Insurance Repository Registration in India

The growth of the Insurance sector in the country has been exponential. Various Government initiatives have supported such a sector. The Union Government has pushed for the digitization of Insurance Sell/Purchases on an online platform and further the FDI limit for the registered Insurance Companies.

Every insurance sale is ascertained by issuing a policy document to the policyholder by the Insurer. Earlier, such documents were issued in hard copy, prone to missing, tearing, spoiling and ruining if the policyholder is reckless with the record.

Therefore the Regulatory Authority and Insurance Companies pushed for a better alternative to store the policy as well as the consumer details on the digital platform. They are also working on enhancing the user experience and avoiding using paper for documenting Insurance Policies.

Since the Insurers themselves have to maintain a database of insurance policies, the Authority has come up with a solution for the warehousing of these documents. This will open the space for budding entrepreneurs to work on the digitalization of insurance documents.

Insurance Repository

Insurance Repository is a Company registered under the Companies Act of 2013. It is a public limited company. Such specific entities are granted the Certificate of Registration by the IRDAI, i.e., the Insurance Regulatory and Development Authority, for the data management of insurance products and services. The information in the Repository is stored in digital form on behalf of Insurance Companies. It provides ease of holding insurance policies issued in electronic form.

Purpose of the Insurance Repository

The objective of setting up an Insurance Repository is to provide insurance policyholders with a Dataware house facility to keep their policies in an electronic form. It is also set up to undertake any modifications or revisions in the policy document. Thus a repository enables maintaining an efficient, transparent and cost-effective database to store and maintain insurance policies.

Benefits of Insurance Repository Registration in India

We have enlisted some of the benefits of availing services of Insurance Repositories in India:

• Repository facilitates details updation in a policy document on a simple request
• Repository alerts for premium payments for the Insurers
• Repository enables hike in service touch points
• Repository facilitates quick bank account details registration for premium payments
• Repository requires one-time KYC updation
• Repository facilitates policy document storage e-format
• In a Repository, all insurance policies are maintained by a single system
• Repository issues consolidated insurance statement at the end of each fiscal year
• Repository keeps a single view of all policies 
• Repository facilitates claim intimation

Eligibility Criteria for Repository Registration in India

As an Insurance Repository applicant, you must conform to the following criteria before filing the registration application:

Applicant as a Business Entity

The applicant must be any one of the following:

• A registered Public Limited Company as per the regulations of the Companies Act of 2013
• A Financial Institution or a wholly owned subsidiary of an existing depository registered with the SEBI (Securities and Exchange Board of India)
• A Company promoted by the Life or General Insurance Council or both

Name of the Applicant Company

The applicant must have “Insurance Repository” in its officially registered name to communicate the activities intended for the company.

Objective of the Applicant Company

The object of the applicant company must be to act as an Insurance Repository of insurance policies issued by insurers as well as to undertake any modification and revision in such e-insurance policies as authorized by the Insurer based on the request of the policyholders.

Net Worth

The net worth of the applicant company must have a minimum of 25 crore rupees on a grant of in-principal approval by the Authority. Also, the applicant cannot have any FDIs from foreign establishments.

Documents Required for Insurance Repository Registration

The applicant must submit the following documents along with the Insurance Repository license application to the IRDAI:

1. Certificate of Registration of the applicant Company
2. Net worth Certificate of the Applicant Company
3. Object of the Company/Memorandum of Association
4. A Non-Refundable license processing fee receipt
5. Duly filled Application Form R-1
6. And other relevant documents as required by the IRDAI

Process of Insurance Repository Registration in India

The IRDAI has a different mechanism when it comes to registering an Insurance Repository in India. The Authority limits the registration of new Insurance Repositories in India. Its calls for Request Proposals as and when it deems necessary. The applicant must file the application for registration as an Insurance Repository upon receiving the call for Proposals. The application must be addressed to the Authority in Form IR-1.

Let us understand the procedure in the following steps:

1. Check for your eligibility for the required registration and prepare yourself accordingly.
2. IRDAI issues the request for proposal for Insurance Repository registration.
3. Prepare and draft the required documentation for registration.
4. Fill out the application form IR-1 with the relevant details.
5. Draft the application along with the requisite documents.
6. Attach the DD or the payment order of the non-refundable processing fees of INR 10,000/- drawn on IRDAI.
7. Post the application. The Authority will receive the application for assessment.
8. The applicant must also provide an affidavit to the IRDAI Authority within 15 days of receipt of Intimation from the Authority during the assessment period.
9. The IRDAI mandates one physical visit to its premises before issuing the Certificate of authorization for further assessment.
10. Finally, the IRDAI will grant the Certificate for setting up the Insurance Repository to the applicant.

Registration Certificate Validity & License Renewal

The Certificate of registration is valid only for three years. After the lapse of such a period, the applicant must file for a renewal application to carry on the business of the Insurance Repository.

The Repositor must make the application for renewal at least 60 days before the expiry of the Certificate of Registration. The renewal charges will be INR 50,000 in favour of IRDAI, payable at Hyderabad.

Our Assistance in filing for the Insurance Repository Registration in India

Registrationwala provides end-to-end services for aspirants of Insurance Repository Registration in India. To expedite the process:

• We file the application on your behalf
• We draft and compile your documents
• Conduct the due diligence with the IRDAI
• And finally, I will deliver you the Certificate of Registration

In the end, we ensure that you don’t have to worry about taking a lot of time to get the NOC to set up your Insurance Repository in India.

FAQs

Q. What is meant by the Insurance Repository?

A. Insurance Repository is a Company registered under the Companies Act of 2013. It is a public limited company. Such specific entities are granted the Certificate of Registration by the IRDAI, i.e., the Insurance Regulatory and Development Authority, for the data management of insurance products and services.

Q. How are the Insurance details saved in the Insurance Repository?

A. The information in the Repository is stored in digital form on behalf of Insurance Companies. It provides ease of holding insurance policies issued in electronic form.

Q. What is the purpose of the Insurance Repository in India?

A. The objective of setting up an Insurance Repository is to provide insurance policyholders with a Dataware house facility to keep their policies in an electronic form. It is also set up to undertake any modifications or revisions in the policy document. Thus a repository enables maintaining an efficient, transparent, and cost-effective database to store and maintain insurance policies.

Q. What is the required documentation for Insurance Repository registration?

A. The applicant must submit the following documents along with the Insurance Repository license application to the IRDAI:

• Certificate of Registration of the applicant Company
• Net worth Certificate of the Applicant Company
• Object of the Company/Memorandum of Association
• A Non-Refundable license processing fee receipt
• Duly filled Application Form R-1
• And other relevant documents as required by the IRDAI

Q. What is the validity of the Certificate of registration of Insurance Repository?

A. The Certificate of registration is valid only for three years. After the lapse of such a period, the applicant must file for a renewal application to carry on the business of the Insurance Repository.

Q. How to file for the renewal application for Insurance Repository registration in India?

A. The Repositor must make the application for renewal at least 60 days before the expiry of the Certificate of Registration. The renewal charges will be INR 50,000 in favor of IRDAI, payable at Hyderabad.