Insurance Repository and E-Issuance of Policies

8/12/2019 Insurance Repository and E-Issuance of Policies

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INSURANCEREGULATORYANDDEVELOPMENTAUTHORITY

IRDA/ADMN/GDL/GLD/080/04/2011 29th

April,2011

GuidelinesonInsurancerepositoriesandelectronicissuanceofinsurancepolicies

1. ObjectiveandUtilizationofInsuranceRepositoryTheobjectiveofcreatingan insurancerepository istoprovidepolicyholdersafacilitytokeep insurance

policies inelectronicformandtoundertakechanges,modificationsandrevisions inthe insurancepolicy

with speed and accuracy in order to bring about efficiency, transparency and cost reduction in the

issuanceandmaintenanceofinsurancepolicies.

2. Definitions Intheseguidelines,unlessthecontextotherwiserequires,(a) ActmeanstheInsuranceRegulatoryandDevelopmentAuthorityAct1999(41of1999);(b) approvedpersonmeansanentityappointedbyaninsurancerepositoryasitsagenttoperformcertainassignedtasksinrelationtoandincidentaltothefunctionsofinsurancerepository.

(c) Authoritymeans the InsuranceRegulatoryandDevelopmentAuthorityestablishedundersubsection(1)ofSection3oftheAct;

(d) eInsuranceAccountistheportfolioofinsurancepoliciesofapolicyholderheldinanelectronicform

with

an

insurance

repository.

(e) eInsurancepolicymeansapolicydocumentwhich isanevidenceofinsurancecontract issuedinanelectronicformthroughanInsurancerepository.

(f) InsuranceRepositorymeansacompanyformedandregisteredundertheCompaniesAct,1956(1of1956)andwhichhasbeengranteda certificateof registrationunder theseGuidelinesby

InsuranceRegulatoryandDevelopmentAuthority formaintainingadataof insurancepolicies in

electronic form on behalf of insurers including the history of transactions during the term of

policy.

(g) WordsandexpressionsusedandnotdefinedintheseGuidelinesbutdefinedintheInsuranceAct,1938 (4of1938)ortheLife InsuranceCorporationAct,1956ortheGeneral InsuranceBusiness

NationalizationAct,1972 (57of1972)or InsuranceRegulatoryandDevelopmentAuthorityAct,


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7. Furnishingofinformation,clarificationandpersonalrepresentation:(1)TheAuthoritymayrequiretheapplicanttofurnishsuchfurther informationorclarificationregarding

mattersrelevanttotheactivityoftheinsurancerepositoryforconsiderationoftheapplication.

(2) The applicant shall, if so required, appear before the Authority for personal representation, in

connectionwiththegrantofcertificateofregistration.

8. Considerationofapplicationforgrantofcertificateofregistration(1) Every application receivedby theAuthoritypursuant to theseGuidelines shallbe consideredby it

withinareasonabletimeanditsdecisionthereoncommunicatedtotheapplicant.

9. InPrincipleapproval(1)

On

considering

the

application

under

Clause

6,

with

reference

to

the

eligibility

norms

specified

in

Clause 4, the Authority shall accord an inprinciple approval for acting as insurance repository. On

receiving inprinciple approval the insurance repository shall put in place the following and submit a

writtenaffidavitinsupportofthesamethat;

(a) theautomaticdataprocessingsystemsofthe insurancerepositoryhavebeenprotectedagainstunauthorisedaccess,alteration,destruction,disclosureordisseminationofrecordsanddata;

(b) the network throughwhich electronicmeans of communications are established amongst theinsurance repository, its approved persons, insurers and policyholders is secure against

unauthorizedentry

or

access;

(c) theinsurancerepositoryhasestablishedstandardtransmissionandencryptionformatsandnonrepudiationsafeguardsforelectroniccommunicationsofdataamongsttheinsurancerepository,

itsapprovedpersons,insurersandpolicyholders;

(d) thephysicalorelectronicaccess to thepremises, facilities,automaticdataprocessing systems,data storage sitesand facilities includingbackup sitesand facilities and to theelectronicdata

communicationnetworkconnectingthe insurancerepository, itsapprovedpersons, insurersand

policyholdersiscontrolled,monitoredandrecorded;

(e) theinsurancerepositoryhasadetailedoperationsmanualexplainingallaspectsofitsfunctioning,including the interface and method of transmission of information amongst the insurance

repository,itsapprovedpersons,insurersandpolicyholders;


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(f) the insurance repository has established adequate procedures and facilities to ensure that itsrecords are protected against loss or destruction and arrangements have been made for

maintainingbackupfacilitiesatalocationdifferentfromtheexistingplace;

(g) the insurancerepositoryhasmadeadequatearrangements including insurancefor indemnifyingthepolicyholdersandinsurersforanylossthatmaybecausedbythewrongfulact,negligenceor

defaultof the insurancerepositoryor itsapprovedpersonorofanyemployeeofthe insurance

repositoryoritsapprovedpersons;

(h) theproceduresare inplacetomaintainelectronicmeansofcommunicationwithall its insurers,itsapprovedpersons,policyholdersandwithotherinsurancerepositories.

(i) anyaccessbyaninsurertoeinsuranceaccountofapolicyholdershallshowthelistofonlythoseindividualinsurancepoliciesthatwereissuedbyit.

(j)it

has

a

mechanism

in

place

to

ensure

that

the

interests

of

the

persons

buying

insurance

policies

heldintheinsurancerepositoryareadequatelyprotected.

10.Grantofcertificateofregistration(1)Afterconsidering theapplicationunderClause6,with reference to theeligibilitynormsspecified in

Clause4andaffidavitfiledunderClause9,theAuthorityifitissatisfiedthatthecompanyiseligibletoact

asan insurance repository,maygrant itacertificateof registration inForm InsuranceRepository 2

subjecttothefollowing,namely:

(a) the insurance repository shall pay the registration fee of Rs 50,000 drawn in favour of IRDA,HyderabadwithinfifteendaysofreceiptofintimationfromtheAuthority.

