Friday, September 27, 2013

FM has asked Life Insurance Corporation of India to appoint board members in 50 companies


NEW DELHI: The Finance Ministry has asked Life Insurance Corporation of India to appoint board members in 50 companies in which it has a stake and no representation. 

The insurance behemoth has stakes in about 123 companies, of which it has board members in 73 firms, while there is no representation in 50 companies, a senior Finance Ministry official said. 

http://economictimes.indiatimes.com/news/economy/policy/finance-ministry-asks-lic-to-name-board-members-in-50-firms/

Tuesday, September 24, 2013

Life Insurance Certificates to be in D-mat format

One of the easiest and convenient way of handling the documents will be in electronic format or in dematerialized format. Advantages are already known to all by having stocks, FDs, Mutual Funds or Bonds. Now the turn is for your Insurance Policies.
To secure the policy documents and serve the clients in a better way IRDA recently launched the Repository system which will keep all your Insurance Policy documents into electronic format. Let us see the procedure and how we can convert our policies to E-Insurance.
The advantages of having your policy documents in Demat form-
  • It provides fair treatment to policy holders as there will be no possibility of loosing your documents.
  • This facility totally eliminates paper and storage risk of your policy documents.
  • It automatically improves the speedy genuine claim settlements and present frauds.
  • One time KYC for insurance buying irrespective of company product you want to buy.
  • Change in address, nominee or other related services can be done at a single point of service. These changes will automatically update all your insurance policies irrespective of company.
  • It will drastically reduce of mis-selling. Currently few agents used to keep the policy documents with them till the expiry of 15 days free look period, which will not be possible from now.
  • It will reduce your policy maintenance expenses drastically. For example LIC spends around Rs.500 to Rs.600 in storing a policy.
  • Your premium may get reduced. But don’t to what level as insurers need to pay to demat providers also.
  • You can pay for all your demat policies at one point by login to your account.
What do you mean by Insurance Repositories?
These are the registered companies who got approval from IRDA to maintain the data in demat form on behalf of insurance companies. Below is the list of such repositories who currently got approval from IRDA.
Below are the few points related to this service
  • You can keep all your existing policies as well as future policies with anyone of the above repositories indemat format.
  • As told above you can convert your existing physical documents of policies into demat format.
  • Such account of holding in demat format is called as eIA (Electronic Insurance Account).
  • With the click of button on your account, you can view all your existing policies.
  • Repositories acting as single stop shop, you can change address, nomination and other service related request with speed and accuracy.
  • You need one time KYC formalities while opening the account irrespective of Insurance Company you are dealing with.
  • You can convert your Life Insurance, Health Insurance, Pension Policies and General Insurance Policies into eIA format. But currently you are able to convert only Life Insurance policies only.
  • This facility is “Free of Cost“.
  • You can nominate someone to operate this account in case of your demise or disability for further processing of claim settlement.
  • If you are not satisfied with one repository then you can switch any other above listed repositories.
  • You will receive the annul statement from repository about the details of holding policies.
  • The above said repositories can only act as a service provider but can’t sell insurance policies to you. So feel free :)
  • Each user will have unique Login ID and Password which will also have unique Account Number.
  • You can not open multiple e-Insurance Accounts.
  • Approved Person (AP) is the point of sale from repository to serve you.
  • You can get the E-Insurance Account opening form from your Insurance Company, Insurance Repository or with Approved person.
  • Documents required for opening E-Insurance Account are
  1. Photo ID (PAN CArd or Aadhar Card)
  2. Recent Passport size photo.
  3. Cancelled Cheque (to pay future benefit directly to your account).
  4. Address Proof. (Ration card, Passport, Aadhar Card, Voter ID card, Driving license, Bank Passbook-not more than 6 months old, verified copies of -Electricity bill of not more than 6 months old, residence telephone bills of not more than 6 months old, registered lease or sale agreement, self declaration by High Court or Supreme Court judges, ID card with address of Central/State Govt Employees, Statutory/Regulatory Authorities, Public Sector Undertakings, Schedules commercial banks, public financial institutions, colleges affiliated to universities, professional bodies such as ICWAI, ICAI, Bar Council etc. to their members).
  • You can open this account even without having a single insurance policy too. But after buying you need to give request for demat format.
  • Once you submit all documents for opening E-Insurance Account your account will be opened within 7 days and you also receive the welcome kit which makes you familiar in dealing with this account.
  • Once you have E-Insurance Account during future buying you just need to mention your unique E-Insurance Account number into proposal form so that your new insurance company issue it ineIA format.
  • Authorized representiave of your eIA account will have only access to your account but not the policy benefit. But both nominee and authorized representative is same then he/she can get the policy benefits.
  • You can change authorized representative at any point of time.
  • You have the option to stay away from eIA account also. In such case your policy documents will be as is now in physical format.

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