KYC Mandatory For Insurance! Now it is mandatory to give KYC documents on buying any insurance, know why it is important

From today it will be mandatory for insurers to provide KYC documents for taking any type of insurance. Although it was optional till now, which has now been made mandatory.

Insurance Rules Changed: The new year i.e. January 1, 2023 has started. From today, many types of rules have changed. There is a major and major change in this that, now it will be mandatory for any policy holders in the country to give their KYC documents to that company or bank for taking any type of insurance policy, that is, before buying the policy First these documents will have to be given compulsorily. Know what changes have been made in the rules.

The new rule applies to all types of insurance

It may be known that in this regard, the Insurance Regulatory and Development Authority of India (IRDAI) has made KYC Norms Mandatory for buying all new insurance policies like health, auto, home etc. However, this rule will apply to all types of insurance. Be it Life, General and Health Insurance. Till now sharing of KYC documents was an optional while taking insurance. However, from today onwards, insurers will have to collect KYC documents from their respective customers.

Why the need 

Why is there a need for this new rule, because of this, now the claim process will be much faster. Insurers have a detailed profile of customers, wherein for insurance companies, KYC details can help in improving the accuracy of risk assessment (KYC Deatils) and pricing. This can reduce the risk of fraud claims.

What is the new order of IRDA 

At the same time, the Insurance Regulatory and Development Authority (IRDA) says that they should consider giving exemption on renewal of general and health insurance policies to those policyholders who have taken 3 doses of Kovid-19 vaccine. The insurance regulator has asked both life and non-life insurance companies to settle Covid-19 related claims at the earliest.

Know at a glance what else IRDA said 

• The insurance regulator urged insurers to ensure that listed hospitals are prohibited from taking deposits for Covid hospitalization.
• Some hospitals, despite having a cashless policy, were asking for deposits for treatment in the first and second Covid wave, which was wrong.
• Insurers should create a war room for Covid related assistance to all beneficiaries for the worst case scenario.
• The insurance regulator asked the companies to report the data in a prescribed format, so that there is no discrepancy.
• Insurers have asked the regulator to look into standardization of treatment protocols, so that fraud cases can be reduced.