Reliance Life Insurance Company (RLIC), part of Reliance Capital Ltd, recently announced the launch of life insurance policies in electronic demat form across all its products.
The announcement was made by Mr. Anup Rau, Chief Executive Officer, RLIC, in Mumbai. This initiative follows the recent inauguration of Insurance Regulatory and Development Authority’s (IRDAs) Insurance Repository System (IRS) by Finance Minister Mr. P Chidambaram in Hyderabad last week to enable and encourage policy holders to hold their insurance policies in demat form.
Reliance Life Insurance is amongst the first few private insurers to offer policy holders the option to hold their insurance policies in electronic demat form.
‘’This green initiative is aimed at complementing the regulator’s efforts to save hundreds of crores spent on printing, dispatching & storing insurance policies by the industry. This initiative will make it easier for the customers to buy & monitor multiple life insurance policies in a single demat account” Mr. Rau said.
As per the process, a policy holder can choose to open an E-Insurance (EI) Account with any one of the 5 approved insurance repository by providing their (KYC - know Your Cusutomer) documents, which include address and identity proof etc. Thereafter, the policy holder would be allotted a unique EI Account number and will have the choice to dematerialize existing policies in the EI Account.
IRDA has approved 5 companies – Database Management Limited, Central Insurance Repository Limited, SHCIL Projects Limited, CAMS Repository Services Limited and Karvy Insurance Limited – as Insurance Repositories (IR).
“The electronic insurance account will eliminate repetitive KYC requirements and provide one view of policies, premium paid and claim history and nominee details and bring in all the benefits of demat to the life insurance business, including automatic reminders for premium,” Rau added.
Reliance Life Insurance would encourage its over 90 lakh customers to convert their insurance policies from physical format to demat form. The novel system will also undertake changes, modifications & revisions in the insurance policy with speed and accuracy.
“Dematerialization of policies will bring greater transparency and convenience to customers and it will also help reduce cost in issuing and maintaining life insurance policies. More importantly, it will also ease the problem of customer-contactability, which is a huge challenge faced by the industry,” he added.
Steps for opening an EI Account with an Insurance Repository:
** Applicant submits a duly filled & signed EI Account Opening Form and also submits necessary KYC documents to Insurance Repository (IR).
** Documents and Forms are scrutinized for its completeness and acceptance.
** IR initiates the process of opening EI Account.
** On successful account opening, IR intimates the insurer and the applicant with the unique EI account number.
** Applicant informs the insurer of the EI Account number
** Insurer updates its systems with the Account Number for future reference.
** The Applicant can use this unique EI Account number for converting existing insurance policies (of insurers providing electronic policy option) in demat form.
** Applicant also informs the EI Account number to insurer while buying new policy. KYC requirement to be taken from the EI Account by the insurer.
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