E-insurance now mandatory for all policyholders: What it means for you
New Delhi, Mar 27, 2024
In an 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 the battle again
India's insurance regulator (Irdai) is making things digital! From April 1, 2024, all insurance policies will be issued electronically. Here's a breakdown:
What is e-insurance?
It's managing your insurance plans (life, health, etc.) electronically in a secure online account called an e-Insurance Account (EIA).
Why is it good?
No more paperwork! View, download, and manage all policies in one place.
Less risk of losing documents compared to physical copies.
Update details once in your EIA and it reflects across all linked policies.
Easily track policy details and renewal dates.
The Insurance Regulatory and Development Authority of India (Irdai) recently introduced the "Protection of Policyholder Interest" Regulation 2024, effective from April 1, 2024. This regulation mandates the conversion of all insurance policies into electronic format. In an e-mail 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 the battle against scams.
1. Is holding an e-insurance policy compulsory for all policyholders?
"It is now compulsory for all policies to be issued in electronic form, irrespective of the application method. This initiative not only offers convenience but also significantly increases the security and management of policyholder portfolios," Bengani said.
He pointed out that the majority of private life insurance companies and non-life insurers have accepted the electronic Insurance Account (eIA) mechanism, actively encouraging policyholders to digitise their policy holdings.
2. Several customers have reported receiving emails from PolicyGenie by CAMS Repository containing sensitive information such as PAN, phone number, and name. Can you confirm the authenticity of these communications and advise on the appropriate steps recipients should take?
In response to the rising concerns over email scams, Bengani reassures policyholders, "The emails from PolicyGenie by CAMS Repository are part of our efforts to onboard policyholders onto the eIA platform, adhering strictly to the communication protocol defined by Irdai. Our robust security mechanism ensures the protection of customer data at all times."
3. What are the red flags for a fake mail? What should people do to protect their data?
As an Insurance Repository, CAMS Rep will never send any sales or marketing communication to eIA holders enticing them to purchase insurance or pay any money. eIA and basic services offered are free of charge for the policyholder. CAMS Rep (or any IR) has the mandate to maintain policies in digital form and help policyholders realise the maximum benefit from their insurance portfolio. We do not call our customers seeking personal information.
If customers see any deviation from these norms, they can and should immediately connect with our helpline or support email to let us know. CAMS Rep maintains detailed records of all communications sent to its customers and is periodically audited by Irdai to ensure security standards are complied with.
4. What are the primary advantages of transitioning to an e-insurance policy from traditional paper-based policies?
The transition to e-insurance is not merely about digital conversion but also about significantly improving the policyholder experience. Bengani explains, "Holding an e-policy provides unmatched security and the convenience of managing an entire insurance portfolio in one place."
"We have seen many instances where policyholders move out of India and find this mechanism so handy. Many insurers have been able to connect to their policyholders and settle unclaimed amounts as they could find updated contact details through eIA," he said.
5. How does the consolidation of insurance policies into an e-insurance account benefit the policyholder in terms of management and oversight?
With the consolidation of insurance policies into a single e-insurance account, policyholders gain a level of oversight and management previously unattainable. "Our platform, Bima Central, is evidence of the ease of use and management it offers to policyholders," Bengani adds.
"Our 7 million customers will have access to Bima Central, which is a first-ever integrated & aggregated benefit realisation platform. It allows the eIA holders to view their consolidated benefits (across policies), renew policies, update nominees, and bank accounts on their policies in real-time with insurers. As insurers are getting onboarded, there are new use cases like policy loan, premium financing, claim readiness getting added to the platform," he said.
6. Could you outline the security measures in place to protect policyholders' information within the e-insurance system?
Addressing security concerns, Bengani assures, "We are an ISO 27001 Certified Company, so we ensure that all security controls are maintained, following all necessary norms and conditions. Data stored in our servers are encrypted. All security control measures are tested on a regular basis. This includes two-factor authentication for login, regular VAPT Testing (Vulnerability Assessment Penetration Testing) to assess emerging cyber threats, dark trace, etc., to ensure that our servers, network, data, and applications are secure at all times. Strong internal control and governance in place through a Board approved cybersecurity and crisis management policy. In fact, CAMSRep was the first Insurance Repository to complete the cybersecurity audit as per Irdai’s latest infosec guidelines 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 are offered at no cost to the customer. We aim to make the transition as seamless and cost-effective as possible for all policyholders," he said.
[The Business Standard]
