e-insurance is an account for keeping an e-copy or digital copy of an insurance policy online. It will be mandatory to hold an e-insurance account with an insurance repository by the policyholder. This means just like a Demat account you will have another account called an e-insurance account. The e-insurance account will be used to hold multiple insurance policies in electronic format. This account is also known as eIA account.
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Basic criteria for issuing e-policy
Sum Assured –
- Pure Term plan, personal accident, and travel policy and all general insurance policies with a sum assured greater than 10 Lac will be issued electronically.
- All retail motor insurance policies and individual overseas travel insurance policy irrespective of the sum assured will be issued electronically.
- Health insurance policy with a sum assured greater than 5 lac will be issued electronically.
- ULIP and Endowment plan with a sum assured greater than 1 lac will be issued in electronic format.
Premium Amount –
- Pure Term plans, ULIP, Endowment plans, pension policies, return of premium policies, and health insurance policies with premium amounts equal to or greater than Rs. 10,000 will be issued in electronic format.
- General Insurance policy and domestic travel policy with a premium amount equal to or greater than Rs.5000 shall be issued electronically.
In order to issue an e-policy you need to open an e-insurance account.
How to open an e-insurance account?
You can open your e-insurance account easily by contacting an insurance repository. IRDA has approved four different institutes as an insurance repository.
- NSDL
- CDSL
- KARVY
- CAMS
Step -1 – Download the e-insurance account (eIA) opening form from the respective insurance repository. Alternatively, you can fill e-insurance account opening form online.
Step -2 – Enclose KYC documents such as your PAN card, Aaadhar card, address proof, and identity proof along with your application form.
Step 3 – Submit the e-insurance account opening form along with KYC documents to the authorized center of the insurance repository.
Step-4 – An authorized person from the center will verify your application and KYC documents along with the original.
Step-5 – The insurance repository will open your e-insurance account and communicate the following information to the account holder.
- e-insurance account number
- USER ID
- Password
- Method to access the account
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How to convert your insurance policy to e-policy?
Once your e-insurance account is opened you can convert your old physical policy to electronic format.
- Fill policy conversion form.
- Please ensure that separate Policy Conversion Forms are filled for insurance policies of different insurance companies.
- Submit the policy conversion form to the nearest insurance policy office or insurance repository center. Alternatively, you can also email/courier this form.
- No need to submit the original policy document along with this form.
- On conversion, you will get an SMS about the policy credited to your e-insurance account.
Benefits of e-insurance account
Benefits to Account Holder
- All insurance policies are available in a single place in an electronic format.
- Easy to access policy details anytime anywhere using the internet.
- Single consolidated view online.
- Premium alert and insurance payment online.
- No fees/charges are applicable to the account holder.
- Better monitoring of policy to prevent laps of policy.
- No worry about the loss of policy documents.
Benefits to Insurance Companies
- Cost reduction and increase in reach through insurance repository touch points.
- Reduction in activity and cost related to printing and dispatching a policy.
- Easy manageability and search due to electronic record.
Benefits to Agent
- The workload of agents will be reduced as they need to remember the premium paying details of the customer.
- As premiums can be paid online they need not visit physically for premium payments.
Do you think the initiative of converting policy from physical form to electronic will be beneficial?
