New Insurance Rule: KYC details are voluntary while buying a non-life insurance policy. However, KYC documents such as address and identity proof is mandatory for insurance claims of Rs 1 lakh or more. Now the regulator is planning to make KYC details mandatory while buying the policy.
New Delhi. The Insurance Regulatory and Development Authority of India (IRDAI) is planning to make KYC details mandatory for insurers from 1 November. Under this, KYC documents will have to be submitted compulsorily while claiming for insurance. With this proposal of IRDAI, there will not be much problems in the claim process.
At present, KYC details are voluntary while buying non-life insurance policies. However, KYC documents such as address and identity proof is mandatory for insurance claims of Rs 1 lakh or more. But now, the regulator is planning to make KYC details mandatory while buying the policy. These rules related to KYC will be mandatory for both new and existing customers.
Benefits of
getting KYC done: The KYC process will enable the centralized policy database to be availed and this will help in maintaining the policy records on the Bima Sugam portal. Policy holders will be able to create an e-insurance account on this portal, where they can view the details related to their policy, as well as make insurance claims easily.
Abhishek Bondia, director, SecureNow, said, “Existing policyholders will have to complete the KYC process within the stipulated period. This period will be two years for low risk customers and one year for high risk customers. At the same time, the KYC process will ensure that the insurance amount is not paid to any third party. All payments to be made to the nominees and legal heirs of the policyholders.
KYC Compliance Terms
According to experts, if your policy is due for renewal after November 1, you will need to provide photo identity and proof of address to your insurer for KYC compliance. Also, if you have recently bought a policy, you will need to submit KYC documents with the insurer.