(b) the insurance repository shall complywith theprovisionsof the InsuranceAct,1938, the IRDAAct,1999,theRegulationsmadethereunder,guidelinesandcircularsissuedbyIRDAfromtimeto

time;

(c) the insurance repository shall carry on insurance activity as given in themain objects of thecompany.

11.PhysicalverificationTheAuthorityshall,beforegrantingacertificateof registrationunder theseGuidelinesmakeaphysical

verificationoftheinfrastructurefacilitiesandsystemsestablishedbytheinsurancerepositoryorthoseof

itssponsorsasstatedatClause9above.


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12.Procedurewherecertificateofregistrationisnotgranted(1)Where an application for the grantof certificateof registrationdoesnot satisfy the requirements

specifiedinClause6,theAuthorityshallrejecttheapplicationaftergivingtheapplicantanopportunityof

beingheard.

(2) The decision of the Authority to reject the application shall be communicated to the applicant in

writingwithinthirtydaysofsuchdecision,statingthereinthegroundsonwhichtheapplicationhasbeen

rejected.

13.Internal

monitoring,

review

and

evaluation

of

systems

and

controls

(1)Aninsurancerepositorygrantedcertificationofregistrationshallensure:

(a) adequate internalmechanisms for reviewing,monitoring and evaluating its controls, systems,proceduresandsafeguards.

(b) thattheintegrityoftheautomaticdataprocessingsystemsismaintainedatalltimesandtakeallprecautionsnecessary toensure that therecordsarenot lost,destroyedortamperedwithand

ensurethatsufficientbackupofrecordsisavailableatalltimesatadifferentplace.

14.Reviewofoperationsoftheinsurancerepository(1)Areviewofthecontrols,systems,proceduresandsafeguardsputinplacebytheinsurancerepository

stated inClause15,shallbecarriedout,atleastonceayear,byanexternalaudit firmapprovedbythe

Authority.Thefeesoftheexternalauditfirmshallbebornebytheinsurancerepository.

(2)ThereportoftheexternalauditfirmshallbesubmittedtotheAuthorityandsharedwiththeinsurers

within15daysofconclusionoftheaudit.

(3)Where any insurer finds inadequacies in respect of the above, the same shall be notified to the

Authorityimmediately.

15.FitandProperCriteria(1)TheChiefExecutiveOfficerof the insurance repositoryshallbeappointed/ reappointedwithprior

approvaloftheAuthority.Providedthat incaseofanexistingcompanywherethe insurancerepository


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activityisconductedthroughtheSBU(StrategicBusinessUnit)orseparate lineofbusiness,theheadof

suchunitshallbeappointed/reappointedwiththepriorapprovaloftheAuthority.

(2)TheAuthoritymaydirecttheInsuranceRepositorytoinductaDirectorintoitsboard.

Provided,theAuthoritymaygiveanopportunityofbeingheardbeforegivingsuchdirections.

(3)Where in the interest of policyholders or insurance business, the Authority, considers necessary

directinganyofitssenioremployees,directorsorCEOtovacatetheiroffice,itmaydoso,whichshallbe

bindingontheinsurancerepository.

(4) TheChiefExecutiveOfficershallnotbe:i. apersonofunsoundmind;ii. anundischargedinsolvent;iii. apersonwhohadbeensubjectedtoatermofimprisonmentforaperiodofthreemonths

by

a

court

of

competent

jurisdiction

on

grounds

of

misconduct,

misfeasance,

forgery

etc.

(5)TheChiefExecutiveOfficershallpossessadegree inartsorscienceorcommerceormanagementor

anyotherdegreespecifiedbytheAuthority.

(6)TheChiefExecutiveOfficershallalsopossesexperienceintheareaofITorinsurance.

(7)IncaseofanexistingcompanywheretheinsurancerepositoryactivityisconductedthroughtheSBU

(StrategicBusinessUnit)orseparate lineofbusiness,theconditionsstipulatedaboveshallbeapplicable

totheheadofsuchunit.

16.Appointmentofcomplianceofficer(1) AninsurancerepositoryshallappointacomplianceofficerwhoshallberesponsibleformonitoringthecomplianceoftheAct,Regulations,guidelines,circulars instructions,etc., issuedbytheAuthorityor

theCentralGovernmentandforredressalofpolicyholdersgrievances.

(2) ThecomplianceofficershallimmediatelyandindependentlyreporttotheBoardanynoncomplianceobservedbyhim.

17.MaintenanceofRecordsbyInsuranceRepositories(1) Every insurance repository shallmaintain the following electronic records and documents, insurer

wise,namely:

(a) Recordsofeinsuranceaccountswithanuniquenumber;


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(b) records of e insurance policies issued and recordsof e insurancepolicies converted back intophysicalform;

(c) thedateofassignmentininsurancepoliciesissuedinelectronicform;(d) a register and an index of policyholders and their nominees / assignees / beneficiaries in therespectivelifeinsurancepolicies;

(e) recordofinstructionsreceivedfromandsenttopolicyholdersandinsurers;(f) Historyofclaimdata;(g) suchother recordsasmaybe specifiedby theAuthority from time to time forcarryingon theactivitiesasaninsurancerepository.

(2)Every insurancerepositoryshall intimatetheAuthoritytheplacewheretherecords,documentsand

theirbackupfacilitiesaremaintained.

(3)

Subject

to

the

provisions

of

any

other

law,

the

insurance

repository

shall

preserve

records

and

documents foraminimumperiodoftenyearsfromthedateofterminationorassignmentof insurance

policiesfromitsrecords.

