Q. Can-policy holder have both paperelectronic policies?

Policy holders can chooseform"which they want their policies issued – paper or electronic A policy can be bought or maintained"one form only – either"electronic form or papernot"both However-policy holder can choose to keep some policies"electronic formothers"paper form – onlyelectronic policies will be reflected"his e IA accounthe can use repository services only fore policies (and notpaper policies)

Q. Can anyone become or set upInsurance Repository?

No only entities approved by Insurance RegulatoryDevelopment Authority (IRDA) can becomeInsurance Repository
Insurance Companies cannot set upInsurance Repositorytheir own nor can they hold more than 10 stake"any Insurance Repository
Source CAMS

Q. Can I take health insurance plan for my parents whosenior citizen Is there any tax benefit available if I pay premium for them?

Yes you can take health insurance plan for your parents whosenior citizen Now-day’s so many insurance company has designed product especially for senior citizens Youalso eligible to claim tax deduction us 80D upto Rs 20000- PA if you pay premium for them


Q. Can policy holders have multiple e Insurance Accounts if they have multiple Insurance policies issued by various Insurance Companies?

No IRDA stipulates thatindividual can have only ONE e Insurance Account across Repositories irrespectivethe numberpolicies owned by-policy holder – thus if-person hase IA"say Repository A"any other Insurance Repository All Repositories will have systems"place to check this before openinge IA – any application for-second or multiple e IA will be rejected byInsurance Repository Allelectronic policies owned by-policy holder can be credited or held under this single e IA
Source CAMS

Q. CaneIA be operated byPolicy holder only?

Yese IA can be operated byaccount holder only during his life time unlesscourse he has been unfortunately rendered incapable to operate it (incapacity due to mentally unsound means or terminally ill as certified by-medical practitioner) In such circumstancese IA may be operated byAuthorized Representative (AR) appointed byaccount holder (pl see below for details)

The account holder is strongly advised to keeplog In IDpassword for online accesshis e IA confidentialnot share it"anyone else

Q. How can Insurance Repository provide free service to policy holders Where iscatch?

The Insurance Repositories will be paid directly byInsurance Companies whose policiesheld"electronic form"the respective Insurance Repository so that no chargesleviedpolicy holders Insurance Companies will be able to payfees outthe savings that will accrue to them bymigration to issuancemaintenancepolicies"electronic form

Q. How do I collectmaturity amount frominsurance company?

Insurance companies send information"advance topolicyholder regardingmaturitythe policy The policyholder will be required to fill-upforms along"the documents attached as per requirement Ifpaper work is done properlyverified thenpayment is either sent by post or directly credited"your bank account

Q. How do I convert my existing paper policy into electronic form?

On openinge IA you just need to write out-request addressed toInsurer for converting your existing paper policy to electronic mode Request Forms for policy conversionavailable"all officesthe respective Insurance Repositories They can also be downloadedrespective websites You need to fill out-separate request for each paper policy that you wish to convert to electronic form These requests duly signed can be submitted atrespective Insurance Company or at any Insurance Repository office

If you do not havee IA you can submite IA opening form"the necessary supporting documents along"the request for converting paper policy to electronic mode

Q. How do I opene Insurance Account (eIA)?

To opene IA you needfill outaccount opening application formthe Insurance Repository along"the necessary supporting documents Application Forms would be available"all officesthe Insurance Repository once theyoperational They can also be downloaded fromrespective website or you can fill outapplication online atwebsite) You can also contact your Insurance Advisor (Agent) forapplication form You can submitsigned e IA application form at any Insurance Repository office If youapplying to opene IA attimebuying-new Insurance Policy it may be best to hand overe IA form along"the insurance proposal form toInsurance Company

To opene IA you need to necessarily have either-PAN or Aadhar number When submitting your e IA application please ensure that you provide copiesyour PAN or Aadhar Address Proofproofdatebirth along"a passport size photograph You also need to showoriginaladdress proof for verification (the listacceptable address proof documents is given elsewhere)

Q. How do I reducecostbuying life insurance?

The costa policy could be lowered if one starts buying insurance atearly age (whilerisk is lower) A longer duration policy along"large sum assured would also reducecost Also you will avail discounts if you offer to pay premium annually Select-low cost policy such as-Term product Do not buy riders or additional benefits that may not beadditional benefit to you

