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De-clutter Your Insurance: Unveiling the Power of eIA in India

04 Apr 2024 - Tushar
Reading time about 5 minutes

Imagine a world where you don’t need bulky folders overflowing with insurance policy documents. What if you could access all your life and general insurance policies in one secure, digital location?

That’s the power of the Electronic Insurance Account (eIA), a revolutionary concept that’s transforming insurance management in India. P2P Lending

What is an eIA?

Think of an eIA as a demat account for your insurance policies. Just like shares are held electronically in demat accounts, your eIA stores your insurance policies digitally with Insurance Repository. This eliminates the need for physical documents, making it easier to manage and access your insurance information.

What is Insurance Repository?

An Insurance Repository is basically a company that’s been officially approved by IRDAI to set up a secure system for storing insurance policies electronically. Imagine it as a safe specifically designed for digital insurance documents. This way, you don’t have to worry about keeping track of paper copies!

Here is a list of some of the existing Insurance Repositories

  • National Securities Depository Limited (NSDL) Insurance Repository (NIR)
  • Central Insurance Repository Limited (CIRL)
  • Karvy Insurance Repository Limited (KRIL )
  • CAMS Insurance Repository Services Limited (CAMSRep)

Why is eIA Important?

Here are some compelling reasons why eIA is a game-changer for Indian insurance policyholders:

  • Convenience: No more misplaced or damaged policy documents! With eIA, your policies are securely stored online, accessible anytime, anywhere.
  • Consolidated View: Gone are the days of juggling multiple policies from different insurers. eIA provides a single platform to view all your life and non-life insurance policies in one place.
  • Simplified Updates: Updating your contact details becomes a breeze. Any changes made in your eIA automatically reflect across all your linked policies.
  • Security: eIA offers enhanced security compared to physical documents. The risk of loss or tampering is significantly reduced.
  • Transparency: With eIA, you have easy access to policy details, terms, and conditions, promoting better understanding of your coverage.

Opening an eIA - It’s Easier Than You Think!

There are two main ways to open an eIA:

  • When Buying a New Policy: If you’re purchasing a new insurance policy after April 1, 2024, your insurer will typically create an eIA for you with your consent during the application process.
  • Direct Approach: You can directly approach an Insurance Repository (IR) to open an eIA.

Opening an eIA is completely free. There are no charges for opening, maintaining, or updating your eIA information.

To open an eIA, you’ll need to be 18 years or older and provide KYC documents such as your PAN card and address proof. Minors cannot have separate eIA accounts. Also eIA can not be opened on joint names.

Importance of Authorized Representative in eIA

When you set up your e-insurance account (eIA), you can choose someone to be your Authorized Representative. This person can take care of your account if you can’t anymore, for example, if you pass away or are unable to manage it yourself.

  • Your Authorized Representative can inform the insurance company if you die and provide them with proof of death.
  • They can also request to close your account once any claims have been settled.
  • You can change your Authorized Representative by filling out a simple form.
  • While it’s allowed to have the same person as both your Authorized Representative and your nominee (the person who receives your insurance benefits), it’s best to choose different people.

Additional Points to Remember

  • Approved Persons (APs) like banks or insurance agents can assist you with opening an eIA or dematerializing existing policies.
  • Premium Payments: While your eIA stores your policy details, some insurance repositories like CAMSRepository may give option to make payment for some insurance policies. However you can continue to make premium payments through authorized channels of the respective insurance company.

What is Approved Person?

Think of an Approved Person (AP) as a helper for your e-insurance account (eIA).

  • Insurance Repository (IR) is the company that keeps track of all your eIA information.
  • An AP acts as a middleman between you and IR.
  • If you open your eIA with an AP’s help, they can handle tasks for you, thus acting as a “Point of Service”.
  • But IR is always in charge of keeping your account safe and secure.

Anyone who can act as a stockbroker or insurance agent can become an AP after registering with IR.

What happens to the Paper based insurance policy?

Obtaining a paper-based insurance policy in India might be difficult after April 1, 2024. Here’s the breakdown:

  • New Policies: For new insurance policies purchased after April 1, 2024, insurers are mandated to issue them electronically in your eIA by default. So, getting a paper copy might not be the standard option.
  • Existing Policies: You can likely still access a paper copy of your existing policies (acquired before April 1, 2024) from your insurer. However, there might be a processing fee involved.

Here’s why paper policies might be phased out

  • Convenience and Security: eIA offers a more convenient and secure way to manage your policies electronically.
  • Environmental Benefits: It reduces paper usage and promotes a more eco-friendly approach.
  • Efficiency: eIA allows for faster access to policy information and simplifies updates.

eIA - A Stepping Stone Towards a Simpler Insurance Journey

The eIA system represents a significant step forward for insurance management in India. By embracing this digital approach, you can streamline your insurance experience, improve accessibility, and ensure the security of your valuable insurance information. So, ditch the paperwork and unlock the benefits of eIA today!