What is an Insurance Repository?
An Insurance Repository (IR) is a company licensed by the Insurance Regulatory and Development Authority of India (IRDAI) to maintain data of insurance policies in electronic form on behalf of insurers. It allows policyholders to hold all their insurance policies—life, health, motor, etc.—in a single electronic insurance account (eIA).
Benefits of an Insurance Repository Account
- Convenience: Single point of access for all insurance policies. No need to maintain physical documents.
- Safety: Eliminates the risk of loss or damage to physical policy documents.
- Efficiency: Easier to track policy details, renewal dates, and premium payments.
- Simplified Changes: Address or contact details can be updated once in the eIA, and it reflects across all policies.
- Paperless: Promotes an eco-friendly, paperless environment.
Eligibility Criteria for Insurance Repository License
Entities wishing to function as an Insurance Repository must meet specific criteria set by IRDAI:
- Company Structure: Must be a public limited company registered under the Companies Act, 2013.
- Net Worth: Minimum net worth requirement (typically Rs. 25 Crores) must be met and maintained.
- Foreign Investment: Foreign investment is allowed but subject to sectoral caps and guidelines (currently up to 74% with approval).
- Infrastructure: Must have adequate IT infrastructure and data security measures.
- Fit and Proper: Directors and key management personnel must meet the 'Fit and Proper' criteria.
Documents Required for Registration
- Certificate of Incorporation and Memorandum & Articles of Association (MoA & AoA).
- Details of Directors and Key Management Personnel (KYC, profiles).
- Net worth certificate from a Chartered Accountant.
- Detailed business plan and financial projections for the next 3-5 years.
- Details of IT infrastructure, data security policies, and disaster recovery plans.
- Shareholding pattern details.
Registration Process
- Application Submission: Submit the application in the prescribed format (Form IR-1) to IRDAI along with the non-refundable application fee.
- Scrutiny: IRDAI scrutinizes the application and documents. They may ask for additional information or clarifications.
- In-Principle Approval: If satisfied, IRDAI grants in-principle approval valid for a specific period (usually 6 months) to set up the infrastructure.
- Verification: IRDAI conducts an on-site inspection to verify the IT systems and infrastructure.
- Grant of Certificate: Upon successful verification and payment of registration fees, IRDAI issues the Certificate of Registration.
