Reportedly, Central Government has mandated to link Aadhaar number from now onwards, to buy insurance. Read further to know about this new initiative by the Regulator.
The Insurance Regulatory and Development Authority of India (IRDA) has asked all insurance companies to link the 12-digit Aadhaar number and PAN/ Form 60 to individual insurance policies. This initiative is being implemented under the Prevention of Money- laundering (Maintenance of Records) Second Amendment Rules, 2017 and will come into force on immediate grounds.
Aadhaar is a widely accepted 12-digit unique identification number issued by the Indian Government to its citizens. Furnishing of this unique number will help the policy holders as well as the insurers during claim settlements. The linkage will further make the claim process smoother due to reduced fraudulent cases and will streamline the KYC process.
IRDA has instructed all the life insurers, general insurers and the standalone health insurers to start linking Aadhaar number with the existing and new insurance policies on immediate effect.
Apparently, the linkage of Aadhaar can be done via text messages or by visiting the insurer branches in person. As per IRDA, this will promote digitalization and also create a unified stage for the insurance and financial sector.
Fortunately, this new norm that many are still unaware about, will bring digital revolution and will minimize the hassles during claim settlement.