Compulsory E-Insurance For All Policyholders: Here's What You Need To Know

India's insurance regulator, Irdai, has introduced the "Protection of Policyholder Interest" Regulation 2024, effective 1 April 2024, making it compulsory for all insurance policies to be issued electronically. This move aims to streamline insurance management through e-Insurance Accounts (EIAs), offering several benefits over traditional paper-based policies.

E-Insurance enables policyholders to manage their insurance plans, including life and health policies, securely online. Key advantages include the elimination of paperwork, centralised policy management, reduced risk of document loss and streamlined updates across linked policies. Moreover, policyholders can easily track policy details and renewal dates through their EIAs.

Vivek Bengani, CEO of CAMS Repository, highlighted the implications of this transition, emphasising its significance for policyholders. He confirmed that holding an e-insurance policy is now compulsory for all policyholders, underscoring the convenience and enhanced security it offers. Most private life and non-life insurers have embraced the EIA mechanism, actively promoting digital policy holdings.

Responding to concerns regarding email scams, Bengani clarified that emails from PolicyGenie by CAMS Repository adhere strictly to Irdai's communication protocol and prioritize customer data protection. He urged policyholders to report any suspicious communication deviating from these norms.

Transitioning to e-insurance offers unparalleled security and convenience, allowing policyholders to manage their entire insurance portfolio effortlessly. Bengani emphasised the benefits of e-policies, citing instances where policyholders abroad found them particularly useful.

Consolidating insurance policies into EIAs offers policyholders unprecedented oversight and management capabilities. Bengani highlighted Bima Central, an integrated platform enabling policyholders to view consolidated benefits, renew policies, and update details in real-time.

Security measures within the e-insurance system include ISO 27001 certification, encryption of stored data, regular vulnerability assessments, and two-factor authentication for login. CAMS Repository maintains robust internal controls and governance to ensure data security.

Converting existing policies to e-insurance policies is free of cost, aiming to facilitate a seamless and cost-effective transition for all policyholders.