Old insurance policies can be converted into Demat format

K. ARAVIND

Demat old insurance policies so that you get to know all the information about the policy with the click of a mouse. For this, the policyholder has to open an e-insurance account. The biggest advantage of demating insurance policies is that you can avoid the hassle of keeping policies in paper form.

At present, when taking out a life insurance policy with a premium of more than Rs.10,000, the policy document is issued electronically. Older policies can also be made electronic.

The IRDA has assigned insurance repositories such as CAMS Repository Services, Karvy Insurance Repository Limited, SHCIL, NSDL Database Management Limited and Central Insurance Repository Limited to open e-insurance accounts. Life insurance companies must have a partnership with any of these repositories. The policy e-insurance account will be opened through these repositories. It usually takes seven days to open an e-insurance account through repositories.

Insurance repositories need to be approached to convert existing life insurance policies into Demat form. The application should be submitted in the prescribed form. The details of the policyholder and the bank account details should be stated in the application. A passport size photo needs to be affixed on the application form.

After opening the account, one can apply to turn the old policy into an electronic format. Policy details should be mentioned in the application. The policy will be credited to the account upon receipt of the application.

IRDA e-Insurance was launched in 2014. There are no special charges for opening an e-Insurance Account or Demating a policy. The cost of this will be borne by the insurance company.

E-insurance is similar to holding shares in a Demat account. If you need a paper document, all you have to do is go to the e-insurance account and print the policy. e-insurance can save you the headaches caused by loss or damage of policy documents.

The policy document is required at the time of filing the claim and at the time of withdrawal after the expiry of the insurance period. If the policy document is not available at this time, complex paperwork will be required to obtain the duplicate document. Such difficulties can be avoided with an e-account.

All policy details can be accessed through an account. The premium for all policies can be paid online. Complaints can be lodged through e-account.

If you have an e-account, you do not have to go through the KYC rules again when buying a new policy. Remittances and annual statements for payment of premium will be available through the e-account.

At the same time, it is not possible to surrender the policy or switch funds of ULIPs through e-account. For this you have to approach the insurance company directly.