Objective and Utilization of Insurance Repository
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. Exclusive maintenance with insurance repositories
(1) Where an insurer issues and maintains ‘e insurance policies’, he shall mandatorily do so by utilizing the services of an insurance repository granted certificate of registration by the Authority under these Guidelines. All such insurance policies in electronic form shall be treated as valid insurance contracts.
(2) Every insurer shall enter into service level agreements with all insurance repositories that have been granted a certificate of registration by the Authority for issuing and maintenance of e insurance policies.
Eligibility norms for setting up an Insurance Repository
(1) The Authority shall not consider an application for insurance repository, unless the applicant belongs to one of the following categories, namely:-
a.a public limited company registered under the Companies Act, 1956 with a minimum share capital of Rs 5 lakhs;
b.a public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956);
c.a wholly owned subsidiary of an existing depository registered with Securities and Exchange Board of India under the Depositories Act, 1996
d.a company fully promoted by either life insurance council or general insurance council or by both together or jointly with any of the above.
e.any other institution permitted by the Authority
(2) One of the main objects of the company shall be to act as an insurance repository of “e insurance policies†issued by insurers and to undertake their changes, modifications and revisions based on such requests by policyholders.
(3) The Net Worth of the applicant, on grant of in-principle approval by the Authority, shall be at least Rs 25 Crores before issuance of certificate of registration to it.
(4) The applicant or its sponsors shall have demonstrable competence and experience of similar activities, volumes and technology.
(5) The applicant or its sponsors shall have proven financial and organizational strength to undertake and execute the project.
(6) The applicant or its sponsors shall have no conflict of interest with insurance business.
(7) The insurance activities to be undertaken by the applicant shall be under the sole supervision of the Authority with no conflict with the supervisory role of other regulatory bodies.
(8) The applicant shall have no foreign direct investment.
(9) Any transfer of shares exceeding 5% of the paid up capital in the applicant company shall require prior approval of the Authority.
(10) The insurance repository or its approved person shall not be engaged in insurance solicitation or in any of insurance related activities and services. Provided that any IRDA licensed entity may act as approved person.
(11) To avoid a potential conflict of interest no insurance company shall hold more than 10% of the paid-up capital of the applicant company or hold any managerial position in the applicant company.
Application for grant of certificate of registration:
(1) The Authority shall have power to limit the number of insurance repositories and shall call for “Request for Proposals†as and when deemed necessary.
(2) On calling for ‘Request for Proposal’ an application for the grant of a certificate of registration as an “insurance repository†shall be made to the Authority in Form – Insurance Repository -1. It shall be accompanied by a non refundable processing fee of Rs 10,000/- drawn on IRDA, Hyderabad.
(3) No person shall act as an insurance repository unless it obtains a certificate of registration from the Authority and no insurer shall engage an insurance repository who has not obtained a certification of registration from the Authority.
(4) The power of the Authority to grant the certificate of registration shall be final.
(5) The certificate of registration shall be renewed every year on payment of an annual fee of Rs 20,000 in favour of IRDA payable at Hyderabad unless the Authority decides, either to suspend or cancel it, as provided in these Guidelines.
Application to conform to the requirements:
(1) An application in Form – Insurance Repository -1, which is not complete in all respects and does not conform to the instructions specified therein and these guidelines, shall be rejected
(2) Provided that before rejecting any such application, the applicant shall be given an opportunity of being heard.
Furnishing of information, clarification and personal representation:
(1) The Authority may require the applicant to furnish such further information or clarification regarding matters relevant to the activity of the insurance repository for consideration of the application.
(2) The applicant shall, if so required, appear before the Authority for personal representation, in connection with the grant of certificate of registration.
Consideration of application for grant of certificate of registration
(1) Every application received by the Authority pursuant to these Guidelines shall be considered by it within a reasonable time and its decision thereon communicated to the applicant.
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