Source: The Times of India

With the Insurance Regulatory and Development Authority set to issue final certificate of registration to five entities, policyholders have the option of maintaining policies in demat form similar to how equity shares can be maintained in depositories. A look at how the new system will work.

What is an Insurance Repository?

“Insurance Repository” is a company recognized by the insurance regulator for maintaining a data of insurance policies (life, health, motor and group covers) in Electronic form on behalf of insurers including the history of transactions during the term of Policy. They are similar to depositories that hold equity shares in demant form. The IRDA has approved five repositories promoted by NSDL, CDSL, SHCIL, Cams and Karvy for setting up insurance repositories and has indicated that final certificate of registration would soon be granted.

What is an eIA account and who can open it?

An eIA account (Electronic Insurance Account) is the portfolio of insurance policies of a policyholder held in an electronic form with an insurance repository. Anyone – either an existing policyholder or a prospective one -- can open an e-insurance account. There is no additional cost for opting for electronic policies. Existing policies can also be dematerialised from electronic to physical. Policyholder can avail the benefits of the services like financial or non financial alteration/endorsements under the single e- insurance account.

Who bears the cost?

The eIA opening is free of cost wherein all the incidental expenses will be borne by the Insurance Repository. Policy creation, dematerialization and servicing thereafter would be paid by the respective Insurers on behalf of their policyholders.

What is the basic requirement to be completed for opening an eIA account?

An eIA form needs to filled up and submitted along with photo ID and address proof to any nearest office of Insurance Repository branch or to the insurance company where the policyholder has his life insurance or non life insurance policy or the authorized Approved Person (AP) appointed by Insurance Repository.