Let
me talk on the topic directly. Lot of us have received a letter for Holding
Insurance Policies in Electronic form; at least I have received a letter and
lot of my family members of investors have too received it. We all
have been enjoying the benefits of Demat account and would have experienced the
ease and convenience that Demat form of holding Securities have brought to
dealings in Securities Market. Now it’s time to hold Insurance Policies in
electronic form and experience the same ease and convenience
It costs you nothing to open eIA and
hold insurance policies in electronic form.
·
Holding of all insurance policies in a single e-Insurance Account (eIA),
·
Doing away the hassles associated with holding the insurance policies in
physical form
·
One time Know Your Customer (KYC) for opening the e-Insurance account,
·
A single point of contact for the account holder to update demographic details
with insurance companies
·
Conversion of the existing paper policies into electronic policies at the
request of the policy holder
·
No charges for eIA opening and eIA maintenance to the eIA holder
·
Eliminates multiple KYC
·
All insurance policies under one umbrella
·
Single view for all policies
·
Portfolio tracking
·
Ease in Premium payments
·
Account Statement from Facilitator
eIA can be opened by filling the eIA
application form (attached) and submitting it to your nearest Approved Person -
your DP/Broker may also be an Approved Person who will facilitate opening of
eIA.
The details of the Approved Persons
and the list of insurance companies, whose policies as on date can be converted
into electronic form are available at respective Insurance Repositories. All
Insurance Repositories are in the process of appointing more approved persons
and many insurance companies are likely to join the Insurance Repository system
in due course.
A general FAQ is reproduced below
from one of the Repositories website:
WHAT IS INSURANCE REPOSITORY?
“Insurance Repository”
means a company formed and registered under the Companies Act, 1956 (1 of 1956)
and which has been granted a certificate of registration under these Guidelines
by Insurance Regulatory and Development Authority for maintaining data of
insurance policies in Electronic form on behalf of insurers including the
history of transactions during the term of Policy.
WHAT IS eIA?
eIA stands for
e-Insurance Account i.e. “Electronic Insurance Account” which will safeguard
the insurance policy documents of policyholders in electronic format. This eIA
account will facilitate the policyholder to access his all insurance portfolio
at a click of a button through internet.
CAN ONE HAVE MULTIPLE
e-IA ACCOUNTS?
No.
IRDA stipulates that an individual can have only ONE e Insurance Account across
Repositories, irrespective of the number of policies owned by a policy holder -
thus, if a person has an e IA with say Repository A, with any other Insurance
Repository. All Repositories will have systems in place to check this before
opening an e IA - any application for a second or multiple e IA will be
rejected by the Insurance Repository. All the electronic policies owned by a
policy holder can be credited or held under this single e IA.
WHAT IS THE OBJECTIVE OF INSURANCE
REPOSITORY?
The objective of
creating an insurance repository is to provide policyholders a facility to keep
insurance policies in electronic form and to undertake changes, modifications
and revisions in the insurance policy with speed and accuracy in order to bring
about efficiency, transparency and cost reduction in the issuance and
maintenance of insurance policies.
WHAT IS THE DIFFERENCE BETWEEN
DEPOSITORY AND REPOSITORY?
A depository is a
temporary storage where you put money and the value keeps fluctuating as per
the market value. A repository is a place where something valuable is stored
and the value is as per the agreement.
CAN ANYONE BECOME OR SET
UP INSURANCE REPOSITORY?
No, only entities
approved by Insurance Regulatory and Development Authority (IRDA) can become an
Insurance Repository. Insurance Companies cannot set up an Insurance Repository
on their own nor can they hold more than 10% stake in any Insurance Repository.
DO INSURANCE REPOSITORY
SELL INSURANCE POLICIES?
No, Insurance repository
cannot sell insurance policy. They just maintain record of all insurance policy
which the Policyholder has purchased from any insurance company.
WHO GOVERNS INSURANCE
REPOSITORY?
Insurance Repository is
governed by Insurance Regulatory & Development Authority (IRDA).
IS INTERNET
CONFIGURATION REQUIRED FOR INSURANCE REPOSITORY?
There is a web based system with all Insurance
Repository Approved Person (AP) and they
need to have Internet connection. The AP will be provided with User ID and
Password and they can create multiple Users. Further policy holder can also
login using Internet.
HOW TO OPEN AN e-IA
ACCOUNT?
To
open your eIA, you first need to select an Approved Person (AP), of your
convenience. Use Selected Insurance Repositories search engine in contact
details to find a AP who is located closest to your home or place of work.
