New Delhi: Many changes will take place along with the kickstart of the new financial year. One of them is changes in new insurance policy. Starting April 1, 2024, purchasing insurance will undergo a digital transformation as insurers are now mandated to issue policies solely in digital form.
This move, in line with the Insurance Regulatory and Development Authority of India’s (IRDAI) Protection of Policyholders’ Interests regulations, aims to streamline insurance processes and enhance policyholder convenience. (Also Read: New Tax Rules From April 1: Did You Know About Basic Exemption Limit? Check Here)
What Is E-Insurance Accounts?
E-insurance accounts involve the issuance and holding of policies in digital format. While many private insurers already offer e-insurance accounts, policyholders now have the option to purchase and manage their policies digitally through designated insurance repositories. (Also Read: 5 Financial Changes Coming In April 2024: Here’s All You Need To Know)
What New It Brings?
With the implementation of the new regulations, insurance companies are obligated to issue policies exclusively in electronic format. IRDAI’s final regulations stipulate that insurers must issue all policies digitally, regardless of whether the proposal is submitted electronically or through other means.
Is There An Option For Physical Policies?
Despite the shift towards digital issuance, policyholders still have the choice to hold their policies in physical form. They can opt for physical copies while filling out proposal forms for insurance purchases, ensuring flexibility for those who prefer traditional documentation.
How One Can Purchase An E-Insurance Account?
Opening an e-insurance account is a straightforward process and can be done at the time of purchasing a new policy. Additionally, existing physical insurance policies can be converted into electronic form, enabling policyholders to manage all their policies digitally.
What Is The Cost Of Switching To E-Insurance Account?
The transition to digital insurance comes at no additional cost to policyholders. Opening an e-insurance account is free of charge, offering a cost-effective and convenient way to access and manage insurance policies.