From January 1, 2023, Know Your Customer (KYC) documents will be mandatory for buying new health, motor, travel and home insurance policies. The amount of premium can be anything in this.
From January 1, 2023, Know Your Customer (KYC) documents will be mandatory for buying new health, motor, travel and home insurance policies. Insurance Regulatory and Development Authority of India i.e.
IRDAI has made KYC rules mandatory for buying all new insurance policies from January 1, 2023. The amount of premium can be anything in this. This rule will be applicable to all types of insurance – life, general and health insurance.
What is the rule now?
At present, KYC documents are not mandatory for taking non-life or general insurance policies such as health insurance, auto insurance and travel insurance policies. At present, when you make a claim only in health insurance policy, especially when the value of the claim is more than one lakh rupees, then the customer has to submit PAN card and Aadhaar. Under the new process, now instead of at the time of claim, you will need KYC at the time of purchasing the policy.
Till now it was optional for the customer to share KYC documents while buying a new general insurance policy. From January 1, 2023, it will be mandatory for insurance companies to obtain KYC documents from customers on new non-life insurance policies, irrespective of the premium amount.
What should existing customers do?
For existing customers, the regulator has asked insurers to collect KYC documents within a specified time period. This time limit will be two years for low risk policyholders and one year for high risk customers. Insurance companies will inform customers through SMS or email to submit KYC details on time.
Do note that currently it is not mandatory for existing customers to submit KYC documents for renewing their policies. However, if your policy is due for renewal after January 1, 2023, it may happen that the insurance company asks you to submit photo ID and address proof for KYC.
According to experts, if you have an existing policy and you have not given KYC details to the insurance company, then you should provide the same to the insurance company as soon as possible.
