If you have an e-insurance account, you have to inform the concerned insurance company while taking such a new policy. The new insurance policy is recorded in digital (electronic) form in the E-insurance account details that you submit.
Open an E-insurance account on your own
You can also open the insurance account yourself (on any one of the above four insurance repositories), for which this forum is available on the website of the concerned repository, along with the details of the documents required for KYC completion. Open the account either online or offline. However, a person can open only one e-insurance account under the same name. Opening under a joint name isn’t allowed. It doesn’t cost anything to open an account.
You can convert all existing insurance policies (e.g., multiple life insurance policies, auto insurance, and health insurance policies) in digital format under this E-insurance account. The option is available on the website of the respective repository.
E-insurance account benefits:
- Since all your insurance policies are digitally in the same account, there is no possibility of getting lost/torn/damaged.
- Information about all your policies is readily available in one place.
- The change in nominee, address, or phone number is done in one place, i.e., E-insurance account. The updates are automatically reflected simultaneously in all policies.
- You don’t have to complete a new KYC for every new policy.
- It doesn’t cost anything to open an account.
However, all policyholders should keep these benefits in mind, open a new E-insurance account as soon as possible, and secure all their policies by taking advantage of the available facilities.
