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ICICI Lombard Expert Blog
 

IRDAI Mandates Linking of Aadhaar with Existing Policies

November 11 2017
Insurance

Insurance policyholders have to now link their existing policies with their unique 12-digit Aadhaar number, the Insurance Regulatory and Development Authority of India (IRDAI) said in its circular. The insurance regulator said that linking existing policies with Aadhaar is a mandatory requirement under the prevention of money laundering rules.

Note that earlier in June 2017, the Central Government had notified the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, making PAN/Form 60 and Aadhaar mandatory for availing financial services including insurance and linking current insurance policies.

In its circular to all general and life insurers, IRDAI said that the rules have statutory force and must be implemented without awaiting further instructions.

Hailing the initiative, insurers feel that though there might be some short-term challenges, including logistics, that need to be addressed, it is a logical step towards building a unified platform for the financial services sector.

They also feel that the move would reap long-term dividends by curbing frauds, expediting claim settlement, and streamlining KYC process. Note that the Reserve Bank of India (RBI) has already clarified about the mandatory requirement of linking bank accounts with Aadhaar.

PAN card holders too need to link their PAN number with Aadhaar for filing IT returns. Telecom companies have also started the process of linking phone numbers with Aadhaar. As of now, there are 24 insurance companies and 33 general insurers operating in India. Policyholders have to link their existing policies with Aadhaar by 31st December 2017.

Source: Live Mint

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