18.SystemstomaintainprivacyofdataTheinsurancerepositorybeforecommencingtheoperationsshallputinplacemeasurestosafeguardthe

privacy of the data maintained and adequate systems to prevent manipulation of records and

transactions.

19.InsurancePolicieseligibletoholdinelectronicform(1)Thefollowingclassesofinsurancepoliciesareeligibletobeheldintheelectronicform;

(a) AllindividuallifeinsurancepoliciesincludinghealthandpensionpoliciesincludingthoseissuedtogroupsissuedbyregisteredlifeinsurancecompanieswithIRDA

(b) Allgeneralinsurancepoliciesheldbyindividualsincludinggroupspolicies(c) Anyotherclassof insurancepolicies thatmaybenotifiedby IRDAundertheseGuidelines fromtimetotime

20.NormsforopeningofeInsuranceAccount:(1)Inordertoholdeinsurancepoliciesaseparateanddistincteinsuranceaccountshallbeopenedwith

insurancerepositoriesforkeepinginsurancepoliciesinelectronicform.


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VI. BankPassbook(notmorethan6monthsold)VII.Verifiedcopiesofa) Electricitybills(notmorethan6monthsold),b) ResidenceTelephonebills(notmorethan6monthsold)andc) RegisteredLeaseandLicenseagreement/Agreementforsale.

VIII.SelfdeclarationbyHighCourtandSupremeCourtjudges,givingthenewaddressinrespectoftheirownaccounts.

IX. Identitycard/documentwithaddress,issuedbya) Central/StateGovernmentanditsDepartments,b) Statutory/RegulatoryAuthorities,c) PublicSectorUndertakings,d)

Scheduled

Commercial

Banks,

e) PublicFinancialInstitutions,f) Collegesaffiliatedtouniversities;andg) ProfessionalBodiessuchasICAI,ICWAI,BarCounciletc.totheirMembers.

(e) Aninsurancerepositoryshallensurethatalldocumentspertainingtoproofofidentityandproofof address are collected from all the policyholders before opening eInsurance Account.

SubmissionoftheaforesaiddocumentsistheminimumrequirementforopeninganeInsurance

Account.InsuranceRepositoriesshallverifythecopyoftheAddressProofwiththeoriginalbefore

acceptingthe

same

as

valid.

While

opening

an

eInsurance

Account,

an

insurance

repository

shall

exercise due diligencewhile establishing the identity of the person to ensure the safety and

integrityoftheinsurancerepositorysystem.

(2)WhereaneInsuranceAccount isopenedthroughan Insurer, itshallbedoneonlyontherequestof

thepolicyholder:

(a) AninsurancerepositoryshallopenaneInsuranceAccountontherequestofthepolicyholderandrecommendationsofan insurerwhoobtainsthedesiredKYCdocuments inrespectthereof.The

copy of the ID proof and address proof shall nevertheless be documented by the insurance

repositoryasaforesaid.

(b) OpeningupofaneInsuranceAccountforitspolicyholderwithaparticularInsuranceRepositoryshallbetheprerogativeofthepolicyholder.


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(c) Every proposal for e insurance policy or an application for eInsurance Account will carry adeclaration I would like to receive my insurancepolicy and all the information related to theproposed insurancepolicythrough insurancerepository inEnglishand/orthe local languagetobesignedbytheeinsuranceaccountholder.

(3)NoKYCneedbecarriedout inrespectof Idproofandaddressproofforthesame individualfor

thepurposeofissuinganewinsurancepolicywhereeInsuranceAccountisinexistence.

(4)KYCforchangeofaddressinrespectofeInsuranceAccount

(a) A policyholder can inform either the insurer or the insurance repository about the change ofaddressandthesameshallbeapplicabletoallpoliciesissuedtothatparticularpolicyholder.

(b)WhileeffectingachangeofaddressattherequestofapolicyholderaninsurancerepositoryshalldocumenttheKYCrequirementsstatedatClause20andshallcarryouttherequiredduediligence

detailed

therein.

i. The changeofaddressaffected to theeInsuranceAccount shallbemadeapplicable toallinsurancepoliciesheldinrespectofthatparticulareInsuranceAccount.

ii. Theinsurancerepositoryuponeffectingthechangeofaddressshallinformthesame,within3workingdays,totherespectiveinsurancecompaniesforupdatingitsrecord.

iii. The insurance repository shall inform the policyholder and insurer about the change inaddresswithin3workingdaysofreceiptofrequest.

(c) In case the address in theeinsurance account isdifferent from theaddressmentioned in thepolicy

application

form,

the

insurer

shall

initiate

achange

in

the

address

in

the

einsurance

accountbycarryingouttheKYCaspertheaforesaidnorms.

(5)Communicationtothepolicyholder

(a) Particulars of eInsurance Account andmodus operandi of its operation, the login ID and thepasswordshallbeforwardedinhardcopy.

(b) Thepolicyholdershallbe informedtoquotetheuniqueeIAaccountnumber inallproposalsforinsurance.

(c) Thestatementofaccountgivingthedetailsofallpoliciesheldwheneveradditional insurance istaken or a policymatures/ surrendered/ lapses shall be provided to the einsurance account

holder.


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(d) Ifany lossoccurs to thepolicyholderdue to thedefaultbyeither the insureror the insurancerepository, the same shallbeborneby the insurers.However the insurance repository shallbe

liabletocompensatetheinsurerforanylossattributabletothem.

