In a move to prevent money laundering, IRDAI has asked policyholders to link Aadhaar with their existing insurance policies. This has come into effect immediately for the existing life and non-life insurance policies.
In a circular, IRDAI said, “The insurance regulator clarified that linkage of Aadhaar number to insurance policies is mandatory under the prevention of money-laundering (maintenance of records) second amendment rules 2017. These rules have statutory force and, as such, life and general insurers (including standalone health insurers) have to implement them without awaiting further instruction.”
Earlier, the ministry had directed financial services industry to link Aadhaar number with the investment accounts before December 31, 2017. In fact, Aadhaar has been made mandatory for most of the financial products with effect from January 1, 2018.
However, the insurance regulator has not given any timeline to comply with the guideline.