As we step into a new era of insurance practices, India’s insurance landscape is undergoing significant transformations. The Insurance Regulatory and Development Authority of India (IRDAI) has recently introduced new insurance policy rules in India that impact policyholders across the country. Let’s delve into these changes and understand how they affect you.

1. e-Insurance 

Starting from April 1, 2024, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced a significant change. All new insurance policies must now be issued in an electronic format, a process known as e-insurance. Let’s break it down:

What is e-insurance?

E-insurance allows policyholders to manage their insurance policies digitally using computers or smartphones. Instead of dealing with paper documents, policyholders can now purchase new policies and store digital copies in an e-Insurance Account (eIA).

How does it work?

Think of an e-Insurance Account as a two-way street. It facilitates seamless communication between insurance companies and policyholders. Just like investors hold shares in a demat account, policyholders can now access their insurance policies electronically.

2. KYC (Know Your Customer) Requirement

Effective January 1, 2023, there’s a new rule for purchasing insurance. It’s called KYC, which stands for Know Your Customer. Here’s what you need to know:

Why KYC?

When applying for new insurance (whether it’s health, auto, travel, or home insurance), policyholders must provide relevant documents about themselves. This rule applies across various insurance categories, including life, health, and general insurance.

3. Say Goodbye to Paper Policies

Starting April 1, 2024, insurance policies will be issued exclusively in digital form. The IRDAI’s directive ensures that insurance companies provide policies only in electronic format, similar to how shares are electronically delivered.

These changes aim to streamline processes, reduce paperwork, and enhance accessibility for policyholders.