(6)AuthorisedRepresentativeofeInsuranceAccount(eIA)

(a) A repository shall require a policyholder who is opening an eIA to appoint an Authorised

Representativewhoshallbeentitledtoaccesstheaccount intheeventofhisdemise.Thepolicyholder

shallbe informedthatAuthorisedRepresentativeappointedwouldbeentitledtoaccesstheaccount in

the eventof demise of the policyholder or in his incapacity to operate the e InsuranceAccount. The

policyholdershallbeadvisedthatintheeventoftheAuthorisedRepresentativeappointedpredeceasing

the policyholder, the policyholder shall appoint another Authorised Representative in the place of

deceased

Authorised

Representative.

The

policyholder

shall

also

be

informed

that

he/she

will

have

right

to change theAuthorisedRepresentativeduring the termofe InsuranceAccount.The repository shall

inform the policyholder that the Authorised Representative appointed by him/her is entitled only to

access the e Insurance Account to know the portfolio of insurance policies and the nominee of the

respective life/ insurancepoliciesofthee InsuranceAccountareentitledtotheunderlyingbenefits in

accordancetotheextant legalprovisions. Attheoptionofthepolicyholder,therepositorymay inform

theAuthorisedRepresentativeabouthis/herappointmentasanAuthorisedRepresentativeoftheeIA.

(i) the incapacity referredherein is the incapacitydue tomentallyunsoundmeansor terminally ill as

certifiedby

amedical

practitioner.

(ii)where anAuthorisedRepresentative seeks tooperate the eIAon the groundsof incapacityof the

policyholder when the policyholder is alive, the repository shall carry out the due diligence either

independentlyor throughanyof theparticipating insurersof thatparticulareIAbefore submitting the

enablinginformationtotheAuthorisedRepresentative.

(iii)whereanAuthorisedRepresentativeseeks tooperate theeIAon thedemiseofapolicyholder, the

repositoryshall informtheenabling informationtotheAuthorisedRepresentativewithin1workingday

afterobtainingtheproofofdeathofthepolicyholder.Wherearepositoryreservestherighttoexamine

theveracityofthedocumentaryevidencesubmittedbytheAuthorisedRepresentative,thesameshallbe

completed within 7 working days before that the Authorised Representative shall be forwarded an

acknowledgementofthereceiptoftheinformationregardingthesame.


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eIA. An insurer, at its option,may delegate certain pre determined policy services subject to these

Guidelines.

(5)Aninsurancerepositoryshallacknowledgealltheservicingrequestsreceivedfromthepolicyholder.

(6) Policy Services that are delegated by an insurance company shall be effectively rendered by the

insurance repositorywithin the specified time line. Acommunication shallbesent to thepolicyholder

soonafterthepolicyservice.

(7)Inrespectofpolicyservicesthataretobedischargedbyinsurancecompany,theinsurancerepository

shalltransfertherequeststotherespectiveinsurersonarealtimebasis.

(8)Whereapolicyservicewarrantsachange intheparticularsofeIA, likechangeofaddress,changeof

name etc. the insurance repository shall inform all the respective insurers, with reference to the

respectivepolicynumbers,whichareparticipatinginthatparticulareIA.

(9)

Every

insurance

repository

shall

submit

a

statement

of

insurance

policies

held

in

the

electronic

form

to

everypolicyholder tohisaddressat leastonce inayear.The statement atminimum shall contain the

insurancepolicynumber, the type /natureof insurancepolicy and the insurerbywhom thepolicy is

issued. The same shall be forwarded at least once in a year to the postal address submitted by the

policyholder.

(10)Theinsurancerepositoryshallprovidealinktothedetailedtermsandconditionsthepolicycontract

inrespectofinsurancepolicyholdingsofeInsuranceAccount.

25.InsuranceRepositoriestoindemnifylossincertaincases(1)Withoutprejudicetotheprovisionsofanyotherlawforthetimebeinginforce,anylosscausedtothe

policyholdersdue to thenegligenceof the insurance repositoryor its approvedperson, the insurance

repositoryshallindemnifysuchpolicyholder

(2) Every insurance repository shall take out and maintain and continue to maintain a professional

indemnity insurance cover for an adequate amount throughout the validity period of Certificate of

Registration.

(3)Theinsurancecovershallindemnifyaninsurance repositoryagainst

(a) anyerror,omissionandnegligenceonitspartoronthepartofitsapprovedpersonsand/ortheirrespectiveemployeesanddirectors;

(b) any loss caused to a policyholder for which the insurance repository is responsible inconsequenceofanyfinancialorfraudulentactoromission;


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(c) any loss caused to a policyholder or to a an insurer as a consequence of breakdown ofsystems.

26.GrievancesRedressalCellofInsuranceRepositories(1) An Insurance Repository shall have in place a policyholders grievances cell for resolution of the

policyholdersgrievancesrelatedtoinsurancerepositoryservices.Thepolicyholdersgrievancescellofthe

insurance repository shall address the grievances of policyholders in accordancewith the time frame

specifiedbyAuthorityfromtimetotime.

(2)Thegrievances registeredwith the insurance repositories shallbemanaged through the Integrated

GrievanceManagementSystemoftheAuthorityforenablingsharingofgrievancesthatgetregisteredby

theinsurancerepositoryfortherespectiveinsurers.

27.Insurance Repositories to return the electronic insurance policy data under certaincircumstances

(1)Where an insurance repository surrenders its registration eitheron itsownor by anorderof the

Authority,orwhere theAuthority suspends the registrationof the insurance repository in accordance

with theprovisionsof theseGuidelines,the insurancerepositoryuponsuchsurrenderorsuspensionas

thecasemaybeshallhandovertheentiredataofinsurancepolicyrecordsanotherinsurancerepository

appointedbytheAuthorityeitherbymeansofelectronicmodeorbydeliveryoffloppiesordiscs.Nocopy

ofthe

data

or

replication

of

the

records

shall

be

maintained

by

the

insurance

repository

thereafter.

(2) In discharge of the obligation laid here above, an insurance repository shall obtain a discharge

summaryfromtherespectiveinsurerinsupportofhavinghandedovertheinsurancepolicydatatosuch

insurancerepositoryappointedbytheAuthority.

