The Insurance Regulatory and Development Authority (IRDA) has stated that the Insurance Repository System was launched on September 16, 2013 with the objective to provide policy holders a facility to keep insurance policies in electronic form and to undertake changes, modifications and revisions in the insurance policy with speed and accuracy in order to bring about efficiency, transparency and cost reduction in the issuance and maintenance of insurance policies.
This was stated by Union Minister of State for Finance, Namo Narain Meena, in written reply to a question in the Lok Sabha recently.
Benefits to the policy holders are as under:
• The policy holders are relieved of the problems of storing, retrieving and safe custody of the physical insurance policies.
• Possible reduction in premium owing to the electronic issuance and maintenance of the insurance policies due to the cost efficiencies.
• The policy holders are able to view the status of all his/her insurance policies held under an electronic Insurance Account (elA) at one place.
• Majority of the service requests can be placed with the Insurance Repositories who will facilitate the delivery of the service by the Insurance companies. The policy holder is relieved from the trouble of visiting offices of multiple insurance companies to address change requests like change of address/nomination etc.
• The elA holder can appoint an ‘authorized representative’ who can operate the account in case of death or disability of the policy holder to facilitate the nominees/assignees in claiming the benefits under the insurance policies.