Do you often have trouble trying to find your Insurance Policy documents? Do you miss out on premium due dates? Don’t worry! The Insurance Regulatory and Development Authority (IRDA) has found a solution for all your worries. You can dematerialise your insurance policy, thus making it easier for you to access it.
Why is dematerialising insurance good for policyholders? For starters, you don’t have to be bothered about preserving your physical documents. In addition to this, you can track all your policies from a single reference point rather than having to track multiple policies.
Additional Reading: How An E-Insurance Account Can Make Life Easier
The IRDA has commissioned four entities to act as insurance repositories. An insurance repository is the term given to a facility which lets you keep your insurance policies in the demat form (as e-insurance). The four repositories, approved by IRDA, are NSDL Database Management Limited, Central Insurance Repository Limited, CAMS Repository Services Limited and Karvy Insurance Repository Limited.
How to dematerialise your insurance
It’s pretty simple! You’ll need to open an eIA with any of the four insurance repositories mentioned above. As a policyholder, you’ll be allowed to open only one eIA. You can open this account in any of the three ways:
- Apply directly to the repository
- Apply through one of their agents
- Apply via your insurance company
So, what if you hold different policies? Not an issue! You can store all your policies (from multiple insurers) in the same account.
Opening an e-insurance account is simple and quick. You’ll be required to fill an account-opening form and submit your KYC documents. Within seven days of submitting the application, your account will be active. You’ll be provided with login and password details to access your account online. Once your account is active, you can raise service requests to dematerialise your existing policy documents. These requests can be submitted directly to the repository, its agents or to your insurer.
What’s even better? It’s a free service. No costs attached whether you’re opening an e-insurance account or converting your existing policies into the demat format. Your insurance company will pay the repositories for maintaining your records. With electronic-insurance accounts gaining popularity, you can expect cheaper insurance policies in the future. When it comes to cost benefits, it’s like a win-win situation for both policyholders and insurance companies.
Even buying a new Insurance policy becomes easy and simple if you have an e-insurance account. You’ll just have to quote your eIA number in the application form and opt for a demat policy. Since you have already submitted your KYC documents, you don’t have to go through that process again.
It’s easy to make changes to your policy too. Since the repository is your single point of service, you can just submit your request to it. For changes in personal information such as your contact details, the repository will verify the same and then inform your insurer. For policy-related changes (like nominees, sum assured, etc.), your request will be forwarded to your insurance company by the insurance repository.
Additional Reading: How To Convert Your Paper Insurance To E-Insurance
The Many Benefits of eIA
Here are a few reasons why an e-insurance account is a sensible move for policyholders.
Unlike storing physical copies of your insurance policy, storing them online with a repository is a safer option. Your documents are less likely to be misplaced, lost or destroyed (natural calamities!).
Single Point of Service
An eIA lets you hold all your policies in it. Basically, it serves as your single point of access to all your policies.
It will save you a lot of time and effort. Firstly, you can easily update personal or policy-related information from your online account. In addition, you don’t have to submit and verify your KYC documents every time you buy a new policy. No more lengthy forms or identity proofs needed – you just need to quote your account number.
An eIA allows you to appoint an authorised representative or nominee who will have the permission to access your account on your behalf.
Hope that helps. You’re welcome!