Insurance Repository Registration

Insurance Repository Registration -An Overview

With the rapid expansion of the insurance sector in India, the regulatory authority has introduced an improved solution for storing policy and consumer information digitally—the Insurance Repository System. This system serves as a centralized platform for the secure storage of insurance documents, ensuring easy access and better management for both insurers and policyholders.

To operate as an insurance repository, a company must be registered under the Companies Act, 1956/2013 and obtain a Certificate of Insurance Repository Registration from IRDA (Insurance Regulatory and Development Authority). This certificate allows the company to maintain insurance policies in electronic form on behalf of insurers.

The IRDA grants insurance repository license only to companies that meet its strict standards, ensuring a secure and efficient implementation of the Insurance Repository System. If you are worried about the challenges in the path of insurance repository registration, talk to our experts today for a stress-free experience.

What is an Insurance Repository?

An Insurance Repository (IR) is a company licensed by IRDA to maintain data of insurance policies in electronic form, instead of paper document. Its objective is to maintain data on insurance policies in electronic form on behalf of the insurers.

This enables policyholders to buy insurance and keep in the electronic medium. For this, the policyholder needs to open an e Insurance Account (e IA) with one of the Repositories to be able to buy and keep policies in the electronic mode.

Benefits of Insurance Repository Registration

Some of the major lists of benefits of Insurance Repository registration are as follows:

Cost-effectiveness

Digitization has lowered the cost of paper-based documents, such as fees for printing, storing, and courier service.

Data security

Comprehensive data security ensures that policy papers are protected from loss, destruction, and various other unwanted access.

Transparency

Insurance Repository services are indeed transparent in their operations, such as updates on policy status, premiums, and benefits.

Environmentally Friendly

Insurance repository system registration helps to maintain a sustainable environment by reducing the consumption of less paper.

Easy Updation

Policyholders can update their personal details like address, phone number, or email address online without any hassle.

Easy Claims Settlement

Policyholders can have easy access to claim settlement.

Who Needs an Insurance Repository License in India?

There are several entities that require insurance repository license in India. Given below are the entities that must register as an insurance repository with the Insurance Regulatory and Development Authority (IRDA) in order to manage insurance policies in an electronic manner-

• Life Insurers
• Non-life Insurers
• Health Insurers
• Brokers
• Reinsurers
• Surveyors
• Corporate Agents
• Web Aggregators

Market Size of Insurance Repository

The boon of digitization started across the globe when COVID-19 hit the world in no way that one could have predicted. Meanwhile, in India, an insurance repository the first of its kind in the world was launched on 16th September 2013. Amid these changes, an insurance repository emerged as an advantage in the insurance sector, facilitating e-insurance.

Meanwhile, the profitability of insurance repositories largely depends on their respective financial investment performance, which is again linked to developments in the financial markets and inflation rates.

The Insurance Regulatory and Development Authority of India (IRDAI) initially granted a certificate of Insurance repository registration to NSDL Database Management Ltd, Central Insurance Repository Ltd, SHCIL Projects Ltd, Karvy Insurance Repository Ltd, and CAMS Repository Services Ltd.

Eligibility Criteria for Insurance Repository Registration

Here given below are the eligibility criteria for Insurance Repository Registration-

1. The applicant must belong to any one of the following categories as provided below:
   • A Public limited company registered under the Companies Act, 2013 with a minimum share capital of Rs 5 lakhs.
   • A public financial institution as defined in section 4A of the Companies Act, 2013.
   • A SEBI-registered depository's subsidiary.
   • A company promoted by the Life or General Insurance Council, or both.
   • A Strategic Business Unit (SBU) of the eligible institutions, provided they convert into a company under the Companies Act, 2013, within two months.
   • The name of the company must include the words ‘insurance repository’ in its name.
   • Any other institution as may be permitted by the concerned authority.
2. Applicant's net worth shall be at least Rs.25 Crores on grant of in-principal approval by the authority.
3. The applicant or promoters shall have relatable experience.
4. The applicant shall have no foreign direct investment.
5. The applicant or its promoters shall have no conflict of interest with the insurance business.

