Insurance Rule Change: Now it will be mandatory for any insured to give KYC documents to buy the policy. This rule will be applicable from 1 January 2023.
New Rule: Insurance Regulatory and Development Authority of India (IRDAI) has issued a new directive for the people getting insurance. If you do not complete this work then you will not be able to buy life insurance, auto insurance, health insurance or any other type of insurance. IRDAI is going to make this big change from January 1.
IRDAI has said that health, motor, travel and home insurance holders will have to compulsorily submit KYC documents from January 1, 2023. Also, if you have taken a policy, then you can give this document to the institution or bank that issued the policy. The Insurance Regulatory and Development Authority of India has made KYC norms mandatory for the purchase of all new insurance policies.
This rule will apply to all types of insurance
It has been said by the regulatory that this rule will be applied to all who have insurance. No matter how much and how much the insurance premium is, everyone will have to pay insurance. Although this rule was not applicable on KYC document non life insurance or general insurance policy, health insurance, motor insurance and travel insurance.
what is the rule now
Till now this rule was not applicable regarding KYC. However, for claims of more than Rs 1 lakh prize, PAN and Aadhaar card had to be given. Providing this KYC document to the customers is at their discretion. Now under the new rule, KYC documents will be required before making a claim or at the time of purchase.
What will be the benefit to the policy holders
Policy holders have been asked to update KYC as soon as possible. After the implementation of the KYC process, the frauds related to the policy will be less. Also, the claims will be settled as soon as possible. Apart from this, there will also be ease in the claim process or any kind of update of the policy. Experts say that if you have also taken the policy and have not updated the KYC, then get it done as soon as possible.
