The recent guidelines issued by IRDA would now enable you to hold your insurance policies in electronic form. The benefits of doing so need not be explained- transparency, lower transaction costs, ease of operation – transactions like switching and other changes can now happen at a click of a button. Most importantly, it will do away with the job of carefully and painstakingly maintain and preserve a physical folder with all the original insurance policy documents, for years together.
How it would work –
IRDA has identified five companies which have been accorded the status of an insurance repository-
- NSDL Database Management Limited
- Central Insurance Repository Limited
- CAMS Repository services Limited
- SHCIL Projects Limited
- Karvy Insurance Repository Limited
The policyholder can open an e-insurance account with any of the above mentioned repositories by providing the standard documents and details – address proof, identity proof etc. The policy holder will be allotted a unique EI account number. The existing insurance policies can then be dematerialized and held in this e-insurance account. The application forms for opening an EI account would be available in the offices and on the websites of the repositories once they are fully operational.
This service is free of cost for the policyholder. The Insurance repositories would be paid by the Insurance companies with whom the policy holder is insured.
And, by supporting this “paperless” and “go green” initiative, you would also be doing your bit towards protecting the environment:).