Agents can now onboard new customers even during pandemic or nationwide lockdown easily.
In its latest move, IRDAI has relaxed KYC norms in life, general and health insurance. With this, agents are no longer required to do physical in person verification (IPV) of their customers.
Now, you can simply ask your policyholders to undergo video based identification process (VBIP) through any insurance company and submit necessary documents like PAN card, address proof and bank details verified by ‘Digilocker’.
Your client can store all statutory documents like Aadhar Card, PAN Card, driving license and other such documents in Digilocker app launched by Government of India. While the app retrieves all statutory documents, your customers can upload it manually by clicking picture of documents.
Let us look at how you can use video KYC to on board a new customer:
IRDAI has allowed insurance companies and authorized persons like insurance agents, brokers and insurance sales marketing firms to do video KYC of their customers. Video KYC can be done either online (real time) or face-to-face IPV through video call. Remember that you will have to record this session or video call for authentication.
To begin with, you need to upload KYC documents of your prospects such as photograph, PAN card, address proof and a cancelled cheque on insurer’s video KYC interface. Your customers can upload their eAadhaar card copy as a valid address proof as it masks the first eight digit of their Aadhaar. An unmasked Aadhaar is not a valid KYC proof. You customers can upload all the documents issued by Digilocker.
After uploading these documents, customers need to start real-time video recording using the front camera on their smartphone or the computer’s webcam and display the hard copies of all the required documents. Now, to complete the process, customers have to say ‘Hi’ or their date of birth during the video recording.
Pre-requisites for the video KYC
• Camera enabled device such as mobile, laptop and desktop
• Insurers and authorized person has to complete the KYC in person
• eAadhaar from UIDAI site for Aadhaar based authentication (URL is https://eaadhaar.uidai.gov.in/#/)
• Address proof and ID proof is mandatory if customer wants to do non-aadhaar based KYC
Further, insurance companies will have to ensure that the video is clear and faces of authorized person and prospect are clearly visible. The company will have to track live location of the prospect, time stamp and other necessary details in a safe and secure manner.
Insurers will have to use latest technology like artificial intelligence and face matching to ensure the integrity of the process and confidentiality of the information furnished. Insurers will be held responsible for due diligence of customers.
Recently, IRDAI has done away with requirement of obtaining physical or wet signature of customers to sell non-life insurance policies for insurance agents and intermediaries. Agents and intermediaries can now sell health and motor insurance policies just by asking their customers to click on the confirmation link or validate their consent through OTP.
