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Linking Aadhaar with insurance policies mandatory: Irdai

In a communication to all life and general insurance companies, Irdai said the rules have "statutory force" and as such they have to implement them without awaiting further instructions.

Press Trust of India  |  New Delhi 

There are about 330 million PAN cards, while Aadhaar has been issued to about 1150 million people

Regulator today said linkage of the unique identity number with policies is mandatory and asked insurers to comply with the statutory norms.

"The Authority clarifies that, linkage of number to Policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017," the Regulatory and Development Authority (Irdai) said.

The government in June had notified the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aaadhar and PAN/Form 60 mandatory for availing financial services including insurance and also for linking the existing policies with the same.

In a communication to all life and general insurance companies, said the rules have "statutory force" and as such they have to implement them without awaiting further instructions.

Commenting on the communication, MD and CEO of Bhargav Dasgupta said it is a progressive and logical step towards creating a unified platform for financial services and at the same time promote the government's digitisation agenda.

"While there may be some short term challenges to overcome, we see significant long term benefits in terms of preventing frauds and streamlining the KYC process," he said.

There are 24 life insurance companies and 33 general insurers (including standalone health insurers) operating in the country.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, November 08 2017. 22:33 IST
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