From January 1, customers will have to compulsorily provide KYC documents to buy insurance policies. Experts believe that it can make the claim process faster and easier as insurers will have a detailed information of the customers.
New Delhi. The New Year 2023 has brought many changes along with it, the effect of which will be seen on the lives of the people throughout the year. Many rules have changed from banking rules to buying insurance.
To buy an insurance policy from January 1, customers will have to compulsorily provide KYC (Insurance KYC New Rules) documents. The Insurance Regulatory and Development Authority of India (IRDAI) has made KYC norms mandatory for the purchase of all types of life, general and health insurance.
If you are planning to take a new insurance policy in the new year, then apply with KYC documents. In fact till now sharing of KYC documents was a voluntary option while buying an insurance policy. But, from now onwards insurers will have to compulsorily take KYC documents from the customers.
Customers will benefit from the new rule
This rule implemented by the insurance regulator IRDAI will be beneficial for the customers. Experts believe that it can make the claim process faster and easier as insurers will have a detailed information of the customers. On the other hand, for insurance companies, KYC details can help improve the accuracy of risk assessment and pricing of the policyholder, eliminate the possibility of fraudulent claims and make payments to the legal heirs of policyholders easier.
Earlier the rule related to KYC was a voluntary option?
Earlier, KYC document was not mandatory for buying all non life or general insurance. In case of health insurance, if the claim amount is more than Rs 1 lakh, then customers had to provide their PAN number and Aadhaar number. In the new system, this system of KYC
is being transferred at the time of buying insurance instead of claim.
Will the new rule apply to old customers as well?
Now KYC rule has been made mandatory for customers taking new insurance policies. At the same time, for the existing customers, the insurance companies have been instructed to complete the KYC of their customers. You will get its information through SMS and email.
