Now you can on board new clients through Aadhaar.
In a circular, IRDAI has said that Aadhaar is sufficient for KYC Verification. However, the insurance companies will have to obtain consent from policyholders to undertake eKYC through Aadhaar.
So far, Aadhaar is just one of the documents to carry out KYC.
In addition, the insurance regulator has said that if insurers find out any material difference in name or photograph on Aadhaar, the insurance companies will have to carry out additional due diligence and maintain a separate record of such policyholders.
Currently, policyholders need PAN card, an address proof and a cancelled cheque to undergo KYC. Aadhaar card holders undergo In Person Verification (IPV) by submitting all these documents. Ideally, there is no need to do KYC and IPV again.
Though the government has launched central KYC last year to do away with the requirement of doing multiple KYCs, it is expected to take time to get fully functional.