Electronic form on behalf of insurers.
In effect an insurance repository facilitates the holding of insurance policies in the electronic form, just like NSDL and CDSL do it for shares. This eliminates the need for holding insurance certificates in the electronic form.
This also enables the repository to makes modifications and revisions in the insurance policy with speed and accuracy, in cases of changes in the insurance policy.
In addition, the repository acts as a single stop for several policy service requirements. The Insurance repository system also brings about efficiency and transparency in the issuance and maintenance of insurance policies.
Can any individual/firm act as an Insurance Repository?
No, Only an entity which is registered under Company's Act and who is granted a ‘Certificate of
Registration' by Insurance Regulatory and Development Authority (IRDA) can act as an
Can Insurance repository sell/solicit Insurance policy?
No, Insurance repositories cannot sell/solicit insurance policies. They are authorized only to
maintain the policies in electronic form and provide a service record of all insurance policies.
Union finance minister P Chidambaram recently launched the IRDA's insurance repository system (IRS).
The insurance regulatory and development authority (IRDA) said the insurance repository system set up by the regulator will be the first of its kind in the world.
IRDA recently said five companies have been given the status of insurance repositories and provided with a licence that will be valid till July 31, 2014.
The five companies are: NSDL Database Management Limited, Central Insurance Repository Limited, SHCIL Projects Limited, CAMS Repository Services Limited and Karvy Insurance Repository Limited. IRDA recently said that insurers can enter into agreements with one or more repositories.