Maintaining and tracking insurance policies just got easier. Backed by the finance minister, the insurance regulatory development authority (IRDA) on Monday launched the country's first insurance repository system. It will allow customers to store and track all their policies under a single electronic account, reports CNBC-TV18’s Manasvi Ghelani.
Finance Minister P Chidambaram was in Hyderabad on Monday to launch the insurance repository system (IRS), which IRDA termed as the "first-of-its-kind in the world."
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So what does the IRS do? Basically, it allows insurance owners to hold and track all their policies electronically.
The salient features of the IRS are:
- Free e-insurance account
- e-policies to mitigate the risks of damage
- No need to fill multiple kyc forms
According to the IRDA - five companies -NSDL database management limited, central insurance, SHCIL projects limited, Karvy insurance and CAMS - have been given the status of insurance repositories which will capture Know Your Customer (KYC) data, convert the policies into electronic mode, and take care of the ongoing servicing needs of policyholders.
The repository will issue a unique code number to all policyholders, and all their policies will be pulled in that.
“This will help to bring down cost for insurance companies and for policyholders too. There was no way to until today to keep records of multiple payments through on a platform. It gives him additional touch points in reach and cost advantages”, says Viiveck Verma, ED, Karvy Insurance
Reducing costs for insurance cos
One can open an e-insurance account right away. For now, it can only be life insurance specific. Finance Minister P Chidambaram also called for faster action for the same.
“I have urged the authority and the chairman to announce a timetable under which voluntary digitization will become mandatory for all polices beginning with life and moving to non-life”, says P Chidambaram, Finance Minister.
Fast tracking insurance data
Insurance data, a click away!
As customers wait for the service to expand, IRDA, at its end, hopes to improve insurance penetration and provide policy holders with services that meet international standards.