All you wanted know about your insurance repository e-policy account

Finance Minister P Chidambaram launched the Insurance Regulatory and Development Authority’s (IRDA) insurance repository system (IRS) yesterday. If you are wondering what that is and how this move could affect you, read on.

What is IRS: The Insurance Repository System is a repository which will help you keep your policies in electronic form. In fact, you will be able to store all your insurance policies under a single electronic insurance account– pretty similar to holding your mutual funds and shares in a demat form.

Which companies: As of now the insurance regulator has permitted NSDL Database Management Ltd, SHCIL Projects Ltd, Central Insurance Repository Ltd , Karvy Insurance Repository Ltd and CAMS Repository Services Ltd to act as insurance repositories.

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[caption id=“attachment_1115017” align=“alignleft” width=“380”]  Insurance companies will have to link themselves with anyone of these companies. Reuters[/caption]

How would thiswork: Insurance companies will have to link themselves with anyone of these companies. You will have to open an electronic insurance account with them, by providing relevant documents. You will get an electronic insurance account number which you need to provide your insurer when you buy a new insurance policy to get your policy in an electronic form. Not only new policies, even your existing ones can be converted, by getting in touch with your insurance or repository company.

**Benefits:**The system will open a single window for you to access all your policies. Moreover, since all of them are held in electronic form, you need not be bothered about your physical policy getting damaged, misplaced or lost. Also, if you need to make changes in your personal details, like a change in contact details, you just need to do so in the electronic policy account, and all your policies will be updated by the repository. This will save you the headache of changing your details across various insurers. In fact managing your policies will also be easier.

Things to know: You can open an electronic insurance account as of now, but give it some time to get your policies in electronic format. The insurers and repositories still need to get some things in place as far as systems go. So you could open an account online free of cost with any repository.

Concerns: An insurance expert told Firstpost that since your data will be available with the repository, sharing of your private data cannot be ruled out. And one of the biggest insurers did resist this initiative due to fear of their customer data getting leaked to other insurers. “The insurance repository before commencing the operations shall put in place measures to safeguard theprivacy of the data maintained and adequate systems to prevent manipulation of records andtransactions,“the regulatory guidelines says, though.

As of now, the move seems to work well for policy holders. To know for sure, we will have to wait and watch.