Linking Aadhaar To Your Insurance Policy- Mandatory
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The insurance regulator, IRDAI, asked the insurers to comply with the statutory norms. It is now mandatory for all insurance policyholders to link it with their Aadhaar card under the prevention of Money Laundering second Amendment Rules, 2017, the insurance regulatory and development authority of India (IRDAI) said.
The government in the month of June had notified the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017 making the PAN/Form 60 and Aadhaar mandatory for availing financial services including insurance and also for linking the existing policies with the same.
The IRDAI said, the rules have the constitutional force and all the life and insurance companies have to implement them without much wait and instructions.
ICICI Lombard MD and CEO Bhargav Dasgupta said it was a progressive and logical step towards creating a joint platform for all financial services and at the same time promote government’s digitization program.
Overall, 24 life insurance companies and 33 general insurers are operating in the country. The companies may have to face some short-term hurdles, but a significant long-term benefit in terms of preventing frauds and streamlining the KYC (know your customer) process is expected.