September 24, 2013

E-Insurance Account-Demat your all Insurance Policies

One of the easiest and convenient way of handling the documents will be in electronic format or in dematerialized format. Advantages are already known to all by having stocks, FDs, Mutual Funds or Bonds. Now the turn is for your Insurance Policies.

To secure the policy documents and serve the clients in a better way IRDA recently launched the Repository system which will keep all your Insurance Policy documents into electronic format. Let us see the procedure and how we can convert our policies to E-Insurance.

The advantages of having your policy documents in Demat form

  • It provides fair treatment to policy holders as there will be no possibility of loosing your documents.
  • This facility totally eliminates paper and storage risk of your policy documents.
  • It automatically improves the speedy genuine claim settlements and present frauds.
  • One time KYC for insurance buying irrespective of company product you want to buy.
  • Change in address, nominee or other related services can be done at a single point of service. These changes will automatically update all your insurance policies irrespective of company.
  • It will drastically reduce of mis-selling. Currently few agents used to keep the policy documents with them till the expiry of 15 days free look period, which will not be possible from now.
  • It will reduce your policy maintenance expenses drastically. For example LIC spends around Rs.500 to Rs.600 in storing a policy.
  • Your premium may get reduced. But don’t to what level as insurers need to pay to demat providers also.
  • You can pay for all your demat policies at one point by login to your account.

What do you mean by Insurance Repositories?

These are the registered companies who got approval from IRDA to maintain the data in demat form on behalf of insurance companies. Below is the list of such repositories who currently got approval from IRDA.

1) NDSL Database Management Limited

2) Central Insurance Repository Limited

3) SHCIL Projects Limited

4) Karvy Insurance Repository Limited

5) CAMS Repository Services Limited

Below are the few points related to this service

  • You can keep all your existing policies as well as future policies with anyone of the above repositories in demat format.
  • As told above you can convert your existing physical documents of policies into demat format.
  • Such account of holding in demat format is called as eIA (Electronic Insurance Account).
  • With the click of button on your account, you can view all your existing policies.
  • Repositories acting as single stop shop, you can change address, nomination and other service related request with speed and accuracy.
  • You need one time KYC formalities while opening the account irrespective of Insurance Company you are dealing with.
  • You can convert your Life Insurance, Health Insurance, Pension Policies and General Insurance Policies into eIA format. But currently you are able to convert only Life Insurance policies only.
  • This facility is “Free of Cost“.
  • You can nominate someone to operate this account in case of your demise or disability for further processing of claim settlement.
  • If you are not satisfied with one repository then you can switch any other above listed repositories.
  • You will receive the annul statement from repository about the details of holding policies.
  • The above said repositories can only act as a service provider but can’t sell insurance policies to you. So feel free 🙂
  • Each user will have unique Login ID and Password which will also have unique Account Number.
  • You can not open multiple e-Insurance Accounts.
  • Approved Person (AP) is the point of sale from repository to serve you.
  • You can get the E-Insurance Account opening form from your Insurance Company, Insurance Repository or with Approved person.
  • Documents required for opening E-Insurance Account are
  1. Photo ID (PAN CArd or Aadhar Card)
  2. Recent Passport size photo.
  3. Cancelled Cheque (to pay future benefit directly to your account).
  4. Address Proof. (Ration card, Passport, Aadhar Card, Voter ID card, Driving license, Bank Passbook-not more than 6 months old, verified copies of -Electricity bill of not more than 6 months old, residence telephone bills of not more than 6 months old, registered lease or sale agreement, self declaration by High Court or Supreme Court judges, ID card with address of Central/State Govt Employees, Statutory/Regulatory Authorities, Public Sector Undertakings, Schedules commercial banks, public financial institutions, colleges affiliated to universities, professional bodies such as ICWAI, ICAI, Bar Council etc. to their members).
  • You can open this account even without having a single insurance policy too. But after buying you need to give request for demat format.
  • Once you submit all documents for opening E-Insurance Account your account will be opened within 7 days and you also receive the welcome kit which makes you familiar in dealing with this account.
  • Once you have E-Insurance Account during future buying you just need to mention your unique E-Insurance Account number into proposal form so that your new insurance company issue it in eIA format.
  • Authorized representiave of your eIA account will have only access to your account but not the policy benefit. But both nominee and authorized representative is same then he/she can get the policy benefits.
  • You can change authorized representative at any point of time.
  • You have the option to stay away from eIA account also. In such case your policy documents will be as is now in physical format.

 

 

35 Comments

  1. Hi Basavaraj,

    I have converted my Term plans to eIA account. Now do i need to maintain the physical documents of the policy or just the demat policy is sufficient?

    Thanks
    Anshuman

    Reply
      • Thanks!!

        Reply
  2. sir 1- how do I convert my current Lic policy into eia ac?
    2- can I sell the policy from my eia ac?