(3)WherebyorderofAuthorityorotherwise,an insurancerepository,handsover the insurancepolicy

data,theappointedinsurancerepositoryshallcarryoutorcausetheauditintotheelectronicdataofthe

transferor insurancerepositoryandshallcompletelysatisfythe fullandcompletehandoverof thedata

beforesubmittingthedischargesummarytothatinsurancerepository.

28.ObligationsofInsurers


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(1) Every Insurer shallmention in the policy records and claim recordsmaintained in accordance to

Section14oftheAct,theformofthepolicydocumentandthenameofthe insurancerepositorywho is

keepingthesame.

(2)InordertocomplywiththeprovisionsofSection(14)ofInsuranceAct,1938,thepoliciesmaintained

in the data of insurance repository shall simultaneously form part of the record of policies / claims

maintainedbyinsurers.

(3)Everyinsurershall,atleast,onceinaquartershallreconcilethedataofinsurancepoliciesheldbythe

insurancerepositorywiththosemaintainedinitspolicyrecords.

(4)TheInsurermaydelegatecertainpolicyservicestotheinsurancerepositoryandwheredelegatedshall

forwardtheframeworkofthepolicyservicesincludingthespecifictimelines,totheinsurancerepositories

foreffectivepolicyservicing.

(5)

In

respect

of

policy

services

that

are

not

permitted

to

be

delegated,

the

insurers

shall

on

affecting

the

policyserviceshallinformtheinsurancerepositorytocarryoutthechangesorforupdatingtherecords,if

any.

(6)Itshallbethedutyoftheinsurertoupdateinformationintheinsurancerepositorywithinreasonable

timeforthetransactionprocessedbythem.

(8)TheInsurershallforwardthetermsandconditionsthatformpartofaninsuranceproductandpolicy

totheinsurancerepositoryforuploadingthesameinitsportal.

29.IssuanceofelectronicInsurancePolicies

(1)Attheoptionofapolicyholder,eitheraspartofproposalformorthroughonlinerequest,aninsurance

companyshallissuetheinsurancepoliciesintheelectronicform.

(a)WhereaproposalissubmittedforaneInsurancepolicy;

i. The insurer shall expeditiously process the same in accordance to its underwriting policy and incompliancewithregulationsandguidelinesoftheAuthority.

ii. Thecontentsofthepolicycontractsshallbeforwardedtotheconcernedinsurancerepositorywithin2workingdaysfromthedateofacceptanceoftherisk.

iii. Soonaftertheacceptanceoftherisk,thepolicyholdershallbecommunicatedaboutthestatusoftheproposal / policy and that the policy would be updated in the relevant portal of the insurance

repositorywithintwoworkingdays.


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iv. The policyholder shall also be informed that for all contractual obligations with regard to theunderlying insurancepolicy thesaidcommunication isconclusiveproof in supportof the insurance

contract and that the uploading requirement of insurance policy in electronic form is only a

proceduralformality.

v. Onreceiptofthepolicycontents in theelectronic form from the insurancecompanythe insurancerepositoryshalluploadthesamewithin2workingdays.

vi. Immediatelyafteruploadingthee InsurancePolicy,the insurancerepositoryshallcommunicatethepolicyholderaboutthesame.

vii.While forwarding thecommunication, thepolicyholdershallbe informedofoption toexercise freelookwithin 15 days in accordance to Regulation 6 of IRDA (Protectionof Policyholders Interests)

Regulations,2002forlifeinsurancepoliciesandforgeneralinsurancepolicies,ifapplicable.

(b)

Conversion

of

existing

policies

into

electronic

form

i. Where any person who voluntarily consents to avail the services of insurance repositories asmentioned above shall submit a request letter and all necessary documentswhich the insurance

companymayseekincludingAadhaarletter/PANcarddetails.

ii. The insurer,onreceiptoftherequestfromthepolicyholderasreferredaboveshallsubstitute in itspolicyrecordsthenameoftheinsurancerepositoryasakeeperinrespectofthatinsurancepolicyin

theelectronicform.

iii. Within 3working days, the insurer shall forward the application form alongwith other requireddocuments

for

opening

an

eInsurance

Account

to

the

concerned

insurance

repository.

iv. Aninsurancerepositoryshall,onreceiptoftheaboveprocessthesameandshallopenaneInsuranceAccountwithin7workingdaysandshallcommunicatethesametotheInsurer.Wherean insurance

repositorycannotopenaneinsuranceaccountforwantofanyadditionalinformation/document,it

shall communicate the same to the insurerwithin 5workingdays from thedateof receiptof the

applicationform.

v. Whereaninsurancerepositoryopensaneinsuranceaccountinaccordancetotheabove,shallinformthefactofthesametotheinsurerwithin2workingdaysfromthedateofopeningthesame.

vi. Insurersoonafterreceiptof informationofopeningofeIAshall,within2workingdays forwardthecontentsofinsurancepolicydocumenttotheinsurancerepository.

vii.Within2workingdays from thedateof receiptof theabove information, the insurance repositoryshallregisterthesameinitsrecordandcommunicatetothepolicyholder.


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(2) Insurance companies shall send thehard copyof insurance information sheet containing thebasic

detailsofinsurancepolicytotheaddressstatedthereintothepolicyholder.

(3)InsuranceRepositoriesshallalsocommunicatetheparticularsofinsurancecontractthatisuploadedto

theireinsuranceaccountbyemail.

(4)Bytakingpriorconsentofthepolicyholder,the insurancerepositoriesmayvoluntarilysendmessages

bySMS.

(5)InsurersshallspecifytheproceduresavailableforconvertingtheeInsurancePoliciesintothephysical

policydocumentsandtheapplicablecharges,ifany.

