Many times people forget their insurance policy hardcopies in their homes while driving their vehicle, or while unexpectedly visiting a hospital etc. This might lead to paying fine to police or calling up home to know the same details, which is a tedious job. You might have felt the same that if the same policy is available in digital form, you will be able to access it on your mobile or laptop and it will be convenient to you. Recently started Digital India initiative was getting a lot of applause from both public and corporate world. Taking it to next level issuing insurance policy in electronic mode has been made mandatory by the Insurance Regulatory and Development Authority of India (IRDAI) from October 1, 2016.
The rule states that e-insurance needs to be issued to anyone paying an annual premium of Rs 10,000 and above or the sum insured is Rs 10 lakh or more.
In case of health insurance policy, the sum assured needs to be Rs 5 lakh or more apart from annual premium of Rs 10,000 and above. For general insurance policies, e-insurance is needed if anyone is paying an annual premium of Rs 5000 and above or has a sum insured of Rs 10 lakh or more. The rule is applicable irrespective of the policies bought online for offline.
With the government pushing all services to digital, the adoption of Electronic Issuance of Policies would also improve. People who have understood the benefits of policies issued through the IR system are not asking for physical copies of insurance documents anymore as the digital format copy can be accessed anywhere through mobile, laptop etc. It has difficulties in explaining the benefits in areas where the adaptation of technology is low.
In order to access these policies in digital form the customer needs to create an account called e-Insurance Account (eIA). An e-Insurance Account (eIA) which is lot like demat account helps the customer to keep all his electronic insurance policies from any insurer in electronic mode. Opening an e-Insurance Account (eIA) keeps his/her electronic policies safe, convenient and easy to manage. From general to life insurance, for all type of insurance policies one e-Insurance account is needed which comes with separate account number, login Id and password for each account holder to access their account. For existing insurance policies, one can convert their policies into electronic mode by requesting for conversion along with applying for opening an e-insurance account. While buying a new insurance policy, it is best to open an eIA at the same time and go for an electronic policy.
How and where to open this e-Insurance account?
If e-IA is not available with the customers, the insurance company can facilitate the process to open the account for the customers through insurance repository system. The four repositories are – CAMSRep, NSDL Database Management, Central Insurance Repository, and Karvy Insurance Repository.
Opening an e-insurance account is free of cost. It is more convenient, and does not require paperwork.
This is one of the few steps taken by government to convert a service which requires lot of paperwork into a digital service. We can say that this is the beginning stage for Digital India and we can expect many more changes in both Insurance sector and technological enhancements in India.