Insurance policies will have to be linked mandatorily with Aadhaar. This has been said by insurance regulator IRDAI (Insurance Regulatory and Development Authority of India). While Aadhaar is already compulsory for many essential tasks, you will now be required to link insurance policies with Aadhaar card. Insurance regulator IRDAI asked insurers - general and life - to implement the rules without awaiting further instructions. An Aadhaar-insurance policy linkage is mandated under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017, the regulator said in a statement dated November 8, 2017. "These rules have statutory force and, as such, life and general insurers (including standalone health insurers) have to implement them without awaiting further instructions," IRDA said. Many insurance companies have been asking their customers to update their KYC details including PAN and Aadhaar.
Here are five things to know on Aadhaar card-insurance policies linking:
IRDAI said Aadhaar and PAN/Form 60 are mandatory for obtaining financial services including insurance. Form 60/61 is submitted by those not owning a PAN (Permanent Account Number) card for making a transaction where quoting of PAN is mandatory. (Also read: How to link Aadhaar with PAN)
"Central Government vide gazette notification dated 1st June 2017 notified the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aadhaar and PAN/Form 60 mandatory for availing financial services including Insurance and also for linking the existing policies with the same," IRDAI said.
The Aadhaar linkage rule is applicable on life insurance companies and general insurance companies including standalone health insurers, IRDAI clarified.
The Insurance Regulatory and Development Authority of India or IRDAI, constituted by an act of Parliament to protect the interest of and ensure fair treatment to policyholders, consists of 10 members - a chairman, five whole-time members and four part-time members.
There are 24 life insurance companies and 33 general insurers (including standalone health insurers) operating in the country.
(With agency inputs)