IRDA has introduced the facility of holding the insurance policies in an electronic form similar to the demat facility on stocks. Now, Policyholders can keep all insurance policies in electronic form and can undertake modifications in the insurance policy with speed and accuracy. Once the policy holder has an account with a repository, he can purchase subsequent policies from any insurance company without submitting KYC documents (Address, Identity Proofs) again.
Who can open an e-Insurance Account?
The e-insurance account can be opened by existing policy holders or potential insurance policy holders. As a customer, you can have only one ‘e-Insurance Account’
Policies Eligible to Hold in Electronic Form
All life insurance policies, health and pension policies issued by registered life insurance, Health Insurance and General insurance companies registered with IRDA.
Required Documents to Open an e – Insurance Account
KYC documents (Valid address proof, prescribed photo identity proof like PAN card/Aadhar card), and a duly filled form will be required.
Promoters to Set up Insurance Repositories
Insurance regulator IRDA has issued licences to five promoters to set up insurance repositories — National Securities Depository (NSDL), Central Securities Depository (CDSL), Stock Holding Corporation’s SHCIL, Karvy Group and Cams. These five firms have their systems in place, which are being beta tested with a small number of policies. The official launch is expected to take place in September.
In terms of the IRDA’s proposal, a policyholder can choose any of the repositories where he has to maintain the account.
Benefits of Dematerialization of Insurance policies
- KYC documents like address and ID proofs will not have to be furnished every time a policy is bought
- For insurers, electronic records will slash costs & renewal notices will also become easier.
- It will facilitate portability.
- Better contact with customers, as in the case of life insurance companies, policyholders often move house without informing the company of the change in address. But because motor and health insurance are annual contracts, the addresses are updated regularly
Can I open an e – Insurance Account (eIA) today?
No. The process at insurers and Insurance Repositories is under way. In a few weeks, insurance buyers will be able to convert all their policies into electronic records under one common folio, irrespective of the company or even the nature of policy. Be it life, health or motor — all policies can be dematerialized and maintained under one account. Once the process is ready you will be informed. The Insurance Repository will open an e Insurance Account within 7 business days from the date of receiving the eIA application form. On opening the e IA, the Insurance Repository will inform the applicant the particulars of the e Insurance Account and usage instructions through email and by post.