Wouldn’t life be much simpler if you could store all your insurance policies in one place electronically and manage it online? Working professionals know how cumbersome it gets at the time of filing income tax returns when one has to search and sift through numerous pages of various insurance policies tucked away “safely” in some cupboard at your home. And there is always a nagging feeling at the back of your mind that something is being left out.
Well, not anymore! The finance ministry, in 2013, launched a system which allows policyholders to hold all of their policies in a dematerialised (demat) form under a single insurance account or e-Insurance account (e-IA). 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.
Any of the five insurance repository agencies approved by Insurance Regulatory & Development Authority (IRDA) -the insurance regulator in India, allow 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, 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.
How to open an insurance demat account
Now you know how to hold your insurance policies online in a single account. Here’s how to go about opening the account:
The e-insurance account is offered absolutely free to the policy holder. 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 such as theft, fire, etc. 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.
Also, the demat insurance account frees you, from the hassle of going through the KYC (know-your-customer) verification when you buy an additional e-policy. Any changes to your personal details such as the change in 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.
About HDFC Life
HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Click here to know more about demat insurance services provided by HDFC Life.