Documents to Apply for Insurance Repository Registration

The list of documents required to apply for insurance repository registration is as follows:

• Certificate of Registration
• Net Worth Certificate
• Object of the Company
• Memorandum of Association
• Non-refundable license Processing fee Receipt
• Duly filled Application Form

Insurance Repository System Registration Process

Here, given below is the end-to-end insurance repository system registration process in India:

1. Check the eligibility conditions.
2. The IRDAI shall issue a request for proposals (IRDAI has the authority to set the maximum limit if insurance repositories).
3. Filing of an application form.
4. Drafting of the application form along with the required documents.
5. Attachment of the non-refundable demand draft of Rs 10,000/- (Rs. Ten Thousand).
6. Posting of the said application.
7. The authority will receive the application and accordingly issue in-principal approval.
8. The applicant upon receiving the in-principal approval within 15 (fifteen) days must submit an affidavit along with a registration fee of Rs.1,00,000/- (One Lakh).
9. Followed by physical verification of the applicant's infrastructure facilities and system established.
10. Lastly, the IRDAI will grant the insurance repository license certificate.

Post Compliance for Insurance Repository Registration

The post-compliance requirements for an insurance repository registration in India are as follows:

1. It shall not be in conflict with the supervisory role of other regulatory bodies.
2. Any transfer of shares exceeding 5% of the paid-up capital in the Insurance Repository Company shall obtain prior approval of the authority.
3. Shall not be engaged in insurance solicitation or any insurance-related activities and services.
4. The insurance repository shall comply with the provisions of the Insurance Act, 1938, the IRDA Act, 1999, specified regulations, guidelines, and circulars as issued by the authority from time to time.

Penalty for Non-compliance of Insurance Repository Guidelines

The list of penalties for non-compliance with Insurance Repository guidelines is as follows:

1. Failure to file any return, or furnish any information or documents shall be liable to a penalty of one lakh rupees for each day of failure continuation or one crore rupees, whichever is less for each such failure.
2. Failure to maintain books of account or records shall be liable to a penalty of up to one lakh rupees for each day of failure continuation or one crore rupees, whichever is less for each such failure.
3. Failure to redress policyholder’s grievances shall be liable to a penalty of up to one lakh rupees for each day of failure continuation or one crore rupees, whichever is less for each such failure.
4. Failure to comply with directions issued by the Authority under the Insurance Repository guidelines shall be liable to a penalty of up to one lakh rupees for each day of failure continuation or one crore rupees, whichever is less for each such failure.

Insurance Repository Registration Recent Updates

The government of India, through the Insurance Regulatory and Development Authority of India (IRDAI), has made it mandatory, effective from 1st April 2024, that all insurance policies are to be issued digitally in alignment with regulations to protect the interest of policyholders.

Therefore, it is now mandatory for policyholders to dematerialize their policies by opening an e-insurance account(eIA). Thus, this facilitates the management of all life, health, and general insurance policies in one place. Insurance Repository Registration has gained attention in recent times.

Validity and Renewal of Insurance Repository License

The validity of the insurance repository license in India is for three years from the date of issuing of the registration certificate. Meanwhile, the renewal of the insurance repository registration certificate shall be made at least 60 days prior to the expiry of the certificate.

Insurance Repository Registration Fees

As per the insurance repository registration guidelines, the application for insurance repository registration must be accompanied by a processing fee of Rs 10,000/- (Rs. Ten Thousand) and a registration fee of Rs.1,00,000/- (Rs. One lakh) that shall be drawn on IRDA, Hyderabad. Additionally, the renewal fee of the certificate of registration is Rs 50,000/- (Rs. Fifty Thousand).

Timeline for Insurance Repository Registration

The timeline for the insurance repository registration with IRDAI is in the range of 6 to 12 months. It may extend further if regulatory delays take place.

Why Pick Enterslice for Insurance Repository Registration?

At Enterslice, our team of professionals specializes in insurance repository registration. With over a decade of experience in the regulatory space, we help companies navigate registration, compliance, and regulatory requirements, ensuring all their needs are met efficiently and effectively.

Given below are the ways through which we expedite the process of attaining the insurance repository registration certificate-

1. Assistance in the Filing of an Application
2. Support in Drafting and Compiling the Required Documents
3. Assistance in Conducting Due Diligence with the IRDAI
4. Post-registration Support and Assistance in Alignment with the IRDAI
5. In-depth Understanding of Insurance Repository Regulations
6. Integration of the Insurance Repository with your Existing IT Infrastructure
7. Management of Insurance Policy Documents within the Repository
8. 10+ Years of Proven Track Record in Regulatory Segment
9. 24/7 Availability to Assist you in Getting an Insurance Repository License
10. Simplify the Process of IRDA Registration Online