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IRDAI has constituted a task force to simplify KYC norms in the Rs.60 lakh crore insurance industry. Among other things, the task force will suggest measures to allow agents and other intermediaries to facilitate both eKYC and physical KYC to onboard new clients.
In a circular, IRDAI has acknowledged that non-Aadhaar KYC has become difficult. “Presently, the UIDAI framework allows insurance companies to identify the customer by using his/her Aadhaar with consent management. In the absence of Unique Customer Identification in the insurance sector, insurance companies are facing various issues while providing the services and claims apart from ease of onboarding the customers, circumventing possible frauds etc.”
The insurance regulator has constituted a 12-member task force headed by IRDAI Chairperson, Debashish Panda.
Here are some key areas where the task force will give its recommendations:
- Facilitate ease of onboarding new clients using Aadhaar
- Check fraud management at underwriting and claims using Aadhaar
- Improve traceability of customers and reduce unclaimed amount of policyholders
- Facilitate access to National Death Registry using Aadhaar, Jeevan Pramaan, bank account of policyholders
- Facilitate payment of policyholders through Aadhaar Payment Bridge
The committee will submit its recommendation within a month.
