Mumbai/New Delhi: If you are planning to buy a new Life or Health insurance policy as part of your New Year’s resolution, note that the process has changed completely from today.
As per the directive of the Insurance Regulatory and Development Authority of India (IRDAI), starting today, January 1, 2026, it has become mandatory for all new insurance policies to be issued only in electronic form.
This means the era of receiving bulky physical policy bonds via post is officially over.
What Is the New Rule?
- Mandatory Dematerialization: Just like shares are held in a Demat account, all new insurance policies (Life, Health, Motor, General) must now be held in a digital e-Insurance Account (eIA).
- No Paper Policies: Insurance companies will no longer issue physical policy documents for new contracts. You will receive a digital copy directly into your eIA.
- Existing Policies: While not mandatory immediately, IRDAI has strongly encouraged policyholders to convert their old physical policies into digital form for safety.
What is an e-Insurance Account (eIA)?
An eIA is a single digital portfolio where you can store and manage all your insurance policies from different insurers. It’s like a “Demat account for your insurance.”
Benefits of the New System
- Safety: No risk of losing the physical policy document due to theft, fire, or damage.
- Convenience: View all your Life, Health, and Car insurance policies under one single login.
- Easier for Nominees: In an unfortunate event, your family (nominee) won’t have to hunt for paper documents. They can easily access details through the eIA.
- Quick Changes: Updating contact details like address or phone number becomes easier across all policies.
How to Open an e-Insurance Account?
Opening an eIA is completely free for the policyholder. You can open it with any of the IRDAI-approved Insurance Repositories.
List of Approved Repositories:
- NSDL Database Management Limited (NDML)
- CAMS Insurance Repository Services
- KARVY Insurance Repository
- Central Insurance Repository (CDSL)
Steps to Open:
- While Buying Policy: Most insurers will now give you an option in the proposal form to open an eIA directly.
- Online Direct: Visit the website of any repository (links above), click on “Open e-Insurance Account,” fill in your KYC details (PAN/Aadhaar), and submit. An account number will be generated instantly.
What Should You Do?
- Buying New Policy? Ensure you have your eIA number ready to give to the agent/insurer. If you don’t have one, they will open it for you.
- Have Old Policies? It is highly recommended to open an eIA today and start the process of converting your old paper policies into digital form. It’s a simple online request.
FAQs
No, it is completely free of cost for the policyholder. The insurance companies pay the repositories.
According to the new rule, the primary issuance is digital. However, you may request a physical copy, but the insurer might charge a small fee for printing and courier. The digital copy in your eIA is the legally valid document.
Yes, absolutely. The main purpose of an eIA is to hold policies from multiple different insurers in a single account.
Disclaimer
This report is based on IRDAI guidelines regarding the mandatory dematerialization of new insurance policies effective from January 1, 2026.
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