Q. How do I understand-life insurance Policy?

It is necessary to knowfollowing terms"order to understand-life insurance policy

Premium -amountmoney you have to pay to continue your insurance coverage
The premium amount depends upon
• Your age
• Policy selected
• Modepremium payment
• Termpremium payment
• Termthe policy

You could choose to pay premium monthly (as-deductionyour salary) quarterly half yearly or annually However thereSingle premium policiesyou pay premium once only (hence you do not havefacility to makeeffortpaying premium regularly)

Term -numberyears you choose to insure yourself
The longertermlowerpremium Policy terms vary from-single year to-maximum55 years Not all policies offer you-rangeterms

Premium paying term -numberyears you pay premiumyour policy
The longerpremium paying termlowerpremium Usuallypremium paying term issame aspolicy term However some policies offer youoptionselecting-premium paying term that is lower thanpolicy term

Sum Assured Face amount -amountinsurance cover you have orminimum amount your family receives"the eventyour demise
Your family could get more than this amount basedthe typepolicy or riders that you select

Bonus Participating profit - is declared byinsurance company each year as-proportionthe sum assured This amount could vary it could be different for different policiesterms
Although declared each yearbonus is-lump sum payment made toinsured person upon maturity or to his family upon death"addition tosum assured

Bonus is based oninsurance company’s assumptions aboutfuture performance Like any other assumption actual results will be more or less favourable The longertime being projectedgreaterlikelihoodvariance frompredicted values Not all companies guaranteeamountbonuseach policy

Guaranteed Addition - is-declaration made byinsurance company it states that irrespectivethe financial resultsthe companycompany will payguaranteed amountmoney toinsured or his nominee
Likebonus amount this is-lump sum payment made toinsured upon maturity or to his family upon death"addition tosum assured

Survival Benefit - isamountmoney received at pre-fixed regular intervals byinsured person upon survivalthe termthe policy
Often money received upon maturity or atendthe termthe policy is also referred to as Survival benefit

Maturity Benefit - isamountmoney received byinsured upon survivalthe termthe policy
In casepolicies that offer-bonussum assured plusbonus fortermthe policy is paid toinsured upon maturity In addition some policies offer-loyalty additionis paid as-proportionthe sum assuredis basedthe termthe policy
In casepolicies that offer no bonus upon maturitysum assured or-refundthe premium or no money is receivable byinsured (dependingthe typepolicy selected)

Cover or Death Benefit - isamountmoneynominee receives frominsurance company uponinsured’s death In addition tosum assured this would includebonus if any
If additional riders such as Accident Death Benefit or Additional Sum Assured have been selectedamountmoney receivable bynominee could be higher

Returns or Pre-tax yields - Interest earnedthe premium on-compounded basis ispre-tax yield

Post-tax yields - Ifpremium paid for-life insurance policy is used as-tax deduction under section 80C theneffective premium paid byinsured is lower Interest earnedthe effective premium on-compounded basis is known aspost-tax yield

Source SBI Life Insurance

Q. How long will it take forInsurance Repository to open AN e Insurance Account?

The Insurance Repository will opene Insurance Account within 7 business days fromdatereceivingeIA application form On openinge IAInsurance Repository will informapplicantparticularsthe e Insurance Accountusage instructions through emailby post

Q. How much does life insurance cost?

The costbuyinginsurance policy dependsthe following factors
The insured person’s age healthhis naturework
Typepolicy selected
Sum assured
Policy terms
Term for paying premiumpayment frequency
Riders (if any) attached topolicy

Q. How much health insurance I should opt?

Looking topresent medical cost we should take min sum assured3 lacks We should also keep"mind that once we will be suffered fromdisease then sum assured will not increase so we should consider higher sum assured to cover inflationary medical cost for future

Q. How much sum assured I should take?

Theretwo methodsdecidingsum assuredis human life valueneed based analysis One should use need based analysis method for deciding sum assured In need based analysis method we should add survivors living expenses future valueoutstanding life goals outstanding debt costdying (funeral estate lawyers fees etc)subtracts saleable investmentsinsurance already available The difference issum assured required

Q. How pension plan works?

Pension plansalso known as retirement plans for your future financial stability during your old age With ever increasing costliving it has become important that you make arrangements for your retired life When you continually invest"this plan it grows"the compounding effect

