Are you planning to apply for Insurance Repository System and are confused what is it? Keep reading to know your solution.
Overview
An organization that holds data on insurance policies in electronic form on behalf of insurers is known as an Insurance Repository (IR), and it requires a license from the IRDA to do so. Having an IR will allow policyholders to purchase and maintain their insurance policies digitally rather than on paper.
The term "electronic policies" or "e Policies" refers to insurance policies that are issued to individuals and are stored electronically by insurance repositories, similar to share repositories or mutual fund transfer agencies.
Only entities approved by Insurance Regulatory and Development Authority (IRDA) can become an Insurance Repository and CAMSRep is among the first to launch an Insurance Repository.
What is an e Insurance Account (e IA)?
A policy holder needs to open an e Insurance Account (e IA) with one of the Insurance Repositories to be able to buy and keep policies in electronic mode.
A person is only allowed to have one electronic IA with each Insurance Repository. After opening an e IA, the account holder can request that all of his policies, issued by different insurers, be converted to electronic mode and credited to this single account. And also e-Insurance Account is offered ‘free of cost’ to the applicants.
Users & Service Providers :
eIA Holder
A policyholder who wishes to hold his insurance policies in electronic form can open an eIA account through a Approved Person (AP) appointed by NIR. Once eIA is opened, the policyholder can get a credit of insurance policies from insurance companies instead of physical policy document in eIA. eIA will provide ease to the customer to carry out policy servicing and maintenance requests.
Insurance Companies
Insurance companies will credit the policies in the eIA of the customer who have opted for an e issuance of a policy.
Approved Person (AP)
Approved Person (AP) will be the agents of NIR through which eIAs can be opened and various servicing request can be facilitated. A AP will facilitate account opening and any changes in the account details upon the request of the individual.
AP will carry on the following account servicing request -
· Address Change
· Change in bank account details
· Change in authorised representative
· Change in contact details
Who can become an AP?
To be appointed as an Approved Person of an insurance repository, a company must be registered under the Companies Act of 1956 and have paid up capital of at least Rs. 5 lakh. Therefore, only an existing firm that satisfies the qualifications can be appointed as an AP.
The benefits of holding Insurance Policies in electronic form :
Safety: There is no risk of loss or damage of a policy as is common with paper policies. A copy of the policy can be downloaded at any time by accessing the e-Insurance Account.
Convenience: All Insurance policies, be it life, pension, health or general, can be electronically held under a single e-Insurance Account. The details of any of the policies can be accessed at any time by logging on to the online portal of Insurance Repository.
Single Point of Service: Service requests in respect of e-Insurance Account or any of the electronic policy can be submitted at any of Insurance Repository’s service points. A single request can sometimes cater to the requirements of several Insurers. There would be no need to go to several offices of individual Insurers for service.
Less Paper work and savings in time: An e-Insurance Account holder is freed from the trouble of submitting KYC details each time a new policy is taken. Further, any changes in personal details like address or contact number can be effected through a single request thus saving on paper and time.
Statement of Account: At least once every year, the Insurance Repository would send a statement of account to the e-Insurance Account holder with the details of the policies of the account holder.
Payment Options: Premium for all the policies can be paid online and several service requests can be logged from the e-Insurance Account.
Increased number of service touch points: Since, the Insurance Repositories function in addition to the Insurers, the policyholders will have increased number of touch points for having their servicing needs attended.
Easy payout transfers: Policy benefits would be paid through electronic facility to the registered bank account, thus ensuring speedier and convenient settlement.
Single view: Single view of all policies will be made available to an authorized person in case of death of the e-Insurance Account Holder
Eligibility Criteria for Repository Registration
Registered Public Limited Company as per the companies act Regulations.
Financial Institution or a wholly owned subsidiary with the SEBI.
Company promoted by the Life or General Insurance Council or both.
Document Required for Insurance Repository
The applicant must submit the following documents along with the Insurance Repository license application to the IRDAI:
Certificate of Registration of the applicant Company
Net worth Certificate of the Applicant Company
Object of the Company/Memorandum of Association
A Non-Refundable license processing fee receipt
Duly filled Application Form R-1
And other relevant documents as required by the IRDAI
Insurance Repository - IRDA
The following five organizations have been given the Certificate of Registration by IRDA to function as "Insurance Repositories" that are permitted to open e-Insurance Accounts.
Name of The Insurance Repository | Websites |
• NSDL Database Management Limited | |
• Central Insurance Repository Limited | www.cirl.co.in |
• SHCIL Projects Limited | www.shcilservices.com |
• Karvy Insurance Repository Limited | www.kinrep.com |
• CAMS Repository Services Limited | www.camsrepository.com |
For accessing the electronic policies online, each e-Insurance Account will have a distinct Login ID and Password assigned to the account holder.
The requirements to be completed for opening an e-Insurance Account :
An e-Insurance Account holder or policyholder is required to :
a. Fill the e-Insurance Account form and
b. Submit
• Photo ID,
• Recent passport size photograph,
• Cancelled Cheque ( In case of ECS/NEFT services for Insurance premium payment transaction) and
Address proof to the office of Insurance Repository or Insurance company or authorized Approved Person (AP) appointed by Insurance Repository
Process:
Let us understand the procedure in the following steps:
Check for your eligibility for the required registration and prepare yourself accordingly.
IRDAI issues the request for proposal for Insurance Repository registration.
Prepare and draft the required documentation for registration.
Fill out the application form IR-1 with the relevant details.
Draft the application along with the requisite documents.
Attach the DD or the payment order of the non-refundable processing fees of INR 10,000/- drawn on IRDAI.
Post the application. The Authority will receive the application for assessment.
The applicant must also provide an affidavit to the IRDAI Authority within 15 days of receipt of Intimation from the Authority during the assessment period.
The IRDAI mandates one physical visit to its premises before issuing the Certificate of authorization for further assessment.
Finally, the IRDAI will grant the Certificate for setting up the Insurance Repository to 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.
Registration Certificate Validity & License Renewal :
The Certificate of registration is valid only for three years. After the lapse of such a period, the applicant must file for a renewal application to carry on the business of the Insurance Repository.
The Repositor must make the application for renewal at least 60 days before the expiry of the Certificate of Registration.
We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.
Quote of the day:
“ To handle yourself, use your head; to handle others, use your heart.“
~Eleanor Roosevelt
Regards
Chanda Gupta
+ 91 96323-32850
umang@caumang.com
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