    Reply
    • Manish-Wait for deadline. It is again will extend. eInsurance is only for holding documents in e-format. Selling of insurance means?

      Reply
      • sell means can I surrender a policy ?? or I have to go to the Lic office? SBI life office for surrender? and plz tell how do I open a eIA ac in fundsindia.. and convert my Lic documents into eIA?

        Reply
        • Manish-Yes, for surrendering you have to visit the respective insurance company. Check the process explained with FundsIndia.

          Reply
  3. Does it make it easy to surrender a policy? I mean by click of a button, instead of visiting the agency branch office and submitting numerous documents and listening to all the nonsense from the branch manager?

    Reply
  4. Dear Sir,

    Is there any rating (based on service excellence) available for these 5 Insurance Repository Service providers? Which one can I choose as my Insurance Repository Service provider? Kindly clarify.

    Reply
      • Ok Sir. Thanks for your response.

        Reply
  5. I have policies from LIC. It is being said that to demat the policies, I need to get the form from LIC (after opening eIA account). In LIC wensite I’m not finding this form for demat request. Can you help me?

    Reply
      • when lic is likely to start demat services.

        Reply
  6. Sir, there are many policies in my name which premium is paid by
    1) me
    2) wife – for some policy
    3)huf – for some policy
    4) father – for some policy
    So by opening single demat can i add different payee. If yes then how
    Because we can link only one bank ac with demate

    Reply
    • Kamlesh-I don’t think you can do so. As it is free, why you want to retain one account?

      Reply
  7. Hi,
    I am getting calls from HDFC life to convert my policy to demat form..however I am not sure whether the calls are real or fake..how do i confirm

    is it mandatory to open eIA

    will the insurance representative approach us for EIA or we need to approach them

    Reply
    • Sachin-As of now it is not mandatory. But it is best to have your documents in demat format. So go ahead and convert it.

      Reply
  8. hello sir,
    my question is that why account detail are require is mendatory. becouse some are not comfort to share that. me also. so without it i can eiA.

    Reply
  9. is there any charge for eia.?if they took charge for the opening of this account what action will be taken into consideration to the respected person with regard to charges.

    Reply
    • Prakash-They will not charge anything to policy holders. But definitely to insurance companies, again it is cheaper for insurance companies to hold all documents in e-format than physical. So more cost efficient.

      Reply
  10. sir my relatives are not literate..they dont know how use computer and they are comfortable with physical form of policy..is it mandatory or not…but it is not useful for people who are illitreate..

    Reply
    • Sneha-If they are uncomfortable with demat format then they can retain it in physical format too.

      Reply
  11. Hi Basu,

    I have a Term Insurance policy with LIC and want to convert this into demat form. However, in the above insurance repositories’ websites, I don’t see LIC in the list of participating companies. Is LIC yet to join them?Can’t I convert my term policy into demat form? Please let me know.

    Thanks

    Reply
    • Sai-As of now they have not started this process. So you need to wait and watch to get a clarity about LIC.

      Reply
  12. Thanks for a very informative article.
    wanted to know that in case of ULIP’s. fund value statement will be updated on daily basis like MF unit statememt?

    Reply
  13. Hi Basavaraj,

    Excellent compilation.
    Am wondering, if the repository will take e- maintenance charges from insurer- am not sure if this is clear now, the insurance companies may incorporate these as hidden charges in the premium?

    The Demat account maintenance charges are taken from the customer.
    Rajni

    Reply
    • Rajni-If repository collecting the maintenance charges from insurer means indirectly insurance company will pass on these expenses to insured. But my view is that this change will reduce the expense ratio to some extent.

      Reply
  14. Hi Basavaraj,
    Looks good and Thanks for the information..

    Have the following questions for you…

    1. Is this E-Insurance Account-Demat has started functioning?
    2. After downloading and filling the form we need to submit the documents to AP (Approved Person). Where i can contact him?
    3. Once eia account is opened, i need to submit all the Physical insurance forms to the AP?
    4. If they are maintaining our policies they will charge some amount for that, whether we need to pay for it? Eventhough not now, they might charge in future?

    Thanks for your support for letting us know useful information immediately…

    Reply
    • Rameshkumar-Below are my answers.

      1) Yes it is started. But beginning hurdles will be there 🙂
      2) On respective repository sites you will find the details about Approved Person contact details. But as of now it is showing as “Coming soon” on NSDL site.
      3) Not required, you only need to submit the request for account opening with all the details about your existing insurance and necessary documents are enough.
      4) As of now it is free. Also I hope that this facility being the customer friendly initiative will be free for future too. So don’t worry about charges.

      Reply
  15. Very informative and clearly return..
    How Depository gets the fee ?

    Reply
    • Facial-Pleasure:) As of now they have not declared anything. But in my view it will be borne by Insurers. May be repositories will calculate and charge based on per policy pricing.

      Reply

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