soft tissue (insurance)
From 1st April 2024, the insurance policy has been issued in demat form to every person purchasing insurance. Till now the policy was issued in hard copy form by the insurance companies. Now, according to the new rules, the companies are fully prepared to make the insurance policy available to the policy holders in a digital format. (E-Insurance Policy)
In India, the work of supervising the insurance market is done by 'IRDA'. Irda keeps changing the rules from time to time and it is necessary for the policy holders to pay attention to it. Now as per the new change from April 1, 2024, the insurance policy will be made available to the person buying the insurance policy in e-form i.e. soft copy will be made available. This soft copy will be made available in demat format. There will be no hard copy of it. If you are not aware of these new rules, let's find out!
The policy will be available in demat format
From 1st April 2024, the insurance policy has been issued in demat form to every person purchasing insurance. Till now the policy was issued in hard copy form by the insurance companies. If a person was claiming for insurance, he had to submit the certificate in hard copy form to the insurance company. Now, according to the new rules, the companies are fully prepared to make the insurance policy available to the policy holders in a digital format. The insurance regulatory body introduced this system to facilitate the insurance business. At the same time, insurance companies will also benefit from these rules.
What is e-insurance?
E-insurance in short means digital form of insurance policy. Of course, insurance companies will provide e-insurance to customers. The insurance policy will be in digital form. For this, customers have to open a demat account. Insurance policy related documents will be transferred from insurance companies to this demat account. The insured is required to open an e-insurance account i.e. E-IA in the form of a demat account. Because, without it the insurance company will not sell the new insurance policy to the customers.
All insurance in e-format
Not only life insurance, but all types of insurance including health insurance, accident insurance, auto insurance, general insurance will now be offered to consumers in e-format. For this, customers have to open an 'E-IA' i.e. Electronic Insurance Account. Customers can open their accounts on the online platforms of CAMS Insurance Repository Karvi, NSDL Database Management and Central Insurance Repository of India. To open an insurance account create a login ID on any of these platforms and can open the account after uploading the KYC related documents. Moreover the insurance company has also provided the facility of opening such account on its portal; But these accounts will be opened only in the 'in-repository' on the insurance company's website.
What are the benefits of e-insurance?
Maturity of any insurance policy is after a long period of time and during this period there is a high possibility of a person missing the documents related to the policy. Sometimes the documents fall somewhere, sometimes they are damaged by water, and sometimes they are gnawed by mice. In that case the policyholder cannot claim on the basis of bad documents. Due to the digital format, customers will not have the stress of maintaining the policy. Getting an insurance policy in e-form will eliminate such problems and free you from the hassle of completing paper formalities. Another advantage of this is that if the policy documents are updated by the companies after buying the e-insurance, it can be easily changed in your electronic insurance account. Also, if you want to change the name, phone number, address, that can also be done. Another advantage is that all the documents for the claim will be available at one place. While making an online claim, the electronic insurance account link or specific number in the demat account can be provided along with the application.
Free E-I account facility
There is currently no charge for opening an e-I account; However, these types of accounts may soon be charged. Only KYC related documents need to be submitted by the policy buyer to the insurance company. After providing these documents, the insurance advisor or agent will automatically carry out the account opening process. All you have to do is tell him which 'repository' you are willing to open an account with. (E-Insurance Policy)
