Agencies, New Delhi
The insurance sector regulator IRDA on Wednesday said that linkage of the Aadhaar number to insurance policies is mandatory. According to the Insurance Regulatory and Development Authority of India (IRDA), the linkage is mandated under the “Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017.”
“These rules have statutory force and, as such, life and general insurers (including standalone health insurers) have to implement them without awaiting further instructions,” IRDA said in a statement.
The central government notified the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 on June 1, 2017, making Aadhaar and PAN mandatory for availing financial services including insurance and also for linking the existing policies with the same.
Commenting on the communication, MD and CEO of ICICI Lombard 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 digitization 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 insurance firms) operating in the country.