30.InterInsuranceRepositoryTransfers:(1)Incaseofinterinsurancerepositorytransfersofinsurancepoliciesthesameshallbeaffectedthrough

the

respective

insurers

at

the

option

of

policyholder.

(2)On issuance of notice by an insurance company an insurance repository shall transfer thedata of

respective insurancepoliciesand the transactionhistorydataof thatparticularpolicy to the insurance

companywithinoneworkingday.

(3)Onreceiptofthedatathe insurershallforwardthesametotheotherinsurancerepositorytowhom

thesameisdesiredtobetransferredwithinoneworkingday.

(4)However,inordertoreducetheoverheadcosts,insurersshallminimizetheneedforopeningupofe

InsuranceAccountwithmorethanoneinsurancerepository,ifaneIAisalreadyinexistence.

31.AssignmentofLifeInsurancePoliciesheldinaninsurancerepository:(1)Subject to theprovisionsof insurance act and suchRegulations, guidelines asmaybemade in this

behalf from time to time, a policyholdermay assign a policy of life insurance through an insurance

repository.

(2)AnInsureronreceiptof intimationofAssignmentfromthepolicyholdershallregisterthesame in its

recordandintimate ittotheinsurancerepositoryandsuchinsurancerepositoryshallthereuponmakea

noteofsuchassignmentinitsrecordsaccordingly.

(3)Anyentry in the recordsofa repositoryunderGuidelines (2)above shallbeanevidenceof factof

assignment.

(4)Where an assignment is the conditional assignment the insurance policy shall be allowed to be

operatedasdirectedbytheinsurer.


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(5)Incaseofanyabsoluteassignment,attheoptionofanassignee,aninsurermayissueaphysicalpolicy

documentortransferthepolicytotheelectronicinsuranceaccountoftheassigneesubjecttosuchterms

andconditionsandapplicablechargesasthecasemaybe.

(6) In order to complywith the requirements of the provisions of Insurance Act the policyholder the

insurance repositories shallput inplaceprocedures forobtaining theeendorsementbyapolicyholder

beforeregisteringtheassignment.

32.PaymentofpolicybenefitsThe Insurershallremain liable forsettlementofpolicybenefits inrespectoftheunderlyinge Insurance

policies.However,onreceiptoftherequireddocuments,theinsurermaydelegatethepaymentofpolicy

benefitstotheinsurancerepositories.

33.ElectronicfacilityInsuranceRepositories/Insurersshallmandatorilyuse electronicfacilityforpaymentofcashbenefitsto

the policyholders wherever the system is available. If electronic facility is not available, insurance

repositories/Insurersmayusecrossedchequesforthispurpose.Inordertoavoidfraudulentencashment

of cash benefits, all repositories / Insurers shall print the bank account details, furnished by the

policyholders,onthepaymentinstruments

34.Rightsofapolicyholdertooptoutofinsurancerepositoryinrespectofanyinsurancepolicy(1)Ifapolicyholderseekstooptoutofaninsurancerepositoryinrespectofanyinsurancepolicyheshall

informtherespectiveinsureraccordinglywhointurnshallintimatethesametotheinsurancerepository.

(2) The insurance repository on receipt of the above intimation shallmake necessary changes in its

recordsandshallinformtheinsurer.

(3)Every insurer shall,within5daysof the receiptof intimation from the insurance repositoryandon

fulfillmentofsuchconditionsandonpaymentofsuch feesasagreed, issuethehardcopyofthepolicy

documenttothepolicyholder.

Everyabsoluteassigneeregisteredbytheinsurerandrecordedbytheinsurancerepositoryshallhavethe

samerightsasthatofapolicyholderforthispurpose.

35.PowersofAuthoritytocallforinformation,carryoutinspectionandenquiry


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36.PowerofAuthoritytoappointanauditor(1)TheAuthorityshallhavethepowertoappointanauditorto inspector investigate, intothebooksof

accounts, records, documents, infrastructures, systems and procedures or affairs of a insurance

repositoryoritsapprovedperson:

Provided that the auditor so appointed shallhave the samepowersof the inspectingor investigating

officer, and the obligation of the insurance repository or its approved person and their respective

directors, officers and employees, as the case may be, shall be applicable to the inspection or

investigationundertheseGuidelines.

37.Authoritytorecovertheexpenses(1)

The

Authority

shall

be

entitled

to

recover

from

the

insurance

repository,

such

expenses

including

fees

paidtotheauditorsasmaybeincurredbyitforthepurposesofinspectingorinvestigatingthebooksof

accounts,records,documents,infrastructures,systemsandproceduresoftheinsurancerepositoryorits

approvedpersonasthecasemaybe.

38.PowerofAuthoritytogivedirectionsincertaincases(1) If aftermakingor causing tobemadeanenquiryor inspection, theAuthority is satisfied that it is

necessary

(i)in

the

interest

of

policyholders,

or

orderly

development

of

insurance

business;

or

(ii) to prevent the affairs of any repository or its approved person being conducted in the manner

detrimentaltotheinterestsofpolicyholdersorinsurancebusiness,itmayissuesuchdirections;

(a) toanyrepositoryordirecttherepositorytodirectitsapprovedperson,asmaybeappropriateintheinterestofpolicyholdersortheinsurancebusiness.

(b) Thedirectionsissuedinthisregardshallbebindingoninsurancerepositories.

