The IRDA’s insurance repositories will be inaugurated by P. Chidambaram, the Union Finance Minister, on the September 16th. This is a first time unique insurance repository of its kind that will have the insurers offer policies under a unique number code, which will be registered with the insurance repositories, authorized by the IRDA.
The IRDA’s system
Insurance Regulatory and Development Authority (IRDA), handed over a note that that stated that the novel system conjured by the regulator makes the insurance repository one of its kind.
The IRDA has decided to hand over the license to about five companies and these organizations will be holding the status of insurance repositories. The validity of the license handed out by the IRDA will be till July 31, 2014. The five companies targeted by the IRDA as insurance repositories are Central Insurance Repository Ltd, NSDL Database Management Ltd, CAMS Repository Services Ltd, SHCIL Projects Ltd, and Karvy Insurance Repository Ltd.
The insurance repositories
After this the IRDA gives permission to the insurers to pick and choose a repository of their choice and can chalk out agreements with the insurance repository of their choice. The insurers can opt out for more than one repository as well.
To all those people who are signing up for the insurance policies, the insurance repositories will be handing over a unique code number. The policy holders will have this code under which all their policies will be kept and they can be accessed whenever needed by using the specific number code.
Sources say that the IRDA assures that “the objective of creating an insurance repository is to provide policyholders a facility to keep insurance policies in electronic form and to undertake changes, modifications and revisions in the insurance policy with speed and accuracy in order to bring about efficiency, transparency and cost reduction in the issuance and maintenance of insurance policies.”
The unique code number will have details of the policy, the total history of all the nominees, claims, beneficiaries and other details regarding the policy holder.