Linking all insurance policies with Aadhaar mandatory: IRDA
New Delhi : The insurance sector regulator IRDA on Wednesday said that linkage of the Aadhaar number to insurance policies is mandatory and asked insurers to comply with the statutory norms.
"Linkage of Aadhaar number to insurance policies is mandatory under the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017,” the IRDA said.
"These rules have statutory force and, as such, life and general insurers (including standalone health insurers) have to implement them without awaiting further instructions," IRDA said in a statement.
In June, the government had issued a notification mentioning the making of Aaadhar and PAN/Form 60 mandatory for availing financial services including insurance and also for linking the existing policies with the same.
Life insurers are already barred from settling claims in cash. Claim amounts are transferred only to bank accounts, which now have to be linked to Aadhaar. Many insurers already ask for PAN for all life policies although the regulator requires them for cash premium above Rs 50,000
The process of linking Aadhaar number with the policies will be similar as adopted by the banks. This means that insurers would be able to link the numbers either through text messages or online or by visiting the branch.
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