E-insurance Becomes Mandatory: Policy Holders To Get All Policies In Electronic Format From April 1
From April 1, 2024, the Insurance Regulatory and Development Authority of India (Irdai) has mandated that all insurance policies should be issued in electronic form. An individual's insurance plans will show collectively in his e-Insurance Account (eIA). This rule comes into effect with the introduction of the "Protection of Policyholder Interest" Regulation 2024, which aims to enhance convenience, security, and tracking of policies by policyholders.
What Is an eIA or Electronic Insurance Account?
Simply put “eIA” means an electronic insurance account for maintaining insurance policies issued in electronic form. “e-insurance policy” or “electronic insurance policy” shall mean a digitally signed policy document evidencing the insurance contract issued to the policyholder by an insurer in an electronic form.
Benefits For Policy Holders
With e-insurance, policyholders can manage their insurance plans, through secure online accounts called e-Insurance Accounts (EIAs). All policies must now be issued electronically, which will be linked to this account, regardless of the application method the customer uses to get the policies. This move eliminates the need for cumbersome paperwork and allows users to view, download, and manage all policies in this single window. The move also reduces the risk of document loss. Converting existing policies to e-insurance is free of cost for policyholders.
Siddharth Singhal, Business Head - Health Insurance, Policybazaar.com said, "We believe this shift towards mandatory e-insurance is a customer-friendly initiative. With all insurance policies, be it life, pension, health or general, eligible to be held in the electronic format and accessible through an e-Insurance Account, managing insurance plans becomes more convenient than ever before. "
"It simplifies the process of updating details such as a change in address or contact number etc., across multiple policies. It also facilitates a seamless communication channel between insurers and policyholders to settle claims, ensuring a smoother experience overall, " Singhal added.
Shashank Chaphekar, CDO, ManipalCigna Health Insurance said, "This step will enhance customer experience, and provide a centralized platform for managing all insurance policies seamlessly. The development marks a pivotal moment towards serving customers better in this digital age. We believe this move will also reinforce trust in the insurance industry as a whole."
Nitin Mehta, Chief Customer Officer and Head – Marketing, Digital and Online Sales at Bharti AXA Life Insurance:
"IRDAI's new guidelines represent a significant step forward for life insurance in India. Starting April 1, 2024, all new life insurance policies will be issued electronically (e-insurance) irrespective of the mode in which the proposal form is received – physical or in online unless specifically the policy is desired by the customer in a physical format. Any changes made in EIA by the policyholder will automatically reflect across all the linked policies. This shift also benefits insurers by streamlining processes, making things more efficient. Hence this is a win-win situation for both – the customers and insurers."
