After going through CAMsRep and reading about the benefits of buying and keeping insurance policies in electronic mode, I am keen to switch over. Is it really useful? Are there any hidden costs?
An Insurance Repository is a company licensed by IRDA for maintaining data of insurance policies in electronic form on behalf of insurance companies. It is approved by Insurance Regulatory and Development Authority (IRDA). CAMSRep is one among the 5 repositories that also include the NSDL Database Management, Central Insurance Repository, SHCIL Projects, and Karvy Insurance Repository.
You can consolidate all your existing insurance policies and buy new ones electronically with a unique account number. Currently, the facility is only limited to life insurance and pension plans. General insurance may be included in future. Convenience is the key benefit of electronic mode. With the repository as the single point of service, updating or changing details like address or nomination will become easier, faster and more reliable. If the change is at the account level, the repository will execute it after due verification and then intimate the insurance company. However, if the change is at the policy level, the repository will forward the request to the insurance company. Your paperwork will reduce and it will become easier to track your policies as the details will be available at one place. You won't have to go to different offices anymore.
The policyholder has to pay nothing to open an e-insurance account or hold the policies in the demat form. All the services provided by insurance repositories are also free. You don't need to pay anything for converting the existing policies into electronic form.