Once you make your selection, you will be taken to an informative page of your
chosen AP. If you are satisfied with what you read, you can download the eIA
opening form & submit the same along with the KYC documents to the
respective AP chosen by you.
WHAT ARE BENEFITS OF
e-IA ACCOUNT?
Policy Servicing- Single request contact
details updation
- Premium alerts &
payment for all insurers
- Increased number of
service touch points
- Ease in registering bank
account details for premium payment and payouts
- One time Know Your
Customer updation
- Storage of policy in
electronic format
- All insurance policies
under single eInsurance Account
- Consolidated insurance
statement on an annual basis.
- Single view of all
policies to an authorized person in case of death of the eIA account
holder.
- One time claim intimation
CAN e-IA HOLD OTHER
FINANCIAL INSTRUMENTS?
eIA will hold only
Insurance policies and no other financial instruments.
WHAT ARE KYC DOCUMENTS?
KYC means (Know Your Customer) these documents include : - Proof of Identification (POI)
- Proof of Address (POA)
- Proof of Date of Birth/Age
No fees have to be paid by the customer for opening e-IA.
WHAT DOCUMENTS ARE
REQUIRED TO OPEN e-IA ACCOUNT?
Customer needs to
provide- Recent passport size photograph
- Cancelled Cheque ( In case of
ECS/NEFT services for insurance premium payment transaction)
Identity Proof (Any One)
- PAN card
- UID
- Regd. Lease and License
Agreement/ Agreement for sale
- Aadhar Letter
- Ration Card
- Driving License
- Passport
- Voter ID Card
- Bank Passbook (not more
than 6 months old)
- Electricity Bill (not
more than 6 months old)
- Residence telephone Bill
(not more than 6 months old)
- Self-declaration by High
Court and Supreme Court judges, giving the new address in respect of their
own accounts
- Identity card/document
with address, issued by Central/State Government and its Departments
- Identity card/document
with address, Statutory/Regulatory Authorities
- Identity card/document
with address, Public Sector Undertakings
- Identity card/document
with address, Scheduled Commercial Banks
- Identity card/document
with address, Public Financial Institutions
- Identity card/document
with address, Colleges affiliated to universities
- Identity card/document
with address, Professional Bodies such as ICAI, ICWAI, Bar Council etc. to
their Members
- PAN Card
- Domicile Certificate
- Ration Card
- Driving License
- Passport
- Voter ID Card
- Municipal birth
Certificate
- Notarized Birth
Certificate
- Baptism Certificate
- Marriage Certificate
issued by Church
- Identity card/document
with address, issued by Central/State Government and its Departments
- Gram Panchayat
certificate
- Identity card/document
with address, Public Sector Undertakings
- Defense ID including
Ex-serviceman card issued to Defense personnel/ certificate of DOB issued
by commanding officer with his seal & signature on the same
- Identity card/document
with address, Colleges affiliated to universities
- Central Govt. Health
scheme certificate for their employees/ family members/ dependants
- Govt. service registers
extract/certificates issued by Govt. to its employees
- Employer's PF statement
- ESIS Card ( Employees
State Insurance Scheme )
- Employer's certificate
from Govt., Semi Govt., MNC, Public Ltd, Reputed Private Ltd.
Organizations only. The certificate must be on the letterhead, duly signed
& stamped by the authorized signatory
- Certified School/ College
Extract including School/ College leaving certificate/ Degree certificates
/ mark sheet or hall ticket or admit card issued by Educational Board (10
& 12th std) reflecting DOB of eIA applicant
- Policy Document of other
private insurers
- LIC Policy
- Islander cards for
Residents of Andaman & Nicobar Island
- Pilgrim pass issued for
Haj Pilgrimage
As per IRDA guidelines
Pan or Aadhar is mandatory for opening an e-IA. Regret to say that you will not
be able to open e-IA without that.
HOW MANY DAYS DOES IT TAKE TO OPEN AN e-IA ACCOUNT AFTER ALL FORMALITIES ARE DONE?
Though each Insurance
Repository has little time frame and procedure, normally eIA account will be opened within 07 working
days and you will receive a welcome kit and Pin Mailer containing your user
name and password for your account to login to the e-insurance account.
HOW TO CONVERT PAPER
POLICIES INTO ELECTRONIC FORM?
Insurance repository provides
demat services for conversion of existing physical policies into electronic
form. Policy holders need to just follow the below mentioned steps for
conversion of the policy. Steps:-
- Fill the Request form for
conversion of physical policies into electronic form
- Surrender the existing
policy document with nearest
Approved Person/ concerned Insurance Company
- The policy will be
credited within 7 working days
- Confirmation will be sent
via SMS / email
Yes one can take
printout of e-Insurance policy for personal records whenever required.
