Insurance repository services were launched in India on 16th September’2013. According to the norms of IRDA these services would provide a facility to keep insurance policies in electronic format to the policy holders. IRDA had licensed five companies to act as repository. These companies could offer insurance repository services are NSDL, Central Insurance Repository Limited, SHCIL Projects Limited, KARVY Insurance Repository Ltd and CAMS Repository services Ltd. Currently this facility is only available for Life insurance policy but it might be made available to the Non-life insurance policies too in the coming years.
Let’s take a look on how do the Insurance repository services benefit you and what exactly are they.
Insurance Repository Services
Insurance repository services help policy holders owe and keep insurance policies in electronic format rather than just on a paper. This gives policy holders a get one e- insurance account while purchasing a new policy will quote the account number on the proposal. When the policy gets issued the statement of e-insurance account gets displayed. One can transform the existing paper policies into electronic form. Electronic form of a policy is considered as a single service through repository along with the benefits of convenience.
E-Insurance account Opening Process
To open an e-Insurance account, one has to fill up the account opening form and submit it along with the KYC documents. KYC are PAN/UID card, date of Birth proof and an address proof along with a passport size photograph. Having a PAN car or UID card is mandatory. After document submission account opening will take not more than a week. Opening an E-Insurance account is totally free of cost. Companies would directly compensate the respective repository for their services.
As per the Insurance repository norms one person can only hold one E-insurance account. However, transfer of holdings can be done from one account to another after closing the previous account. As of now only the life insurance policies are eligible for E-Insurance account but it might get extended to other general insurance policies also.
After the digitization of all the policies, policy holders don’t have the need to communicate with different insurance holder companies regarding the changes in the policies. Once the request is submitted in the respective format everything would be taken care by the repository ensuring that the same is executed in the policy. Policy details can be viewed by online login and account statement will be sent either physically or via email.
How to buy Insurance policy in electronic form
To buy a new policy you just need to quote the E insurance account number on the proposal form with a request to issue the policy in electronic form. As your KYC is already done so issuer might not ask for KYC again unless there’s any change in the address or any other detail.
Converting existing policy in electronic form
A request is needed to be submitted in the respective insurance company to convert the paper policy in electronic form. The request forms are provided by repository. Different request for different policies is required.
Now will you go for Insurance repository services E-Insurance account?
We recommend this to you. Though one must not have too much insurance policies only one or two policies can be taken care of. But moving forward one can reap the actual advantages of such account. Moreover electronic forms are easy to manage and more secure free from the fear of theft or getting lost.