The implementation of e-Insurance Account (eIA) in India, effective from April 1st, 2024, marks a significant milestone in the digitization of the insurance sector. An eIA serves as an electronic repository for policyholders to conveniently and securely manage their insurance policies online. 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.
IRDAI has issued a guideline stating that all insurance policies must be issued in electronic form. This means that from April 1st, all policies will be required to be in electronic format, and individuals will need to open an Electronic Insurance Account (EIA) to store their policies. This initiative, introduced by the Insurance Regulatory and Development Authority of India (IRDAI), aims to streamline the insurance process, enhance accessibility, and promote transparency in the industry.
The decision to make electronic insurance mandatory was initially announced in 2013, and since then, many insurance companies have been issuing policies in electronic form. However, it was not made compulsory until recently. Due to technical issues, the deadline for implementation was extended multiple times. Finally, it has been decided that from April 1, 2024, all policies will be issued in electronic form.
The eIA system allows policyholders to store all their insurance policies from multiple insurers in a single electronic account, eliminating the need for maintaining physical policy documents. Through a network of insurance repositories authorized by IRDAI, individuals can open e-Insurance Accounts with minimal documentation and manage their policies digitally. Some of the repositories in India include CAMS Karvy NSDL, NDML, and the Central Insurance Repository of India.
How to get an e-insurance Account (eIA)
To get an eIA, the policyholder needs to download and fill the eIA from the chosen repository. The form needs to be submitted along with KYC documents to an approved person or can be couriered to the repository from where you are applying
What are the Documents required to open an eIA?
The following documents are required to open an eIA apart from the filled up form
Recent Passport Size Photograph
PAN Card
Address Proof
Identity Proof
Proof of Date of Birth
How long does the eIA application process take?
After you complete KYC and send your application, it will be verified and processed. The verification process normally takes a week and the eIA would be operations within seven working days after the application
Converting existing policies to e-Policies
Fill the policy conversion form with the policyholder’s name, e-Insurance account number, and the company name. This should be submitted to the concerned insurance repository or the agent allocated to you. After conversion, the policyholder will be let known through SMS and email
Why EIA was required
The Electronic Insurance Account (EIA) was introduced in India to address several key challenges and inefficiencies present in the traditional paper-based insurance system. While electronic form is now mandatory, customers can still request a physical copy of their policy if they prefer. However, it is important to note that the default mode of issuance will be electronic. The shift to electronic insurance offers several advantages,
Simplification and Convenience: The traditional method of maintaining physical insurance policies involved managing multiple documents from various insurers, which could be cumbersome and prone to loss or damage. EIA simplifies this process by allowing policyholders to store all their insurance policies electronically in one central account, making it easier to access, manage, and track their insurance holdings.
Reduction of Paperwork: With EIA, the need for physical paperwork associated with insurance policies is significantly reduced. Policyholders no longer have to deal with stacks of documents for different policies, as everything is stored digitally. This not only saves time but also contributes to environmental sustainability by reducing paper consumption.
Enhanced Accessibility: EIA enables policyholders to access their insurance policies anytime, anywhere, through a secure online platform. This level of accessibility is particularly beneficial for individuals who may need to access their insurance information urgently, such as during emergencies or while traveling.
Improved Transparency and Accountability: By consolidating all insurance policies into a single electronic account, EIA provides policyholders with a comprehensive view of their insurance holdings. This transparency helps policyholders better understand their coverage, premiums, and benefits, fostering trust and confidence in the insurance industry.
Facilitation of Digital Transactions: EIA facilitates various digital transactions related to insurance, such as premium payments, policy renewals, and claims processing. This not only streamlines the insurance process but also enhances security and efficiency by reducing the reliance on physical documentation and manual paperwork.
Promoting Financial Inclusion: EIA plays a crucial role in promoting financial inclusion by making insurance products more accessible to underserved and remote populations. Through digital channels, individuals can open EIA accounts with minimal documentation and access a wide range of insurance offerings tailored to their needs.
Overall, the introduction of EIA in India represents a significant step towards modernizing the insurance sector, improving customer experience, and promoting digitalization and financial inclusion initiatives across the country.This move towards electronic insurance offers convenience and efficiency for both customers and insurance companies.