Most of the new insurance policies henceforth will be issued only in electronic format. Policies will be issued instantly in digital format and even existing policies can be converted into an e-insurance one. Every policyholder will require an e-insurance account for this. The new rule has come into effect from October 1.
The e-insurance account will be akin to a demat account for shares and mutual funds. All types of insurance policies—life, health, motor, travel—will be stored in digital format and one can renew policies or make changes to any policy online. It is mandatory for every insurer to issue electronic insurance policies in disaster-prone and vulnerable areas as specified by Insurance Regulatory and Development Authority of India (Irdai). Every insurer will issue electronic insurance policies directly to the policyholder or through the registered insurance repositories. Even existing policy holders can avail the facility of electronic insurance by registering with the insurer.
