Navigating the maze that is personal finance

Monday, 3 October 2016

Your definitive guide to e-Insurance (eIA)

Electronic insurance or e-insurance (eIA) accounts have become mandatory since 1st October 2016. You need to have an account if you want to buy insurance from now on.

What is an e-Insurance account?

According to the IRDAI (Insurance Regulatory and Development Authority of India) “e-Insurance account is the portfolio of insurance policies of a policyholder held in an electronic form with an insurance repository.”

Hitherto insurance policies were made available in physical mode only. eIA allows for purchase of insurance in dematerialized or demat form.

Which insurance policies require an e-Insurance account?

If you are wondering what type of insurance policies need to stored electronically, take a look at the table below. I have sourced it from the IRDAI notification F.NO.IRDAI/REG/16/128/2016, DATED 13-6-2016. You can find the detailed notification here

Type of insurance
Sum Insured (equal to or exceeding) (in Rs.)
Single/Annual Premium
(equal to or exceeding)
Pure term (excluding term with ROP*)
10,00,000/-
10,000/-
Other than Pure term (including term with ROP*)
1,00,000/-
10,000/-
Pension policies
NA
10,000/-
Immediate Annuities
(Pension p.a.)
NA
10,000/-
All retail General Insurance policies except Motor
10,00,000/-
5,000/-
Individual Health
5,00,000/-
10,000/-
Motor Retail
All policies
All policies
Individual Personal Accident & Domestic Travel
10,00,000/-
5,000/-
Individual Travel Insurance (Overseas)
All policies

* ROP (Return of premium life insurance) is a type of term life insurance policy that returns the premiums paid for coverage if the insured party survives the policy's term.

How to open an e-Insurance account?

You need to choose one of the five authorized insurance repository which are authorized by IRDAI to for maintaining data of insurance policies in electronic form on behalf of Insurers. You can buy and keep  all  your  policies  with any one of the following repository. Before selecting your repository do not forget to contact your insurance provider to check if they have already partnered with a particular repository.
1.    NSDL Database Management Limited  
2.    Central Insurance Repository Limited
3.    SHCIL Projects Limited 
4.    Karvy Insurance Repository Limited  
5.    CAMS Repository Services Limited

You need to download/fill the account opening form from the website of the repository or the insurer. The filled form should then be submitted  along with a photo ID, recent passport size photograph,  cancelled cheque ( In case of ECS/NEFT services for insurance premium payment transaction) and address proof    to  the  office  of  Insurance  Repository  or  insurance  company  or  authorized  Approved  Person**  (AP)  appointed  by  Insurance  Repository (IR).

** An Approved Person is a Point of Sale (PoS) appointed by Insurance Repository and will be working on behalf of Insurance Repository to extend the IR services.

The AP/insurer will verify the KYC documents and process the application. Post that the Insurance Repository will open the account and send the ID and password via text and e-mail to you.








One thing to note is that you do not have to pay in order to create and operate an e-Insurance account. It is provided free of charge. Another important rule is that you can only open one e-Insurance account at a time, you cannot have multiple e-Insurance accounts.

You can download this file available on the IRDAI website in case you have more questions.
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1 comments:

  1. Traveling is also a point of Insurance. Great article.

    ReplyDelete

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