insurance information sheet, which will contain basic details of the policy when a new electronic policy is issued. Repositories will enable a platform where policyholders can get the facility of online payment of premiums and online claim settlement by insurers. The e-insurance account holder will have an option to shift from one repository to another.
Irda has said repositories will not sell or solicit policies. They will be authorised only to maintain policies in electronic form and provide service record. Each e-insurance account will have a unique account number and each accountholder will be granted a login ID and password to access his policies online.
IndiaFirst Life MD & CEO P Nandagopal said life insurance policies are the only major retail financial product still issued and maintained in paper form. “India may probably be the first country to embark on and implement such a pathbreaking initiative by transforming physical insurance policy certificates into electronic form,” he said. Bajaj Allianz Life Insurance technical head P Ravi Kutumbrao said the repositories will help insurance companies ensure compliance with and uniformity of KYC details.
Importantly, an individual cannot open multiple e-insurance account. An e-insurance accountholder or a policyholder will have to fill in the e-insurance form, submit a photo identity, address proof, a recent passport-size photograph and a cancelled cheque for ECS/NEFT services for insurance premium payment.
Even an individual who does not have an insurance policy can open an e-insurance account. After buying a policy, he can submit a request for dematerialisation to the insurer or the insurance repository.
Irda has given a list of KYC documents like PAN card and UID card for identity proof and ration card, passport, Aadhar card, voter ID card, driving licence, etc., for address proof. An e-insurance account will be opened within seven days from the date of submission of the complete application. If the insurance repository fails to issue the policy in electronic form within the time specified, it will be liable to fine. Once an account is open, the repository will send a welcome kit, giving details of how to operate the account.