Managing multiple insurance policies, keeping policy related documents in a physical form, the risk of loss and damage of policy related documents, all these problems will be solved by the introduction of an e-Insurance account. This account will help you to manage all your polices in a digital format. It will be a totally secure and easy way of managing your policies. The same way in which demat account has eased the process of managing stock and mutual funds, this account will serve the same purpose for your insurance policies.
So, let us look at the ten things which you should know about e-insurance account:
1) What is an e-insurance account?
An e-insurance account stands for “Electronic Insurance account” and is a digital account for maintaining insurance policies. It will help you to manage multiple policies under a single account. All your policy related documents will be stored in a digital format and you will also be able to buy insurance policies through your e-insurance account.
2) What are the Benefits of an e-Insurance Account?
It will reduce the risk of loss and damage of policy related documents. All the policy documents will be kept safe under your this account and will be easily accessible.You will also not required to go to the insurance office for making any changes in your policy documents like your name, address, phone number, nominee details, etc. You will just have to apply for the change through your Insurance account and the change in information will be sent to all the insurance companies under which you are covered.
You can even buy a new policy through your e-insurance account without going through KYC verification. Insurance companies will just require your e-insurance account number and your KYC verification will be done as the KYC details will be available on your insurance account. You will be able to manage all your policies (even from different companies) under your single e-insurance account. Reminder for premium payment, change of nominee, change for sum assured, claim settlement, etc., will be available in your e-insurance account. It will make managing policy easy and paperless.
3) Who can have an e-Insurance Account?
Any policyholder can convert their existing insurance policy to an account. A person applying for new policy can also have an e insurance account. If you are not having any policy and not even applying for any new policy. After buying a policy, you can request for dematerialization of the policy.
4) What is Insurance Repository?
The IRDAI certified company which is responsible for managing your e-insurance account is called as insurance repository. They will be responsible for managing your policy details in digital format.
You will be having options to choose from the following five insurance repositories which have been certified by IRDAI :
- NSDL Database Management Limited
- Central Insurance Repository Limited
- SHCIL Projects Limited
- Karvy Insurance Repository Limited
- CAMS Repository Services Limited
5) What is the Process of Opening an e-Insurance Account?
You will have to fill the application form which can be downloaded from the website of insurance repository or insurance company. You can also get the application form from different offices of insurance repositories. After filling the form and attaching it with required documents (as mentioned above), you can submit it to the nearest branch of the insurance company for which you hold insurance policy or to the approved person.
Upon submission of the requisite documents to the insurance company or insurance repository, you will receive a welcome kit from the insurance repository which contains your account details and user manual.
You can use your id and password (provided by the insurance repository) to log in into your Account. You will also be provided with a unique account number by the insurance repository.
6) What are Documents Required for Opening an e-Insurance Account?
To open an account, you will need a PAN card, Adhar card, id proof, dob proof, recent passport size photograph, cancelled cheque and address proof.
7) What are the Charges for Opening an e-Insurance Account?
You don’t have to pay anything to open an e-insurance account, it’s absolutely free of cost. Insurance repositories are paid directly by the insurance companies whose policies are held by the repository.
8) How Many e-Insurance Accounts can You Possess?
According to the guidelines of IRDAI, one person will be allowed to open only one account. This is because all your policies will be available under a single account so there is no need of another account.
9) Can You Cover Your Existing Policies into an e-Insurance Account?
Till now, only health, life, general and annuity insurance policy can be held and converted into e-insurance account. From 1 October 2016, having an e-insurance account for buying a new policy has been made mandatory by IRDAI.
10) Who is an Approved Person?
An Approved person is an appointed person by the chosen insurance repository for providing customer service to you. You will get a specific approved person who will be helping you with the services of insurance repository.
E-insurance policy is a great move towards digitization of the insurance sector. It will make issuing and managing of insurance policy, very easy and paperless. There will be less chances of fraud also due to the transparency of documents. This step of digitization will be beneficial for both, company and the customer.