WHICH ARE THE INSURANCE
POLICIES THAT WOULD BE ELIGIBLE TO HOLD IN ELECTRONIC FORM?All Life insurance, Health insurance , General insurance & Annuity policies that are issued by registered Insurance companies with IRDA who have signed up with the IR through whom you have opened an account eligible to be held in the electronic form. In the first phase only Life Insurance would be in electronic form.
CAN A POLICY HOLDER HOLD
POLICIES IN BOTH FORMS i.e. ELECTRONIC AND PAPER?
Policy holders can choose the form in which
they want their policies issued - paper or electronic. A policy can be bought
or maintained in one form only - either in electronic form or paper but not in
both. However, a policy holder can choose to keep some policies in electronic
form and others in paper form - only the electronic policies will be reflected
in his e IA account and he can use repository services only for the e policies
(and not the paper policies)
WHAT WILL HAPPEN AFTER
THE PROCEDURE IN DONE?
The repository will issue a unique code number
to all policy holders, and their policies will come under that number. It will
maintain the history of the policy details such as claims, nominees,
beneficiaries and other data. CAN AN e-IA BE OPERATED BY ONLY THE POLICY HOLDER?
Yes,
the e IA can be operated by the account holder only during his life time,
unless, of course, he has been unfortunately rendered incapable to operate it
(incapacity due to mentally unsound means or terminally ill as certified by a
medical practitioner). In such circumstances, the e IA may be operated by the
Authorized Representative (AR) appointed by the account holder (pl see below
for details).
The account holder is strongly advised to keep the log In ID and password for online access of his e IA confidential and not share it with anyone else.
The account holder is strongly advised to keep the log In ID and password for online access of his e IA confidential and not share it with anyone else.
WHICH ARE THE AUTHORISED COMPANIES AS INSURANCE REPOSITORIES?
As of now the insurance regulator has permitted NSDL Database Management Ltd, SHCIL Projects Ltd, Central Insurance Repository Ltd , Karvy Insurance Repository Ltd and CAMS Repository Services Ltd to act as insurance repositories.
WHICH COMPANIES HAVE REGISTERED AS PARTICIPATING INSURANCE COMPANIES?
(List is recently upated, and hence including details now)
WHICH COMPANIES HAVE REGISTERED AS PARTICIPATING INSURANCE COMPANIES?
(List is recently upated, and hence including details now)
-- ICICI Prudential Life Insurance Company Limited
-- HDFC Standard Life Insurance Company Limited
-- PNB MetLife India Insurance Company Limited
-- Star Union Dai-chi Life Insurance Company Limited
-- IndiaFirst Life Insurance Company Limited
-- Reliance Life Insurance Company Limited
-- Future Generali India Life Insurance Company Limited
-- Tata AIA Life Insurance Company Limited
-- Edelweiss Tokio Life Insurance Co Ltd
-- Kotak Mahindra Old Mutual Life Insurance Limited
DO's and DONT's
Do's
- No fee to be paid to AP for
opening eInsurance account (eIA)
- PAN/UID is a mandatory document
for opening eIA
- Provide clear copies of KYC
documents for eIA opening
- Self Attestation of KYC
documents is must
- Intimate your change of address
or contact details to your nearest Approved Persons (AP) immediately
- Maintain secrecy of your eIA
password
- Quote your eIA number when you
buy a new policy
- Signature should be uniform
across all your communication
- Verify your annual eIA statement
and inform your AP about any unauthorized credit found

Don'ts
- Avoid over-writing,
cancellations and misspellings in any documents
- Do not let anyone fill your eIA
- Don’t share your password with
anyone.
CONCLUSION
I still remember the
days when DEMAT was introduced. There were
lot of queries, lot of problems and lots of doubts on the system, but
eventually we all know now, where we are. I have seen and met policy holders
who don’t know what they have, where they have as far as Insurance is concerned
and hence I would suggest to opt for this facility. Initially there may be
problems,few insurance companies are still on board,but actually are not active enough, but the long term result seems to be great. When DEMAT was launched, everyone
was scepticle about it, but now we cannot hold paper share?
MY TAKE—SUBSCRIBE.
3 comments:
Great information about Insurance Demat services. Thanks for this..
My Pleasure,Thanks
Recently added List of Participating Insurance Companies as per latest updated list on the site.....Please check and get updated
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