Single Insurance Demat Account
In 2013 the central government, through the finance ministry, launched a system that would allow policyholders to hold all of their policies in dematerialized (demat) form under a single insurance account, or e-insurance account (e-IA). Thus, instead of physically maintaining files and managing documents, all insurance policies held by an individual can be managed in a single demat account—just like stocks and mutual funds are maintained online. But as of now, the opening of insurance demat account is optional for the policyholder. Any of the five insurance repository agencies approved by Insurance Regulatory and Development Authority (IRDA) allows users to hold such accounts with them. The five companies providing repository services are Central Insurance Repository Ltd, Karvy Insurance Repository Ltd, NSDL Database Management Ltd, SHCIL Projects Ltd, and CAMS Repository Services Ltd. These companies will open e-insurance accounts and maintain data related to policies, and will be connected to insurance companies for updating accounts with the latest activities of users and to ensure seamless service to them.
Here’s how to go about opening the account: — Fill in a form with any of the five repositories mentioned above. An individual can open only one
such account, which will bear a unique e-insurance account number. — The information regarding this account can be accessed on the website of the repository service
provider via a login and a password provided by the repository at the time of activation of the account. — For those seeking a new policy and e-IA, the best possible way is to submit the form along with relevant documents and insurance proposal to the insurance company, who in turn will handle the account opening procedure and storing of the e-policy there.
— An e-IA can be opened using various identity and address proofs. — The e-IA is offered absolutely free to the policyholder. A demat insurance account will be opened by
the repository within seven business days from the date of receiving the application form.
Benefits of a demat insurance account
— Your policies in an electronic form ensure safety from any physical damage to policy documents. — All kinds of insurance policies such as health, pension and term plans can be kept in the electronic
form under a single account. — All information on these plans can be accessed through the account, along with the option to pay the
premium online. — The account also serves as a single point of service for all requests related to your policies without the
need to visit any branch physically. — The demat insurance account frees you from the hassle of going through the KYC verification when
you buy an additional e-policy. — Any changes to your personal details (telephone number, address, etc.) can be notified directly to your account-holding repository, which in turn will inform the insurance companies of the related change. E-insurance in India is still in the process of reaching a critical mass. While buying a new e-insurance policy, customers should make sure that their insurance company has ties with your account-holding repository to avoid any hiccups.