Electronic insurance is now mandatory for all insured people: what this means for you |  Personal finance

The Insurance Regulatory Authority of India (Irdai) is making things digital! From 1 April 2024 all insurance policies will be issued electronically. Here’s a breakdown:

What is e-insurance?

Click here to follow our WhatsApp channel

Manages your insurance plans (life, health, etc.) electronically in a secure online account called an Electronic Insurance Account (EIA).

Why is it good?

No more paperwork! View, download and manage all policies in one place.

Less risk of losing documents than physical copies.

Update the details once in your EIA and it will be reflected in all linked policies.

Easily track policy details and renewal dates.

The Insurance Regulatory and Development Authority of India (Irdai) recently introduced the ‘Protection of Interests of Policyholders’ Regulations 2024, effective from April 1, 2024. This regulation mandates conversion of all insurance policies to electronic format . In an email interview with Business Standard, Vivek Bengani, CEO of CAMS Repository, sheds light on the implications of e-insurance, addressing concerns ranging from operational security to fighting scams.

1. Is ownership of an e-insurance policy mandatory for all insured persons?

“It is now mandatory for all policies to be issued in electronic format, regardless of the mode of application. This initiative not only provides convenience but also significantly increases the security and management of policyholders’ portfolios,” Bengani said.

He highlighted that most private life insurance companies and non-life insurers have accepted the electronic insurance account (eIA) mechanism, actively encouraging policyholders to digitize their policies.

2. Several customers have reported receiving emails from PolicyGenie via CAMS Repository containing sensitive information such as PAN, phone number, and name. Can you confirm the authenticity of these communications and advise on appropriate steps recipients should take?

In response to growing concerns about email scams, Bengani reassures policyholders: “PolicyGenie by CAMS Repository emails are part of our efforts to integrate policyholders onto the eIA platform, strictly adhering to the communication protocol defined by Irdai. Our robust security mechanism ensures customer data is protected at all times.”

3. What are the warning signs for a fake email? What should people do to protect their data?

As an insurance store, CAMS Rep will never send any sales or marketing communications to EIA holders to incite them to purchase insurance or pay money. The EIA and the basic services offered are free for the contractor. CAMS Rep (or any IR) has the mandate to maintain policies in digital format and help policyholders get maximum benefit from their insurance portfolio. We do not call our customers to ask for personal information.

If customers notice any deviation from these policies, they can and should immediately connect to our helpline or support email to let us know. CAMS Rep keeps detailed records of all communications sent to its customers and is periodically audited by Irdai to ensure compliance with security standards.

4. What are the main benefits of switching to an electronic insurance policy from traditional paper policies?

The move to e-insurance is not just about digital conversion, but also about significantly improving the policyholder experience. Bengani explains: “Having an e-policy offers unmatched security and the convenience of managing an entire insurance portfolio in one place.”

“We have seen many cases where policyholders have moved out of India and found this mechanism very useful. Many insurers were able to connect with their policyholders and settle the uncollected amounts as they could find updated contact details via the eIA,” he said.

5. How does consolidating insurance policies into an electronic insurance account benefit the policyholder in terms of management and oversight?

By consolidating insurance policies into a single electronic insurance account, policyholders gain a previously unattainable level of oversight and management. “Our platform, Bima Central, is a testament to the ease of use and management it offers policyholders,” adds Bengani.

“Our 7 million customers will have access to Bima Central, the first integrated and aggregated platform for the realization of benefits. It allows VIA holders to view their consolidated benefits (across all policies), renew policies, update holders and bank accounts on their policies in real time with insurers. As insurers are integrated, there are new use cases such as policy lending, premium financing and claims preparation being added to the platform, ” he has declared.

6. Could you outline the security measures taken to protect policyholder information within the electronic insurance system?

Addressing security concerns, Bengani assures: “We are an ISO 27001 certified company, therefore we ensure that all security controls are maintained, following all necessary regulations and conditions. The data stored in our servers is encrypted. All security measures security control are tested regularly. This includes two-factor authentication for access, regular VAPT Tests (Vulnerability Assessment Penetration Testing) to evaluate emerging cyber threats, dark traces, etc., to ensure that our servers, network , data and applications are always secure. Strong internal control and governance in place through a Council-approved cybersecurity and crisis management policy. In fact, CAMSRep was the first insurance store to complete its cybersecurity audit according to latest cyber security guidelines from Irdai in 2023.”

7. Are there any cost implications for policyholders when converting existing policies to e-insurance policies?

“Opening an e-insurance account and converting to e-policies is offered at no cost to the customer. Our goal is to make the transition as simple and cost-effective as possible for all policyholders,” he said.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *