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IRDAI has made E-insurance mandatory from 1st April, Know what is this


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India’s insurance regulator, the Insurance Regulatory and Development Authority of India (Irdai), has introduced new regulations that will require all insurance policies to be issued electronically starting from April 1, 2024. This transition to e-insurance aims to provide policyholders with convenience, increased security, and improved policy management.

What is E-Insurance?

E-insurance refers to the practice of managing insurance plans electronically through a secure online account called an e-Insurance Account (EIA). This account allows policyholders to store and access their insurance policies, including life and health insurance, in one centralized location.

Benefits of E-Insurance

The shift to e-insurance offers several advantages over traditional paper policies:

  1. Elimination of paperwork: With e-insurance, there is no need for physical copies of insurance policies. Instead, policyholders can view, download, and manage all their policies digitally from their e-Insurance Account.
  2. Reduced risk of document loss: Unlike physical copies that can be easily misplaced or damaged, e-insurance policies are securely stored online, minimizing the risk of losing important documents.
  3. Efficient policy updates: By updating details once in their e-Insurance Account, policyholders can ensure that the changes reflect across all linked policies. This streamlines the process of managing policy information and reduces the need for multiple manual updates.
  4. Easy tracking of policy details: With e-insurance, policyholders can easily track important information such as policy details and renewal dates. This helps them stay informed and ensures timely policy renewals.

Implications and Security Measures

Vivek Bengani, CEO of CAMS Repository, highlights the implications of e-insurance and addresses concerns related to operational security and scams. According to Bengani, the new regulations make it compulsory for all policies to be issued in electronic form, regardless of the application method. He emphasizes that e-insurance not only offers convenience but also significantly enhances the security and management of policyholder portfolios.

To address concerns about email scams, Bengani reassures policyholders that emails from PolicyGenie by CAMS Repository are part of their efforts to onboard policyholders onto the e-Insurance Account platform. These emails adhere strictly to the communication protocol defined by Irdai, and the company takes robust security measures to protect customer data at all times.

CAMS Repository, as an Insurance Repository, does not engage in sales or marketing communication to e-Insurance Account holders to entice them to purchase insurance or make payments. The e-Insurance Account and basic services offered are free of charge for policyholders. The repository’s role is to maintain policies in digital form and help policyholders maximize the benefits from their insurance portfolio.

To ensure security, CAMS Repository follows necessary norms and conditions, including being an ISO 27001 certified company. They encrypt data stored in their servers, regularly test security control measures, and have strong internal control and governance through a Board approved cybersecurity and crisis management policy. In fact, CAMS Repository was the first Insurance Repository to complete the cybersecurity audit as per Irdai’s latest infosec guidelines in 2023.

Enhanced Policyholder Experience

The transition to e-insurance not only involves the digital conversion of policies but also aims to significantly improve the policyholder experience. Holding an e-policy provides unmatched security and the convenience of managing an entire insurance portfolio in one place.

Through CAMS Repository’s platform, Bima Central, e-Insurance Account holders have access to an integrated and aggregated benefit realization platform. This platform allows policyholders to view their consolidated benefits across policies, renew policies, update nominees, and manage bank accounts associated with their policies in real-time with insurers. As insurers join the platform, new use cases like policy loans, premium financing, and claim readiness are being added.

Seamless Transition and Cost-Effectiveness

Opening an e-Insurance Account and converting to e-Policies are offered at no cost to the customer. CAMS Repository aims to make the transition to e-insurance as seamless and cost-effective as possible for all policyholders.

If policyholders notice any deviation from the established norms or have any concerns, they are encouraged to immediately connect with CAMS Repository’s helpline or support email. The repository maintains detailed records of all communications sent to customers and undergoes periodic audits by Irdai to ensure compliance with security standards.

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