FM launches IRDA's Insurance Repository System

India Infoline News Service | Mumbai |

A policyholder needs to open an e-Insurance Account with an Insurance Repository to buy and keep policies issued by various insurers in electronic mode

Union Finance Minister P Chidambaram on Monday launched the IRDA's Insurance Repository System (IRS) in Hyderabad.

Insurance Repository system for individual policyholders is a pioneering initiative of India’s Insurance Regulatory and Development Authority (IRDA), as part of its efforts to improve services to policy holders and Insurance penetration.

Insurance Repository system will enable policy holders to buy and keep insurance policies in dematerialized or electronic form (e-Policies). e-Policies will eliminate paper and associated risks of storage and loss and provide convenience and safety to the customer. It will also make it an economical preposition for Insurance companies to issue and service e policies as compared to traditional paper policies. This reduced cost will make lower ticket policies much more viable and is expected to give a further boost to greater penetration of insurance in India.

IRDA has licensed five entities – NSDL Database Management Ltd., Central Insurance Repository Ltd., SHCIL Projects Ltd., Karvy Insurance Repository Ltd., and CAMS Repository Services Ltd – to act as Insurance Repositories (IRs). The IRs will also act as a single point of service for all e-Policies held by a policyholder, making it convenient for policy holders to get service on demand. All the Repositories will be directly regulated by IRDA.

A policy holder needs to open an e Insurance Account (eIA) with an Insurance Repository to be able to buy and keep policies issued by various insurers in electronic mode – be it life, pension, health or general. This account opening is free of cost to the account holder. An Individual can have only one e IA and he will get a unique e Insurance Account number. Once an e IA is opened, a policy holder can keep all his e policies, both life and general, issued by various Insurers, under this single account. Initially, this facility is launched for life insurance policies which are of long term nature.

A policy holder can also convert existing policies (in paper form) into electronic form by submitting a request for conversion after opening an e IA. Once a person has an e-IA, he doesn’t have to go through the KYC process every time he buys a new insurance policy. Further, any changes to personal details like address can be effected through a single request to the Repository.

Over a period of time, Insurance Repositories will be able to provide a number of services to the policy holders. It will help insurers to bring efficiency in dealing with the requirements of the policyholders and at the same time cut down their costs. As dematerialization is expected to bring down the cost of issuing and servicing policies, the IRs will be paid directly by the Insurers for these services rendered. No additional cost will need to be paid by the policyholders.

As part of this IR initiative, IRDA has set up iTrex, an Insurance Transaction Exchange to facilitate data interchange between the Repositories and Insurance Companies.
 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.