Skip to main content

Aadhaar sufficient for insurance KYC


If you plan to use Aadhaar-based e-KYC when buying insurance, here are some details that you should keep in mind


The Insurance Regulatory and Development Authority of India (Irdai) has said that Aadhaar-based electronic-know your customer (e-KYC) process would be sufficient for the purpose of customer verification. This has come as a part of clarification issued by the insurance regulator on Aadhaar-based e-KYC for insurance companies. It also stated that Aadhaar-based e-KYC can be conducted only with the consent of the customer.


If you plan to use Aadhaar based e-KYC when buying insurance, here are some details that you should keep in mind.


KYC for insurance
For life insurance products, regulatory guidelines mandate that insurers conduct KYC before the sale of the policy in case of direct sales. If the sale is through other channels, such as online, KYC is to be completed within 15 days of the sale of the policy. These practices put the onus on the insurance companies to ensure that these products are not used for money laundering.


For non-life insurance products like motor and health covers, the anti-money laundering guidelines of the insurance regulator mandate insurers to do the KYC at the time of claims. Apart from this, KYC will apply only when the claim settlement is over Rs1 lakh.


The Unique Identification Authority of India (UIDAI) has specific regulations called Aadhaar (Authentication) Regulations, 2016, which explain the ways in which an individual's details can be verified from the Aadhaar database. One such method is verification through a one-time password, which is sent to the individual's registered mobile number. The entity requesting the authentication needs to get the OTP from the consumer and enter in the system to take the process forward. This means the authentication will not take place if the consumer does not share her OTP. This restricts unauthorised access to your demographic information.

Another method is through biometric authentication. In this the consumer has to provide biometric 'proof', say, finger print, at the respective device. The Aadhaar database gives access to the requesting entity only if the biometric matches the information available against the particular Aadhaar number in the database. This too helps prevent unauthorised access to information.


The insurance regulator has also stated that Aadhaar e-KYC can only be conducted with the consumer's permission.


Aadhaar E-KYC for insurance
While Aadhaar-based KYC authentication was allowed, the insurance regulator has now said that this alone will be sufficient to complete the process.


This means that you do not need additional documents as proof for details such as identity, date of birth or address, if you provide Aadhaar. However, if the photograph in your Aadhaar is not clear, or there is a mismatch (for example, in photo, or name), the insurer can ask for additional documents. So, if you plan to use the e-KYC Aadhaar method, ensure that the details in your Aadhaar database are correct and updated, and that the photograph is clear.


A smooth onboarding process can help further expand the use of insurance.



Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Popular posts from this blog

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Bharat Bond ETF

Top SIP Funds Online   The government of India has paved the way for the launch of India's first corporate bond ETF called as Bharat Bond ETF. Edelweiss Mutual Fund will be managing it. The fund is mandated to invest in AAA-rated bonds of select public sector companies (see the table 'List of constituents and their proportions in the portfolio'). The government has a threefold objective behind launching this product. One, to deepen the liquidity of the Indian debt markets and provide a gateway for easy retail participation. Two, to solve investors' dilemma of picking premium bonds. Lastly, to help the underlying government-owned companies raise funding for their operations. But does it make sense for you, the investor, to invest in it? Lets find out. What is the product? As the name suggests, it is an exchange-traded fund which will be listed on a stock exchange from where its units can be bought and sold post launch. It will have two variants - one maturing in 3 ye...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now