Monday, October 14, 2013

Insurance repository

Insurance repository is a facility that allows you to hold insurance plans in the demat form. As is the case with shares and bonds, which can be held in a demat account with a depository, you can keep your insurance policies in an e-insurance account with an insurance repository. Even if you have policies from multiple insurance companies, they can be stored in the same account. As of now, only life insurance policies and pension plans are being allowed to be held in e-insurance accounts. The facility will eventually be extended to health, car, home and other forms of general insurance. The policyholder has to pay nothing to open an e-insurance account or hold the policies in the demat form. The insurance companies will recoup their costs from the savings in policy issuance and delivery. IRDA has given five companies 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.

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