Updated on - 06 Feb 2026
If you already have insurance, you may be wondering if you still need to link your Aadhaar card. Although linking is not absolutely required, it is strongly advised by the Insurance Regulatory and Development Authority of India (IRDAI) to link the policies with the Aadhaar number. In certain situations, such as during claim settlement, Aadhaar linkage can be helpful.
Linking your Aadhaar helps you meet Know Your Customer (KYC) compliance, simplifies verification and can lead to faster claim processing. It is particularly useful if you do not have other updated KYC documents. This article takes you through the benefits, reasons and challenges people face during Aadhaar card linking. Let's start with the advantages.
Benefits of linking Aadhaar to your health insurance policy
When you link your Aadhaar card to your health insurance, here are the benefits you can expect:
- Quick claims: By facilitating quicker identification verification, connecting the Aadhaar card expedites the claims settlement procedure.
- Direct benefit transfer: You don’t have to keep track of payments because claim amounts can get credited straight to your bank account.
- Simplified KYC: Streamlining the KYC process helps you manage your policy in a simpler way.
- Improved security: Linking assists in the prevention of money laundering, fraudulent activity and redundant rules.
- Centralised record: It makes financial management easier. You get the option to view all of your insurance policy details and other financial data in one place.
- Regulatory compliance: It helps assure compliance with regulatory rules, which can prevent future complications with your policy.
- Digital access: You may access and manage your policy details online, reducing the need to store documentation copies.
Why is KYC done when buying an insurance policy?
Know Your Customer (KYC) is a mandatory process in financial transactions, including insurance. It ensures transparency, prevents fraud and verifies the identity of policyholders.
Key reasons for KYC in insurance:
- Prevents identity theft and fraudulent claims.
- Complies with government regulations.
- Ensures that the benefits of insurance reach the rightful policyholder.
- Helps insurers assess risk and issue appropriate policies.
When purchasing a health insurance policy, KYC documents such as a PAN card, voter ID, passport or Aadhaar may be required for verification.
Why was Aadhaar linked to insurance policies earlier?
In 2017, the government made it mandatory to link Aadhaar with financial services, including insurance policies. The primary reasons for this move were:
- To streamline the identification process and eliminate duplicate or fake policies.
- To curb money laundering and fraudulent claims.
- To improve efficiency in claims settlement and reduce paperwork.
However, the Supreme Court later ruled that Aadhaar linking cannot be mandatory for services other than government subsidies. As a result, its requirement in insurance policies was reconsidered.
Is Aadhaar mandatory for existing insurance policies?
Making its stance clear, the insurance regulator IRDAI (Insurance Regulatory and Development Authority of India) has said that Aadhaar is not required to buy an insurance policy. It released a circular that stated, “In view of the order of the Hon’ble Supreme Court of India for existing insurance policies, the date of linking Aadhaar is extended till the matter is finally heard and the judgment is pronounced by the Hon’ble Supreme Court of India.”
Further to this, IRDAI said that customers buying new insurance plans will be given 6 months from the date of the policy to submit their Aadhaar number, failing which, they will need to submit any “officially valid documents” as mentioned in the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005.
The “officially valid documents” consist of a driving license, a passport, a PAN card and a voter identity card, among others. All of these documents, except the PAN card, can serve both as photo and address proof.
How to link Aadhaar with insurance policies - Online and offline
While Aadhaar linking is optional, some policyholders may prefer to use it for convenience. Here’s how you can link Aadhaar to your insurance policy.
Online process:
- Visit the insurer’s website and log in to your account.
- Go to the Aadhaar linking section in the customer portal.
- Enter your Aadhaar number and verify it with an OTP sent to your registered mobile number.
- Submit the request and wait for confirmation from the insurer.
Offline process:
- Visit the nearest branch of your insurance provider.
- Fill out the Aadhaar linking form and provide a self-attested copy of your Aadhaar card.
- Submit the form along with other KYC documents.
- Receive confirmation after verification.
Challenges faced around Aadhaar linking to health insurance
Some challenges that people face during Aadhaar card linking are:
Security and privacy:
- Data breaches: The centralised Aadhaar database holding private biometric and demographic data is sometimes susceptible to illegal access and data breaches.
- Private information: Aadhaar card linking also raises certain concerns over the confidentiality of medical information. It comes across particularly for diseases like AIDS and tuberculosis, where patients may fear stigma and prejudice if their data is shared.
- Identity theft and misuse: Criminals can open fraudulent policies, file false claims or create phoney identities by taking advantage of Aadhaar linking processes.
Technical issues:
- Inaccurate documentation: Users sometimes upload incorrect documents, low-quality photos or documents in the wrong orientation. This makes systems face challenges in interpreting the data and impede the whole process.
- Biometric error: Fingerprint and iris scans are not always 100% accurate, which might frustrate users and result in multiple unsuccessful tries.
- Unlinked numbers: The OTP verification gets hindered by the fact that many people’s phone numbers are not connected to their Aadhaar cards.
Now that you know all about the Aadhaar card linking aspects, consider doing it soon. If you don’t have medical insurance yet, let us help you secure your finances during medical emergencies. Fill out the form given in this page and get tailored insurance advice. By assessing your circumstances and needs, we’ll present you with the best possible options.
Conclusion
There is no strict compulsion to link your Aadhaar card to your insurance policy. However, doing so can enhance policy security and help maintain accurate records. Since a policy may include multiple plans, including senior citizen health insurance, having updated and verified documentation ensures clarity in your policy details and supports smoother claim processing.
To ensure continuous coverage and peace of mind, it is important to stay informed and keep your records updated. This helps confirm that your policy remains active, compliant and ready to support you when you need it.
FAQs
1. Is KYC required during insurance renewal?
Yes! As per the current updates, health insurance renewal demands KYC verification. According to IRDAI, it is mandatory because it safeguards all your information against fraud and ensures transparency.
2. Can I do KYC without an Aadhaar card?
No. Along with a PAN card and a recent photo, KYC papers include an Aadhaar card, voter ID and utility bills. This documentation serves as proof of address, and an Aadhaar and a passport serve as proof of identification, which is crucial.
3. Is it mandatory to have an Aadhaar card for a health insurance application?
Not really. Although it is a widely used and approved document for KYC purposes, an Aadhaar card is not mandatory during the health insurance application process. As proof of identification and address, you may use additional documents such as a driver's license, passport or voter ID.
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