Reportedly, linking of Aadhaar number with insurance policies latest by 31st Dec is now become mandatory. Read to know about the consequences if you fail to do so.
The Insurance Regulatory and Development Authority of India (IRDA) has now issued a deadline of 31st Dec, 2017 to link the Aadhaar number with individual insurance policies. With mere two months of gap, many are zapped, thinking about the consequences if one abstains or fails to do so within the deadline.
The standalone health insurers, general insurers as well as life insurers have welcomed the Regulator’s new initiative of linking the 12-digit unique identification number issued by the Indian Government.
Failing to link the Aadhaar number with the individual insurance policies would not lead to discontinuation of the policy. The policy will continue if the Know Your Customer (KYC) documents are provided at the renewal stage.
Things may worsen in case any health claim has been to be settled during this period. The claimant has to submit KYC documents i.e. PAN card and Aadhaar number, irrelevant of the claim amount.
This initiative introduced by the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 will lead to reduction in fraudulent cases and a hassle-free claim settlement process. Linking of Aadhaar number with insurance policies will eradicate the need of multiple KYC's.
This streamlined process can be done easily via text messages or by directly visiting the insurance company's office in person.
Recommended Read: How to Link Aadhar With Life Insurance?