With IRDA having recently issued licenses of Insurance Repository (IR) to five entities, it is important to know about e- Insurance Account (eIA) and Insurance Repository.
What is insurance repository?
The objective of creating an Insurance Repository (IR) is to provide policyholders a facility to buy and keep their insurance policies in electronic form. They can convert their new as well as existing policies into electronic form through this service.
Like R&Ts of mutual funds, the IR will hold electronic records of insurance policies issued to policyholders. Policyholders can merge all policies like health, motor, life insurance etc. in a single account. Such account is called as e-Insurance Account (eIA).
The policyholders can modify or update their information like change in address, nomination etc. through their eIA. IR will communicate to all the insurance companies about the updates on behalf of policyholders.
Who will act as Insurance Repository in India?
IRDA has recently granted IR licenses to five entities - NSDL Database Management, Central Insurance Repository, SHCIL Projects, Karvy Insurance Repository and CAMS Repository Services.
Policyholder can shift from one IR to another. All the policy details and transaction history would then be transferred to the new repository.
Also, the policyholders can opt out of this service by making a request to their respective insurance companies.
What would be the fee for using this service?
eIA will be offered ‘free of cost’ to the policyholders. Those who have not bought any insurance policies can also open their account with IR. Such persons can request for dematerialization of their policies with their insurer after buying a policy. However, an individual cannot open multiple accounts.
What are the requirements for opening an eIA? How many days does it take to open eIA?
Policyholders need to submit application form along with the supporting documents like photo id, passport size photograph, cancelled cheque, KYC documents etc. before IR for opening an account.
The account will be opened within seven days from the date of submission of application form. Once, an account is opened, a welcome kit with the operating details will be sent to the account holder.
Who is authorized representative (a section mentioned in the application form)?
Like a nominee, an authorized representative is a person who is appointed by eIA holder to operate his/her account in case of any unfortunate event. However, the policyholders can request for the change of authorized representative anytime.
What is the grievances redressal mechanism at insurance repository?
Every IR will have a policyholders’ grievances cell to address the problems of policyholders in respect of repository services and electronic policies held by them.
What are the advantages?
This service will ensure convenience and transparency, thereby reducing cost, paper work and risk of loss of documents. Policyholders can also pay their premium online through this facility. The IR will also send a statement of account to the e–Insurance account holder with the details of the policies of the account holder at least once a year.