Will your insurance policies be safe in your e-insurance account?

Insurance regulator IRDA has now made it mandatory to store insurance policies in electronic format. Now, insurance companies will have to issue digital insurance policies, making it necessary for all policyholders to open an Electronic Insurance Account (EIA). Here, you can store your insurance policies in digital format and even transfer your old policies into it. This step by IRDA will benefit many policyholders.

Let’s decode this in following 9 points:

First, what is an E-Insurance Account? An Electronic Insurance Account (EIA) functions just like a demat account. You can store all your insurance policies in a digital format in this account. The maintenance of this account will be handled only by IRDA-approved insurance repositories. Policies deposited in this account can be accessed with a single click.

Second, what are Repositories? Insurance repositories function just like share depositories or mutual fund transfer agencies. They are licensed by IRDA, and will maintain the data of policies issued by insurance companies in e-format, also termed as electronic or e-policies.

Third, where to apply? IRDAI has assigned the responsibility of E-Insurance Accounts to 4 insurance repositories. This means that currently, 4 repositories will store your policies in digital format. The repositories are CAMS Insurance Repository, Karvy, NSDL Database Management and Central Insurance Repository of India (CIRI). These repositories already offer the facility to open E-Insurance Accounts in the country. Insurance policies will be deposited digitally with these agencies, operating similar to demat accounts for shares.

Fourth, how to open an account? You can open an E-Insurance Account in two ways. To open it online, you need to choose one of these four repositories. Then, visit their website and click on “Open e-Insurance Account”. Proceed by entering your PAN or Aadhaar number to complete the process. For offline account opening, download the form from the repository’s website. Fill it out and submit it along with required KYC documents to your insurance company’s branch. You can also send the form via courier or through the post office. The insurance company will forward your application to the relevant repository for verification, and your EIA will be opened within seven days.

Number 5, what about existing policies? It is advisable to convert your existing policies into digital format. This will save you from the hassle of managing multiple papers and will keep all your insurance policies in one place. This conversion can be done both online and offline. In the online process, you need to enter the insurance company’s name and your policy number. For the offline process, you need to fill out a form and submit it to your insurance company’s branch. You will receive information via email or SMS once the process is complete.

Number 6, is nomination mandatory? Yes, it is mandatory to register a nominee in the E-Insurance Account. In the event of the policyholder’s demise, the nominee can claim the account and access it as required.

Number 7, what are the documents required to open an E-Insurance Account? Well, you will need passport-sized photos, PAN card, and Aadhaar card. A copy of a canceled cheque may also be required for verification.

Number 8, what about the charges? There are no charges for opening an E-Insurance account through repositories. Repositories are also not charging any fee for maintaining this account. However, if you open an EIA through an insurance company, they may charge a fee of Rs. 50-100.

And Number 9, what are the benefits? After opening an E-Insurance Account, policyholders will enjoy several benefits. You can track all your policies at once and get a comprehensive overview of renewals and maturity dates. You won’t have to worry about losing or damaging your policy documents. You can operate this account from anywhere and at any time.

In this way, an E-Insurance Account can prove to be helpful in relieving you from paperwork and various hassles. If you have existing policies, go on and convert them into e-format soon.