Promising business vertical in India due to growth and returns scale witnessed by demographic status. Countrymen are now more educated and showing concern on reducing the risk of human life and its most loved non-life assets in their kitty. The growth of Insurance Company and its business is exponential. Business environment is further supported by Government initiatives on digitalization of business process and increase in the limit of foreign direct investment in Insurance Company. Obviously it can be placed as an instrumental to explore more and wide market ahead.
Unlike earlier, the paper policy is been more accident prone like missing, tearing, spoiling and so on if the precaution is not built upfront at par. Therefore Authority as well as its stakeholders including market participants are regularly working to enhance the user experience and accordingly to avoid or reduce the use of Insurance Policy on paper. Now authority with different guidelines and regulation, open the space for budding entrepreneur to work on digitalization of insurance paper. This is another welcoming and appreciating step towards the digitalization of entire concept of Insurance Industry. It is playing crucial role to serve the Indian Insurance Market.
What is Insurance Repository?
Insurance Repository means company formed and registered under the Companies Act, 2013 as a public company and which has been granted a certificate of registration by Insurance Regulatory and Development Authority (IRDAI) for insurance policies data management in electronic form on behalf of Insurers. It provides ease of holding insurance policies issued in electronic form.
Object of Insurance Repository:
The single sole objective of launching this segment is to provide policyholders a facility to keep insurance policies in electronic form and to undertake the changes, modification and revisions in the insurance policy to fasten the regular speed and accuracy more precisely in order to bring about efficiency, transparency and cost reduction in the issuance and maintenance of insurance policies.
Terms to Know
- Applicant: Only public limited company can be applicant incorporated with at least INR 5 lakh as capital, with Net Owned Fund requirements of INR 25 Crore at the time of application for the registration as an Insurance Repository.
- E-Insurance Account (eIA): It is an electronic account opened by a person with an insurance repository wherein the portfolios of insurance policies of a policyholders are held in an electronic form.
- E-insurance policy (eIP): it means policy document which is an evidence of insurance contract issued by an insurer digitally signed in accordance with applicable provision. Further it is issued in an electronic form either directly to the policyholder or through the platform of registered insurance repository.
- Insurance Transaction Exchange, in short “iTrex” is a central index server that offers de-duplication services and acts as a messaging hub between entities creating eIAs, electronic policies and their servicing. It shall be maintained and managed by the Insurance Information Bureau of India (IIBI). It work as KYC repository among the stake holders.
- Shell-Insurance Account (s-IA): It is an electronic account wherein the brief portfolio of insurance policies of policyholders (including prospective) like Name, Date of Birth, Address and Policy Number is held in an electronic form with iTrex.
- Approved person: it means an entity appointed by an insurance repository as its agent to perform certain assigned tasks in relation to and incidental to the functions of insurance repository.