Insurance Repository services with a provision to open e-Insurance Accounts were launched exactly one year back. As of currently this service isn’t a great success. the main reason being low awareness regarding e-insurance account. Also, the insurance industry didn’t market this service aggressively.
Last week, LIC (Life Insurance Corporation) tied up with 5 Insurance Repositories to enable its policy-holders to manage their insurance policies through a single online account.
In this post, allow us to understand – what’s insurance repository? benefits of maintaining e-Insurance Account?
What is Insurance Repository (IR)?
“Insurance Repository” means that a company that has been granted a certificate of registration by Insurance regulatory and Development Authority (IRDA) for maintaining data of insurance policies in Electronic form on behalf of Insurers. The Insurance Repositories offer the ease of holding insurance policies issued in an electronic form.
The main objectives of IR are :
- To provide insurance policy-holders a facility to keep insurance policies in electronic form (dematerialized form)
- To provide policyholders a facility for for changing, modifying and revising the insurance policies online.
- To act as a single stop for policy servicing needs.
- To bring about the efficiency and transparency in the issuance and maintenance of insurance policies.
What is e-Insurance Account?
e-Insurance Account is an online repository system wherever you’ll electronically store all your insurance policies and maintain your insurance portfolio. it’s a unique Account number (13 digit) and each account holder will be granted a unique Login ID and password to access the electronic policies online. Like shares/mutual funds, you’ll access the insurance policies’ details electronically. The e-Insurance Account is opened with the following 5 entities.
- NSDL Database Management Limited
- Central Insurance Repository Limited
- SHCIL Projects Limited
- Karvy Insurance Repository Limited
- CAMS Repository Services Limited
Benefits of e-Insurance Account
The following are the broad benefits of holding Insurance Policies in electronic form:
- The insurance policies are stored in electronic form. the risk of losing the policy bonds is avoided.
- The details of the insurance policies will be accessed from anyplace and anytime.
- As of now, life insurance policies can be stored in electronic form. From December 2014, the insurance repositories can extend their services to store the health,motor, pension and all type of insurance policies.
- Service requests like ‘change of address’ will be submitted on your e-insurance account. The IR can update a similar on all the policies that are linked to the e-insurance account. there’s no need to visit all the insurers.
- One time KYC (Know Your Customer). No KYC repetition after you buy new policies.
- You can get the statement of account about the details of the policies from IR.
- There is no price involved for the policy-holders to open an e-Insurance Account. it’s free of cost.Insurance Repositories are paid by the insurers for their services.
- Premiums for all the policies will be paid online.
- Policy benefits like moneyback installments /survival benefits/claims can be paid electronically through the registered bank a/c of the policyholder.
- An authorized representative can be appointed by the e-Insurance account holder to operate his/her account in case of unfortunate demise. nominee and authorized representative will be a similar person.
- the e-Insurance Account holder can have an option to shift from one Insurance Repository to the other.
- You can choose of this service anytime.
- When you are buying a new insurance policy, quote your e-Insurance account number within the proposal form.
- Request the insurance company to issue the policy in electronic form.
- You can also add the existing insurance policies to your e-Insurance account.
- A list of all policies that are credited will be available in the e-Insurance Account. for each policy, details like the status, commencement, maturity/expiry, nomination, assignment, endorsement, address, terms and conditions etc., would be available. additionally, the e-Insurance Account holder will be able to download a copy of the policy bond.
Documents required for opening an e-Insurance Account:
- e-Insurance Account form
- Photocopy of ID proof
- Photocopy of Address proof
- Cancelled cheque
- Passport size photograph
How to open e-insurance Account ?
- Through any of the IR branches / Approved Persons (an Approved Person is a Point of Sale (PoS) appointed by Insurance Repository and will be working on behalf of Insurance Repository to extend the IR services ) OR
- Through insurance companies.
- Complete the form and sign it. (SHCIL eIA Form – Karvy eIA Form – CIRL eIA Form –CAMS eIA Form – NSDL eIA Form)
- Attach the required KYC documents with the application form and submit it.( Carry the original documents for verification)
- eIA will be opened within 7 days of the receipt of the application form from the applicant.
- Once e-Insurance Account is created, you will receive a welcome kit. A pin mailer shall be sent separately.
- Using the login credentials and PIN, you can access and start using your e-Insurance Account.
The list of IR branches or Approved Persons’ details are available on the respective companies’ websites. you’ll also submit these documents with your insurance company.
It is expected that IRDA could soon make e-insurance Account mandatory. IRDA is also making it mandatory for all the insurance companies to own a tie up with all the Insurance Repositories. Kindly note that an individual will have only one e Insurance Account across Repositories
I hope this post is informative. Do share your experiences if you already have e-Insurance Account.