Insurance new rule: e-Insurance in demat like format mandatory for all new policies from April 1, 2024; what is going to change?

economictimes.indiatimes.com:

insurance policies in electronic format. Very similar to how investors hold shares in a demat account.
In a notification «Protection of Policyholders’ Interests, Operations and Allied Matters of Insurers Regulations, 2024» dated March 20, 2024, the Insurance Regulatory and Development Authority of India (IRDAI) said, «Every insurer shall have in place a Board approved policy for insurance policies issued in electronic form...»
«Irrespective of whether the proposal is received in electronic form or otherwise, every insurer shall issue insurance policies only in the electronic form,» the regulator said. To issue policies in the electronic format, the insurers must fulfill two conditions: a) Provided that the authority, on being satisfied that it is in the interest of policyholders and for orderly growth of the insurance industry, allow such exemptions to this requirement; b) Provided further that the insurer shall mandatorily seek the choice of the prospect in the proposal form for availing physical policy document, IRDAI said.

What are policies in electronic format? How is it going to help the policyholders? ET Wealth Online explains.

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What is an e-Insurance?

As the name suggests, e-Insurance simply means buying insurance policies in a digital format. The digital version of the insurance policy will be stored in your e-Insurance Account or eIA. There are four insurance repositories – CAMS