What Is E-Insurance? Unique Perks Every Policyholder Should Know

Insurance policies are essential for financial protection. India’s market stands among the fastest-growing globally. It ranks tenth in life insurance plans and fourth for general protection across Asia¹. 

Swiss-Re Institute's January 2024  report forecasts that, from 2024 to 2028, India will see a 7.1% annual rise in premium volumes, surpassing global averages (2.4%), emerging markets (5.1%), and advanced economies (1.7%)². This notable increase signals the country's expanding insurance penetration, solidifying its role in the international market.

Here is the growth of life and non-life premiums over the years as per the annual report report released by the IRDAI-Insurance Regulatory and Development Authority of India in December-2023³:

With growing awareness of insurance, reflected in rising premiums, taking the traditional route can be stressful because:

• Tedious Paperwork: Sorting through physical forms can feel never-ending.
• Slow Response Times: Approvals and claims often take longer than expected.
• Limited Accessibility: Finding important information during urgent moments can be difficult.
• Complicated Changes: Any modification involves filling out multiple forms, which leads to inefficiency.

The traditional way may feel endless and slow. That is where e-insurance comes in. It facilitates paperless policy management. Everything is digitised and easily accessible.

Curious how e-insurance can simplify your experience? Keep reading to learn more.

What Is E-Insurance?

E-insurance is a digital shift in how we handle insurance. It replaces paper-based systems with online access, allowing you to store all your insurance information in a single, secure digital space—called an e-Insurance Account (eIA). With this account, your life, health, or general insurance plans are safely kept in one location, available whenever you need them.

Each individual receives a personal eIA identifier for all future insurance-related activities. This ID links your different policies, regardless of the provider, into one streamlined system. No more juggling forms or logging into various platforms—everything is connected in one place.

Key Features

1. Unified Storage: Every coverage plan, whether health or good life insurance plans, is housed in one digital repository. Say goodbye to scattered documents.
2. Unique eIA Identifier: A single ID that connects all your policies, simplifying updates or purchasing new coverage.
3. One-Time KYC: Your KYC verification is done once, eliminating the need for repetitive paperwork in the future.
4. Anytime Access: Log in securely anytime to view or modify your coverage details, with complete protection of your sensitive information.

How Does E-Insurance Policies Work?

1. Setting Up Your eIA

The process begins with opening an account and receiving a unique eIA number. This system is operated by authorised Insurance Repositories, certified by IRDAI, such as:

• NSDL Database Management Limited 
• Central Insurance Repository Limited 
• SHCIL Projects Limited
• Karvy Insurance Repository Limited
• CAMS Repository Services Limited

2. Adding Existing And New Plans

Paper-based policies including life insurance cover or non-life covers, can be digitised and linked to your account. New ones are automatically issued in electronic format when your eIA number is provided during purchase.

3. Using Your Account

Your account provides:

• Unified Overview: View all your coverage, premiums, and terms in one dashboard.
• Online Payments: Handle premium payments directly through your eIA without hassle.
• Quick Updates: Modify contact details once, applying the change across all your plans.
• Real-Time Claim Tracking: Keep tabs on your claim progress instantly.
• Instant Access: Download any document from your digital account.

4. Extra Features

Get reminders for upcoming payments, compare coverage options, and stay organised with everything in one secure platform.

How To Open An E-Insurance Account?

Following is a short guide to walk you through the procedure.

Step 1: Pick An Insurance Repository

Begin by choosing from the four IRDAI-approved repositories, as mentioned above. Download the application form from their respective websites. For example, let us consider NSDL⁴. 

Step 2: Fill in Your Information

Input your contact details, including your name, address, and phone number. Make sure everything is accurate. It can be filled online.

You may also have the option to fill in the details on the physical form and submit it to an authorised person. 

Step 3: Provide KYC Proofs

Attach self-attested copies of the following:

• ID Proof: PAN, Aadhaar, or Voter ID
• Address Proof: Driving licence, Aadhaar, or ration card
• Date of Birth Proof: PAN, domicile certificate, or ration card
• A passport-sized photo and a cancelled cheque are also required.

Step 4: Submit Your Application

You can hand in your application online or at a branch, depending on the repository’s options.

Once approved, you will receive your eIA number and login credentials to access and manage your policies securely.

Is It Mandatory To Buy Insurance Policies In Electronic Format?

Yes, beginning April 1-2024, all new insurance in India must be issued electronically. This shift, mandated by the IRDAI, applies across all channels, both online and offline. Physical copies will no longer be provided⁵.

You will not be able to choose between digital and paper formats anymore—everything will be issued electronically. This change, however, comes with no added costs. Policyholders may set up an electronic insurance account for free.

However, the IRDAI may grant exemptions to this requirement if it benefits policyholders or supports the industry's development. Insurers must offer an option within the proposal form for those preferring a paper document. Even when a policy is issued digitally, a hard copy must be made available if the customer requests one. 

This mandatory shift to electronic policies is aimed at streamlining the insurance experience. It simplifies management while ensuring that your personal data remains well-protected.

Can You Convert Your Existing Insurance Policies Into E Insurance Policies?

Yes, transitioning your traditional insurance documents into e-format is possible and straightforward. This process makes sure that all your coverage is digitally organised.

First, complete the necessary conversion form, providing key details like your policy number, insurer's name, and your eIA number. If you have not set up an eIA yet, you can apply for it at the same time, following the process as noted earlier.

Once the form is filled out, hand it in along with your KYC documents to your insurer or an approved Insurance Repository. After verification, you will receive confirmation via SMS or email, indicating that your policy has been digitised. Plus, this conversion is also free of charge. 

Conclusion

Switching to e-insurance brings a new level of convenience and security to handling your coverage. By moving your policies into a digital format, you gain easier access and better control. Whether you're creating a new e-Insurance Account or converting existing coverage, the process is simple and free. 

As of April 2024, all policies will be digital, ensuring streamlined processes and stronger data protection for all policyholders. With this change, the way your insurance is set up and managed in the present era has significantly improved.

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Frequently Asked Questions On E-Insurance

1. What is meant by e-insurance?

E-insurance is a system where your coverage details are stored digitally. Instead of physical documents, everything is kept in an e-Insurance Account (eIA). This online platform lets you view, update, and track different types of coverage like life or health plans. It removes the need for paperwork, offering a convenient way to oversee all your important policy information.

2. How to get e-insurance?

To get started with e-insurance, choose an authorised insurance repository such as NSDL or CAMS. Download the application, fill in your details, and attach necessary KYC documents like ID and address proof. Submit everything online or at a branch. Once your application is processed, you will receive a unique account number and login credentials to manage your policies digitally.

References

1. IBEF, accessed from: https://www.ibef.org/industry/insurance-presentation
2. India Budget, accessed from: https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf#page=123
3. IRDAI, accessed from: https://irdai.gov.in/industry-trends
4. NSDL, accessed from: https://nir.ndml.in/index.htm
5. IRDAI, accessed from: https://tinyurl.com/irdaipdf

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