39.Penaltyforfailuretofurnishinformation,return,etc.(1)Any insurance repository,who is requiredunder theseGuidelinesoranyguidelines,circulars issued

thereunder,


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(a) to furnishany information,document,books, returnsor report to theAuthority, fails to furnish the

same,itshallbeliabletoapenaltyuptoonelakhrupeesforeachdayduringwhichsuchfailurecontinues

oronecrorerupees,whicheverislessforeachsuchfailure;

(b)tofileanyreturnorfurnishanyinformation,booksorotherdocumentswithinthetimespecifiedthere

for,failstofilereturnorfurnishthesamewithinthetimespecifiedtherefor,itshallbeliabletoapenalty

uptoonelakhrupeesforeachdayduringwhichsuchfailurecontinuesoronecrorerupees,whicheveris

less;

(c)tomaintainbooksofaccountorrecords,failstomaintainthesame,itshallbeliabletoapenaltyupto

onelakhrupeesforeachdayduringwhichsuchfailurecontinuesoronecrorerupees,whicheverisless.

40.Penaltyforfailuretoenterintoanagreement(1)

If

an

insurance

repository

is

required

to

enter

into

an

agreement

with

the

insurer

or

renew

such

agreement, fails toenter intoor renew suchagreement, such insurance repository shallbe liable to a

penalty upto one lakh rupees for each day duringwhich such failure continues or one crore rupees,

whicheverislessforeverysuchfailure.

Provided ifthedelay inexecutingtheagreement isattributabletoan insurer, insurancerepositoryshall

notbeliableforpenalty.NoInsurershalldelaytheexecutionofagreement.

(2)TheInsurancerepositoryshallreportallsuchdelayedcasesimmediatelytotheAuthority.

41.Penaltyforfailuretoredresspolicyholders'grievances(1)IfaninsurancerepositoryafterhavingbeencalleduponbytheAuthority,toredressthegrievancesof

thepolicyholders,failstoredresssuchgrievancespertainingtotheoperationsoftheinsurancerepository

withinthetimespecifiedbytheAuthority,suchinsurancerepositoryoritsapprovedpersonshallbeliable

toapenaltyuptoonelakhrupeesforeachdayduringwhichsuchfailurecontinuesoronecrorerupees,

whicheverisless.

42.Penaltyfordelayinissueofelectronicissuanceofinsurancepolicies(1) Ifan insurancerepository failsto issuethe insurancepolicies intheelectronic form,withinthetime

specifiedundertheseGuidelinesorbyanyguideline,circularissuedthereunderorabetsindelayingthe

processof issuanceofhardcopyofpolicydocumentonoptingoutofarepositoryof insurancepolicies,


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suchinsurancerepositoryshallbeliabletoapenaltyuptoonelakhrupeesforeachdayduringwhichsuch

failurecontinuesoronecrorerupees,whicheverisless.

43.Penaltyforfailuretoreconcilerecords(1)Ifaninsurancerepositoryfailstoreconciletherecordsofelectronicinsurancepolicieswithinsurance

policiesnotifiedbytheinsurerasrequiredintheseGuidelines,suchinsurancerepositoryandinsurershall

beliabletoapenaltyuptoonelakhrupeesforeachdayduringwhichsuchfailurecontinuesoronecrore

rupees,whicheverisless.

44.PenaltyforfailuretocomplywithdirectionsissuedbyAuthorityundertheseGuidelines(1)

If

an

insurance

repository

or

its

approved

person

or

an

insurer

fails

to

comply

with

the

directions

issuedbytheAuthority,withinthetimespecified,heshallbeliabletoapenaltyuptoonelakhrupeesfor

eachdayduringwhichsuchfailurecontinuesoronecrorerupees,whicheverisless.

45.CancellationorsuspensionofCertificateofRegistrationTheCertificateofRegistrationoftheinsurancerepositorymaybecancelledorsuspendedafterduenotice

and after giving the insurance repository a reasonable opportunity of being heard if the insurance

repository:

(a) violates the provisions of the Insurance Act,1938 (4 of 1938), Insurance Regulatory AndDevelopmentAuthorityAct,1999 (41of1999)or rulesorRegulations,guidelines,circulars,

directions,etc.madethereunder;

(b) failstofurnishanyinformationrelatingtoits activitiesundertheseGuidelines;(c) furnisheswrong or false information; or conceals or fails to disclosematerial facts in theapplicationsubmittedforobtainingaCertificationofRegistration;

(d) doesnotcooperatewithanyinspectionorenquiryconductedbytheAuthority;(e) failstoresolvethecomplaintsofthepolicyholdersorfailstogiveasatisfactoryreplytotheAuthorityinthisbehalf;

(f) doesnotcarryoutitsobligationsasspecifiedintheGuidelines;(g) theinsurancerepository staff solicits insurancebusiness


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46.ReportstotheAuthority(1)TheinsurancerepositoryshallsubmitperiodicalreportstotheAuthorityasspecifiedhereunder

a.TheinsurancerepositoryshallfurnishtotheinsurancecompanyandtheAuthorityanannualreportandanyotherreturn,asmaybe,requiredbytheAuthorityonitsactivities.

b.The Annual Report, duly certified by the directors of insurance repository and the Chief ExecutiveOfficershallbesubmittedwithinaperiodofsixtydaysof theendof its financialyearorwithinsuch

extendedtimeastheAuthoritymaygrant.

c.The insurancerepositoryshallsubmittotheAuthority information,statisticsandotherMISreports intheformsastheAuthoritymayspecifyfromtimetotime.

47Costsofe InsuranceAccount

(1)

No

costs

of

e

Insurance

Account

shall

be

collected

from

account

holders

of

eIA

either

by

an

Insurance

Repositoryorbyaninsurer.

48.MiscellaneousProvisions(1) The recordof insurance policiesmaintainedwith the insurance repository shallbe consideredfinalandshalloverridethoseoftheinsurerincasethereisdifferencebetweentherecordofthe

insurancecompanyandthatoftheinsurancerepository.

