It may be that you are holding your life or health insurance policies in physical form. Now suppose you intend to apply for a loan against one of your life insurance policies and unable to locate the physical policy. You visit the life insurance office and are told that you need to surrender your physical policy as part of your loan application. Since you have misplaced your physical policy, the process then told is to file an indemnity bond. Producing e-Welcome policy kit will not work since your life insurance company will keep the original physical insurance policy bond received through mail with them till the loan amount repaid.
In one case for a ICICI Prudential Life Insurance Policy of yearly premium 21,000 INR, the policy holder was handed a printout of 16M Format of Indemnity Bond to be Given by Customer (Annexure 1) and told to fill it with 500 Rs. Stamp Paper.
Doing a Google Search, I realized that opening an e-Insurance account will be the option that will bypass the need to go for indemnity bond.
As it is clear from the above email by CAMS, one of the four insurance repositories where e-Insurance account can be applied for, there is no need to submit physical policy, just raise a policy conversion request.
Apply for e-Insurance now (through any one of the below IRDA approved repositories):
After opening of your e-Insurance account, raise the policy conversion request.
After following the above process, the request then sent to the Insurance Company (ICICI Prudential in this case) for conversion.
Once applied insurance policy request credited, visit any of the insurance company branch for seeking loan against the policy. Carry original id of Aadhar/PAN. You will be handed a document to fill. After filling and submitting the same in the branch, most probably within 2 to 3 business days, loan amount credited to your choice of bank account.