New Delhi: Insurance regulator IRDA has made it mandatory for all new insurance policies to be held in Demat format like shares of companies with effect from December 2022. Also, IRDA has asked all insurance companies to convert existing and old policies to the digital format by December 2023. As per the directive, the insurance companies will bear the cost of this change and the policyholders will not have to pay any fees for the same.
Under this, policyholders will have an e-insurance account like a Demat account, in which they will be able to keep all the insurance policies of themselves and their family members together in the insurance repository of their choice. Insured will be able to keep all their health insurance, vehicle insurance, and life insurance safe in this. With the digitization of insurance policy details, banks will be able to give loans easily based on the insurance policy. IRDA has introduced a draft Bima Sugam digital platform for insurance claims and other services.
· The policyholder will be allowed to view all his life, vehicle, and health insurance policies in the e-insurance account.
· The e-insurance account will store all types of insurance policies, transactions, and other information including documents in one place.
· This will enable the policyholder to know the date of commencement of the policy, maturity status, nomination, address, terms, and conditions.
· There will be no need to keep a physical copy of the Insurance Policy Bond.
· The premium payment of the insurance will be transferred directly to the insurance company. The chances of fraud will be greatly reduced.