Q. I am healthy Why should I take health insurance?

Insurance cover is always available for uncertain event once we sufferany disease it is difficult to take coverage for such disease Life is fulluncertainties we do not know when we will be sufferdiseasesaccident so it is better to take health insurance when wehealthy When wehealthy we have numberchoices availablewe can choosebestaffordable plan for us

Q. I do not believe"taking health insurance insteadthat I prefer"creating my own fund?

It is good to create-fundonce we sufferdiseases then our fund will last Whereas"health insurance if we availed total sum assured"one policy year then again"next policy year same sum assured is available to us even if we suffermajor diseases If we seeyearly premiumhealth insurance it is ranging1 to 3sum assuredis negligible We also gettax benefitpremium paid for health insurance

Q. I have not paid premium for some time Can I revive my policy?

For-regular premium paying policy premium has to be paid within 30 daysthe due date (15 days ifmode selected is monthly) The insurance company provides-grace period duringyou can paypremiumkeeppolicy"force Ifpremium has not been paid withingrace periodpolicy is considered lapsed

Insurance companies offer various schemes that facilitateprocessreviving lapsed policies A fewmentioned below -

• Paying allarrearspremiumthe interest forsame period can revivepolicy In certain casescompany may offer installment revival schemesyou pay-partthe arrear along"the regular premiumthe balancethe revival amount is paid"instalments spread over-yeartwo years

• Under another scheme-money-back policy can be revived by usingsurvival benefit underpolicy (the money receivable frominsurance company at regular intervals) to pay premium plus interest (Ifsurvival benefit amount is lower thanrevival value you have to payshortfall If it is higher you receiveexcess amount)

Source SBI Life Insurance

Q. I have not paid premium for some time I want to discontinue my policy Do I get anything back frominsurance company?

The policy holder may get-proportionthe premium back basedtwo conditions The insurance company givesoptiongrace period duringyou can paypremiumkeeppolicy"force
Ifpolicy is been less than 3 years old since you purchased your policynot paid premium then you may not receive any money back frominsurance company
If you have paid premium for more than 3 consecutive years you will receive-proportionthe premium paid depending uponassured sumthe accrued bonus if any Howeversurrender value will vary by companypolicy
The surrender value dependsfactors like typepolicy amountpremium policy term numberyears for whichpremium has been paidaccumulated bonus

Q. If I already havee IA how do I buy-new policy"electronic form?

Once you have openede Insurance Account it is quite simple to buy-new policy"electronic form You just need to quote your unique e IA Number"your new insurance proposal form"a request to issue policy"electronic form Since KYC documents had already been submittedverified when you opened your e IAInsurer will not do KYC again provided there has been no change to your KYC details makingprocess simplerconvenient for you

Q. Is it compulsory for all Insurance Companies to offer electronic policies?

Yes It ispolicy holder’s prerogative to opt for-policy"electronic form If-policy holder wants hisher policy (either new purchase or existing)"electronic form thenInsurer is bound to fulfill his her requirement

The choicea Repository for openinge IA isprerogativethe policy holderhence all Insurance Companies will need to work"allInsurance Repositories

Initially repository service will be available for life insurance only over time healthgeneral insurance (personal lines only) will also be brought withinambitrepository services

Q. Is it compulsory to issue policies"only electronic form (ie is dematerializationinsurance policies compulsory as"the caseshares)?

No it is not (yet) compulsory to issue insurance policies only"electronic form

Policy holders can chooseform"which they want their policies issued – paper or electronic

Q. Should I buy-life insurance policy even if my employer has insured me"a group insurance scheme?

It is always sensible to buyindividual life insurance policy because
a The amountinsurance covered by your company may not be-very large cover
b If your employer decides to cut cost then you may no longer be covered
c If you quitcompany then you may no longer be insured
d Age also plays-role The premium goes high as you start getting older

Q. Should I take Life Insurance?

A person who have dependents (especially if they areprimary provider) or significant debts that outweigh ones assets then you need insurance to ensure that your dependentslooked after if something happens to you

However buying life insurance doesnt make sense for everyone If you have no dependentsenough assets to cover your debts survivor living expenses outstanding life goalsthe costdying (funeral estate lawyers fees etc) then insurance isunnecessary cost for you
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