KYC mandatory for Insurance Policy: To protect customers from fraud, the Insurance Regulatory and Development Authority of India has tightened the insurance policy purchasing rules.
If you are planning to buy an insurance policy, then you should know the new rules. Insurance Regulatory and Development Authority of India has tightened insurance policy purchasing rules to protect customers from fraud. The change in rules is likely to affect the premium rates. At the same time, the insurance regulator has told the health insurance companies that they can consider giving exemption in policy renewal to the customers who have got 3 covid vaccines.
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KYC is necessary to buy the policy
The Insurance Regulatory and Development Authority of India (IRDAI) has said that KVC has been made mandatory for buying all types of insurance policies. Guidelines have been issued to the insurers in this regard. The new rules will be effective from January 1, 2023. The insurance regulator has said that the new rules will apply to travel insurance policies including health policy, life insurance, auto insurance, home insurance.
Changes to prevent fraud
The insurance regulator said that from next month it will be mandatory to submit KYC (Know Your Customer) details to buy any insurance policy. Insurers will now definitely obtain KYC documents from the policyholders before selling the policy. The aim of the insurance regulator is to tighten the rules to prevent fraud. At the same time, it is being said that insurance companies will charge customers for the KYC process, due to which the amount of insurance premium can be expensive.
Appeal for exemption on health insurance policy renewal
The insurance regulator has asked both life insurance and non-life insurance companies to settle COVID-related claims as soon as possible and reduce paperwork with flexibility. So that the policy holders can get relief. Along with this, those policyholders have been asked to consider giving exemption on renewal of health insurance policies who have taken all three doses of COVID-19 vaccine.