(2) The Authority shall constitute Committee consisting ofmembers drawn from various sourcesincluding

the

insurers,

policyholders,

IT

professionals,

Authority,

or

any

other

persons

as

may

be

decided by the Authority to look into the proper and efficient performance of the insurance

Repository.Thecommitteeshalldeliberateonalloperationalandpolicymattersforthesmooth

functioningoftheinsurancerepository.

(3) The insurancerepositoryshallensurethatthey improveupontheservicestandardsspecified intheIRDAs(ProtectionofPolicyholdersInterests)Regulations,2002fordifferentservices.

(4) Inorder to remove anydifficulties in respectof the interpretationof anyof theprovisionsoftheseGuidelines,theAuthoritymayissueappropriateclarificationsfromtimetotime.

(5) NoAdvertisementsshallbepublishedinthewebportalofInsuranceRepositories.(6) The apportionment of related costs shall be upfront agreed amongst insurers and insurancerepositorieswhileenteringintoAgreement.


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sd

J.Harinarayan

Chairman,IRDA

IRDAFORMInsuranceRepository1

ApplicationforgrantingaCertificateofRegistrationtoActasInsuranceRepository

S.No. Particulars Details

A GeneralInformation

1 FullNameoftheApplicantCompany

2 PlaceandDateofIncorporation

3 AddressofHeadOffice

4 RegistrationNo.(IssuedbyregistrarofCompanies)

B Underwhich of the following category does the applicant fall?

Pleaseticktheappropriatebox

1 a public limited company registered under the Companies Act,

1956withaminimumsharecapitalofRs5lakhs;

2 a public financial institution as defined in section 4A of the

CompaniesAct,1956(1of1956);

3 awholly owned subsidiary of an existing depository registered

with Securities and Exchange Board of India under the

DepositoriesAct,1996

4 a company fully promoted by either life insurance council or

generalinsurance

council

or

by

both

together

or

jointly

with

any

oftheabove.

5 anyotherinstitutionpermittedbytheAuthority


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5 Particularsofotherinfrastructurelikeofficespace,equipment

andmanpoweravailablewiththeapplicant

6 ParticularsofInformationTechnologyexpertiseavailablewiththe

applicant

7 ParticularsofInsuranceexpertiseavailablewiththeapplicant

8 Writeupondemonstrablecompetenceandexperiencesimilarto

insurancerepositoriesintermsofvolumesandtechnology

9 Anyotherinformationrelevantforconsideringtheapplication:

E FinancialPositionoftheApplicant(fortheprecedingthree

financialyears):

1 Detailsofcapital

i. AuthorisedCapitalandIssuedCapitalii. Paidupcapital:iii. NetWorthoftheApplicantCompany(AttachaCertifiedCopyfromapractisingCharteredAccountant)

2 ExistingbusinesspartnerscontributingMajorSourcesofIncome

(morethan20%ofIncome):

3

Particularsof

pending

disputes

having

apotential

impact

on

the

financesoftheApplicant:

F HasGovernmentofIndiaoranyRegulatorybodytakenanyaction

orimposedanypenalty,fine,etcontheapplicantcompanyoron

itssubsidiaries/associates.Ifso,thedetailsthereof.

G SupervisoryArrangements

1 Detailsofsupervisoryjurisdictionofanyregulatortowhichthe

applicantcompanyissubjectto.

2 ParticularsofSubsidiariesoftheApplicant(Mentionseparately

foreachsubsidiary)andtheirrespectivesupervisoryjurisdiction:

i. Nameandprincipalplaceofbusiness:


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ii. Detailsofshareholdingbytheapplicant:iii. PrincipalBusiness:iv. NumberofofficesandtheirlocationsinIndia:v. NameofCountriesinwhichthesubsidiaryoperates:vi. PaidupCapital:vii.NetWorth:

3 WhethertheApplicantoritssubsidiariesoritsshareholders

currentlyholdavalidlicensetoactasInsuranceBrokeror

CorporateAgentorThirdPartyAdministrator.Ifyes,provide

furtherdetails

4

Whetherthe

Applicant

or

its

subsidiaries

or

its

shareholders

held

avalidlicenseatanytimetoactasInsuranceBrokerorCorporate

AgentorThirdPartyAdministrator.Ifyes,providefurtherdetails.

5 Pastrecordofregulatoryinterventions/restrictivedirections

issuedinrespectofpromotercompanies

H Documentstobeenclosed

1 CopiesofMemorandumandArticlesofAssociation

2

Last3years

Audited

financial

statements

3 AffidavitbytheapplicantthatithasnoForeignDirectInvestment

4 NonrefundableprocessingfeeofRs10,000/

Weherebydeclarethat:

i) Theparticularsgivenabovearetrueandcorrecttothebestofourknowledgeand belief;

ii)

Wewill

abide

by

the

terms

and

conditions

that

may

be

stipulated

by

Insurance

Regulatory

and

DevelopmentAuthority,ifapprovalisgiven.


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Place: (SignatureofAuthorisedOfficialoftheApplicantCompany)

|

Name:

Date: Designation:

FormInsuranceRepository2

InsuranceRegulatoryandDevelopmentAuthority

CertificateofRegistrationtoActasInsuranceRepository

In exercise of powers conferred by Clause 10 of Guidelines on Insurance repositories and electronic

issuanceofinsurancepoliciesvideCircularNo:_____________dated____________theAuthorityhereby

grantsCertificateofRegistrationto_____________________toactasInsuranceRepository.

NumberofCertificateofRegistrationforInsuranceRepositoryis_________

ThisCertificate

of

Registration

is

valid

from

____

ThisCertificateofRegistration issubjectto InsuranceAct,1938; IRDAAct,1999;Regulationsnotifiedby

IRDAandGuidelinesonInsurancerepositoriesandelectronicissuanceofinsurancepolicies.

Byorder

ForandonbehalfofInsuranceRegulatoryandDevelopmentAuthority