Irdai pushes for e-insurance accounts, ease of use for customers

The Irdai has urged companies to open e-insurance accounts (e-IA) for customers, which would become the first phase of dematerialisation of insurance policies.

Bima Sugam, a platform where all selling, servicing and settling of claims can be done, is also on the cards, according to reports.

e-Insurance Accounts would have all insurance policies that a customer has subscribed, helping him or her manage their portfolio seamlessly.

The idea of e-IAs has been on the discussion table between Irdai and the insurance industry for some time, so as to ensure higher customer convenience. This week, the regulator held consultations and sought views on the matter.

Also read: Health insurance claims not contestable if premium paid for 8 yrs: Irdai

“The regulator has invited views of the industry on the issue of dematerialisation of insurance policies. Irdai officials met the industry on Wednesday and explained the benefits of this facility, however, they have not mandated it yet,” Vignesh Shahane, MD & CEO, Ageas Federal Life Insurance was quoted as saying by Business Standard.

“The idea is to get every new customer an e-IA with an insurance repository and do the same for existing customers within 12 months. Irdai sees great benefit in moving customers into e-IAs. This has great benefit for all the stakeholders in the ecosystem, including the regulator. Irdai is looking at a sophisticated portal where the customers can buy insurance policies and get their claims settled and will be useful for all the stakeholders,” Shahane said.

The process called dematerialisation ensures converting physical documents into a modifiable online format. The initiative though started by Irdai a few years back has not taken off due to operational challenges.

With an e-IA account, changes in contact details get auto-updated in all your policies across all life insurers.