Anshul
12 Apr 2024
"Streamlining Insurance: Converting Physical Policies to Electronic Format for Convenience and Accessibility"
While it's not mandatory for individuals with existing physical insurance policies to convert them into electronic format, doing so would enhance convenience in managing their insurance portfolio.
The Insurance Regulatory and Development Authority of India (IRDAI) has mandated that all new insurance policies issued from April 1, 2024, be in electronic form. Under this directive, policyholders can access their insurance documents digitally, with physical copies available only upon request.
This initiative mirrors the system of holding shares in digital form within a demat account.
Similar to how investors open demat accounts to manage their shares, policyholders now need to establish an e-Insurance Account (eIA) to store and access their insurance policies electronically.
The transition to e-insurance promises an array of benefits for policyholders, ranging from heightened convenience to more security measures.
With all insurance policies eligible for electronic storage and accessible through an e-insurance account, managing insurance plans becomes more streamlined and efficient.
Furthermore, digitisation is expected to facilitate smoother communication between insurers and policyholders, thereby enhancing the claims settlement process and overall customer experience.
For policyholders looking to convert their existing physical policies into electronic format, the process involves these steps:
Fill conversion form
Policyholders are required to fill out a conversion form providing essential details such as the policyholder’s name, policy number, e-insurance account number, and company name.
Submission of form
The completed conversion form can be submitted along with the eIA opening form to the insurance branch or an approved person.
Confirmation
Upon successful conversion, policyholders receive confirmation via SMS and email, indicating the completion of the process.
It's important to note that opening an eIA and converting policies incur no charges, and the physical policy certificate becomes invalid once the conversion is completed.
To initiate the process of opening an eIA, policyholders must download and fill the eIA form from their chosen repository and submit it along with Know Your Customer (KYC) documents, including a recent passport-size photograph, Permanent Account Number (PAN) card, proof of date of birth, identity proof, and address proof.
Once the application is received, it will undergo verification and processing, with the eIA becoming operational within seven days of submission.