Very few people are aware that, like shares, mutual funds, bonds, etc., we can hold our insurance policies too in the electronic form.
This, by the way, happened around three years back.
Till recently, this option was optional. However, henceforth (most) insurance policies would be issued in the electronic format only.
Hence, you will have to open an electronic Insurance Account (eIA), and hold your policies electronically in the same.
The e-insurance policy issuance is becoming mandatory from Oct 1, 2016 onward.
Salient aspects of the notification (Issuance of e-Insurance Policies) Regulations, 2016, issued by the Insurance Regulatory and Development Authority of India (IRDAI), are discussed below.
Pure Term Policy (without Return of Premium): Sum Assured exceeding Rs.10 lakhs or Annual Premium exceeding Rs.10,000
Other Than Pure Term Policies (including those with Return of Premium): Sum Assured > Rs.1 lakh or Annual Premium > Rs.10,000
Pension Policies: Annual Premium > Rs.10,000
Immediate Annuity Policies: Annual Pension > Rs.10,000
Individual Health Insurance Policies: Sum Assured > Rs.5 lakh or Annual Premium > Rs.10,000
Motor Policies (Retail): ALL
All Other General Insurance Policies (except Motor): Sum Assured > Rs.10 lakh or Annual Premium > Rs.5,000
Personal Accident (Individual): Sum Assured > Rs.10 lakh or Annual Premium > Rs.5,000
Individual Travel Insurance (domestic): Sum Assured > Rs.10 lakh or Annual Premium > Rs.5,000
Individual Travel Insurance (overseas): ALL
b) Except for the policies specifically exempted by the IRDAI, electronic policies issued directly to the policyholders shall also be issued in the physical form. The physical form should be an exact replica of the electronic form of the policy.
c) However, electronic insurance policies issued through the Insurance Repositories need not be issued in physcial format too.
d) Only the digitally signed electronic insurance policies shall be deemed as compliant.
e) Policyholders, who wish to convert their existing physical policies, can furnish a request to their insurance company.
f) Insurance companies are permitted to offer discounts, as approved by the IRDAI, in the premium rates for such electronically issued insurance policies.
ii. The form should have the provision to capture the electronic Insurance Account (eIA) number of the prospective buyer, interested in a new insurance policy.
iii. A physical version of the e-proposal form should also be made available. When the new policy buyer furnishes his information in this physical form, the insurance company should arrange to convert the details furnished into electronic version.
iv. If the prospective policy buyer does not have an eIA number, the insurance company should facilitate opening of his e-Insurance Account and get an eIA number allotted to him.
v. Details furnished electronically by the prospective policy buyer in the e-propsal form, should be electronically signed.
As is evident from the aforesaid regulations, you may have to open an e-Insurance Account... sooner than later.
This is an electronic account, opened with an Insurance Repository. These include:
- NSDL Database Management
- Central Insurance Repository
- SHCIL Projects
- CAMS Repository Services
- Karvy Insurance Repository
All your insurance policies will be held in this account, in the electronic from. It is just like a demat account, where your equity share portfolio is held in the electronic form.
For more details, read Now Insurance Policies go Demat.
Briefly,
- You can open an e-Insurance Account thru' your insurer or directly with an Insurance Repository
- As mentioned, there are five IRDAI-approved insurance repositories
- eIA is completely free of any charges or costs
- Even your existing physical policies can be converted into electronic ones
This, by the way, happened around three years back.
Till recently, this option was optional. However, henceforth (most) insurance policies would be issued in the electronic format only.
Hence, you will have to open an electronic Insurance Account (eIA), and hold your policies electronically in the same.
The e-insurance policy issuance is becoming mandatory from Oct 1, 2016 onward.
Salient aspects of the notification (Issuance of e-Insurance Policies) Regulations, 2016, issued by the Insurance Regulatory and Development Authority of India (IRDAI), are discussed below.
Criteria for issuing Insurance Policies in the electronic form
Following criteria has been laid down, where the insurance companies will have to issue electronic policies.Pure Term Policy (without Return of Premium): Sum Assured exceeding Rs.10 lakhs or Annual Premium exceeding Rs.10,000
Other Than Pure Term Policies (including those with Return of Premium): Sum Assured > Rs.1 lakh or Annual Premium > Rs.10,000
Pension Policies: Annual Premium > Rs.10,000
Immediate Annuity Policies: Annual Pension > Rs.10,000
Individual Health Insurance Policies: Sum Assured > Rs.5 lakh or Annual Premium > Rs.10,000
Motor Policies (Retail): ALL
All Other General Insurance Policies (except Motor): Sum Assured > Rs.10 lakh or Annual Premium > Rs.5,000
Personal Accident (Individual): Sum Assured > Rs.10 lakh or Annual Premium > Rs.5,000
Individual Travel Insurance (domestic): Sum Assured > Rs.10 lakh or Annual Premium > Rs.5,000
Individual Travel Insurance (overseas): ALL
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| I opened my e-Insurance Account and digitized all my insurance policies. Have you? |
Issuance of electronic Insurance Policies
a) Electronic Insurance Policies may be issued, either directly to the policyholders, or through a registered Insurance Repository.b) Except for the policies specifically exempted by the IRDAI, electronic policies issued directly to the policyholders shall also be issued in the physical form. The physical form should be an exact replica of the electronic form of the policy.
c) However, electronic insurance policies issued through the Insurance Repositories need not be issued in physcial format too.
d) Only the digitally signed electronic insurance policies shall be deemed as compliant.
e) Policyholders, who wish to convert their existing physical policies, can furnish a request to their insurance company.
f) Insurance companies are permitted to offer discounts, as approved by the IRDAI, in the premium rates for such electronically issued insurance policies.
e-proposal form
i. Each insurance company should create an electronic proposal form, which shall be similar to the physical form approved by the IRDAI. This would help capture all the desired information electronically, and hence enable easy processing and servicing.ii. The form should have the provision to capture the electronic Insurance Account (eIA) number of the prospective buyer, interested in a new insurance policy.
iii. A physical version of the e-proposal form should also be made available. When the new policy buyer furnishes his information in this physical form, the insurance company should arrange to convert the details furnished into electronic version.
iv. If the prospective policy buyer does not have an eIA number, the insurance company should facilitate opening of his e-Insurance Account and get an eIA number allotted to him.
v. Details furnished electronically by the prospective policy buyer in the e-propsal form, should be electronically signed.
As is evident from the aforesaid regulations, you may have to open an e-Insurance Account... sooner than later.
This is an electronic account, opened with an Insurance Repository. These include:
- NSDL Database Management
- Central Insurance Repository
- SHCIL Projects
- CAMS Repository Services
- Karvy Insurance Repository
All your insurance policies will be held in this account, in the electronic from. It is just like a demat account, where your equity share portfolio is held in the electronic form.
For more details, read Now Insurance Policies go Demat.
Briefly,
- You can open an e-Insurance Account thru' your insurer or directly with an Insurance Repository
- As mentioned, there are five IRDAI-approved insurance repositories
- eIA is completely free of any charges or costs
- Even your existing physical policies can be converted into electronic ones
- Benefits of eIA include no paperwork, consolidated holding, one-time KYC documentation, ease in making changes, no risk of loss / damage, automatic reminders, etc.
Go get one now...
Go get one now...
