Taking insurance is always considered a safe and sound financial decision. This market is regulated by IRDA in India, so you should keep an eye on the changes from time to time. As this rule is going to be implemented from April 1, 2024, it will now be mandatory for all new policy holders.
IRDA has released a new notification few days back. According to which, from now on any new insurance policy that will be announced, the policy holders will have to compulsorily keep with themselves in electronic i.e. demat form. The insurance company will also declare it in both e-insurance forms, although the customer will have the option of getting a physical policy. E-insurance policies can be maintained in the same way people maintain their shares.
Companies have to make this arrangement
Every insurance company has to publish a valid policy to make e-insurance policy available in demat form. IRDAI has also said that irrespective of the form in which the insurance companies receive the application for insurance, such as online or offline, the insurance companies have to declare the policy in electronic format.
This rule will become mandatory from 1 April 2024. For this, the insurance companies have to compulsorily provide an alternative to the physical document along with the e-policy.
How will e-policy benefit you?
Your e-insurance account will also be opened to maintain the e-insurance policy. This will give you many benefits. First, you won’t need to keep your policy documents for long. This will also reduce the burden and hassle of paper work.
Not only this, customers still have to maintain their separate policies despite taking insurance online, which can now be kept at one place in the e-insurance account. This account will act as a bridge between both insurance companies and policy holders.
If you change any of your personal information in this account, it will also be automatically updated in your insurance policy. Opening an e-Insurance account will be very easy and will also be free.
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