Month: April 2018

e-insurance account

e-insurance account

Steps to opening an e-insurance account

1) Select the insurance repository or contact your insurer that has partnered with a repository.

List of Insurance Repositories

Insurance Repository Website
M/s NSDL Database Management Limited
M/s Central Insurance Repository Limited,
M/s Karvy Insurance Repository Limited 
M/s CAMS Repository Services Limited,


What is an Insurance Repository?
Insurance Repository is a facility to help policy holders buy and keep insurance policies in electronic form, rather than as a paper document. Insurance Repositories, like Share Depositories or Mutual Fund Transfer Agencies, will hold electronic records of insurance policies issued to individuals and such policies are called “electronic policies” or “ePolicies”.

2) Download the account opening form from the website of the repository or the insurer.
3) Submit the documents, along with KYC documents, to the ‘Approved Person’, website or branch of insurer.

What are the documents required to open an eIA Account?

  • ID Proof: Aadhar Card or PAN Card
  • Address Proof: Any one of Aadhar letter, Passport,Voter ID card, Driving license, Bank Passbook

4) The ‘Approved person’/ insurer will verify the e-insurance form and process the application.

5) The form will be submitted to insurance repository if you have deposited it with your insurance company.
6) The repository will open the account and send the ID and password via text and e-mail to you.
7) You can log in to the repository website and access your policy details.
8) Existing policies can be linked to e-insurance account by submitting the required form to repository. You can view and download policy.

What are the benefits of holding Insurance Policies in electronic form?

There are multiple benefits in holding insurance policies in electronic form under a single eInsurance Account (eIA). These benefits include:

  • Safety: There is no risk of loss or damage of a policy as may happen with paper policies; the electronic form ensures that the policies are in safe custody and can be easily accessed when needed.
  • Convenience: All insurance policies, be it life, pension, health or general, can be electronically held under a single eIA. This means all details of all policies are available in a single account (place). The details of any of the policies can be accessed at any time by logging on to the online portal of Insurance Repository. Premium for all the policies can be paid online and many service requests or complaints can be logged at this website.
  • Single Point of Service: All service requests in respect of eIA or any of the electronic policies held under the eIA can be submitted at any of Insurance Repository’s service points – there is no need to go to the offices of individual insurance companies for service.
  • Less Paper work: When you want to buy a new electronic insurance policy under an existing eIA, you don’t need to go through KYC verification all over again, if there are no changes to your KYC details already recorded in your eIA. Further, if you want to make any changes to your personal details like address or contact no, it is enough to change the details in your eIA with Insurance Repository by submitting a single request – Insurance Repository, in turn, will inform all the insurance companies with whom you hold electronic policies, about the changes.
Loan against life insurance policy

Loan against life insurance policy

Apart from an insurance cover that a life insurance policy provides, it can also be used to secure a loan at a competitive rate. These loans are provided by the insurance company itself or any other NBFC or bank, which provides loans against securities. This facility is, however, not available against term insurance policies or Ulips that invest in equity or equity-oriented securities.

Loan amount

The maximum value of a loan depends upon the type of policy and its surrender value. The amount of loan is typically a percentage of the surrender value of the policy. Loan amount can be as high as 80% to 90% of surrender value in case of traditional money back or endowment insurance policies. Some insurance companies take into consideration about 50% of the total premiums paid to calculate the maximum loan amount.


To avail the loan, a loan application form needs to be filled by the insurance policy holder. The application form must be accompanied with the original insurance policy document. A payment receipt for the loan amount and a copy of a cancelled cheque must also be enclosed with the application.

Deed of assignment

The insurance policy needs to be assigned in favour of the lending institution/insurance company as the case may be. The assignment deed needs to be executed by the policyholder in the prescribed format. Assignment details are endorsed on the policy document as well.


The insurance company or financing institution may charge a nominal loan processing fee for disbursal of the loan.

Points to note

  • Interest rates on loan against insurance policy is usually much lesser than a personal loan.
  • If in case the interest due on the loan exceeds the surrender value, the policyholder runs the risk of losing insurance cover.

Using Loan EMI Calculator, calculate total interest paid & total principal amount paid at the end of every financial year. Download Mobile app from

Asset Allocation in Mutual Funds

Asset Allocation in Mutual Funds

1. What is asset allocation all about?

Asset allocation is the process of deciding how to divide your investment across various asset categories, such as equity mutual funds, debt mutual funds and cash, which are the most common components of an asset allocation strategy.

The objective of asset allocation is to minimise volatility and maximise returns. The process involves dividing your money among asset categories that do not all respond to the same market forces in the same way at the same time.

Asset allocation varies from one investor to another. It is determined based on your age, lifestyle, goals and risk-taking appetite. For example, a conservative investor will be told to hold 50% in equity mutual funds, 45 per cent in debt mutual funds and 5 per cent in gold funds.

2. How does asset allocation work?

Before embarking on your financial journey or investing in any financial product, typically a financial planner or wealth manager suggests an asset allocation based on his assessment of an investors profile.

For example, an investor holding a Rs 1-crore portfolio could have 50 per cent allocation to equity mutual funds, 45 per cent to debt mutual funds and 5 per cent to gold funds. This is supposed to be monitored on a regular basis.

So after a year, if due to a rise in the stock markets, equity mutual fund allocation rises to 60 per cent, it should be brought back to its original level of 50 per cent. This is necessary to avoid a higher loss to the portfolio if equities fall due to some reason. Wealth managers say sticking to an asset allocation plan is crucial to achieving your financial goals.

This approach reduces risk on the portfolio too. When the equity component goes up, the investor can bring back his allocation by switching some units back to debt funds.

Similarly when allocation falls due to a fall in the market, he can increase it to his original allocation by switching from debt funds to equity funds.

3. Why should one follow an asset allocation?

It is difficult to predict which asset class will go up when or to time the markets. For example, equities may be up while gold may be down, and vice-versa. However, if you have your wealth spread across assets, you will be less hit and get the best risk adjusted returns. Wealth managers believe in the long term, 90 per cent returns come from proper asset allocation.

4. How often should one review asset allocation?

Investors should review it at least once a quarter. If any asset class moves up or down by more than 10 per cent of their targeted allocation, they could look at rebalancing their portfolio.