In India, Insurance Repositories are entities that are authorized by the Insurance Regulatory and Development Authority of India (IRDAI) to provide electronic storage and access to insurance policies issued by various insurance companies. Here’s a note on Insurance Repositories and Insurance Accounts in India:
- What is an Insurance Repository?
An Insurance Repository is an entity that is authorized by the IRDAI to provide electronic storage and access to insurance policies issued by various insurance companies. Insurance Repositories are regulated by the IRDAI and must comply with the rules and regulations set by the regulator.
- What is an Insurance Account?
An Insurance Account is an electronic account that is opened by a policyholder with an Insurance Repository. Once an Insurance Account is opened, the policyholder can link all their insurance policies issued by different insurance companies to the account. The policyholder can access all their insurance policies from the Insurance Account.
- Benefits of an Insurance Account:
An Insurance Account provides several benefits to policyholders, including:
- Electronic access to all insurance policies in one place
- Reduction in paperwork and documentation
- Ease of tracking and managing insurance policies
- Quick and easy transfer of policies from one insurer to another
- Safe and secure storage of insurance policies
- Opening an Insurance Account:
To open an Insurance Account, a policyholder needs to submit a Know Your Customer (KYC) form and a Common Application Form (CAF) to an Insurance Repository. The KYC form includes personal information such as name, address, date of birth, and PAN card details. The CAF includes details of all the insurance policies that the policyholder wants to link to the Insurance Account.
- Insurance Repositories in India:
Currently, there are five authorized Insurance Repositories in India:
- NSDL Database Management Limited
- Central Insurance Repository Limited
- Karvy Insurance Repository Limited
- CAMS Repository Services Limited
- SHCIL Projects Limited
- Charges for an Insurance Account:
The charges for an Insurance Account vary among the different Insurance Repositories. Some Insurance Repositories may charge a one-time account opening fee, while others may charge an annual maintenance fee.
Conclusion:
Insurance Repositories and Insurance Accounts have revolutionized the way insurance policies are managed in India. With the growing popularity of electronic transactions, Insurance Accounts provide a safe and secure way for policyholders to manage their insurance policies. The IRDAI has taken several steps to promote the use of Insurance Accounts, including setting up regulations and authorizing Insurance Repositories. As more policyholders become aware of the benefits of Insurance Accounts, the use of this facility is expected to grow in the coming years.