As we know that Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory to link the unique identity number Aadhaar with insurance policies. Now, many people are wondering how to to it. Also, people want to know what will happen to their insurance policies if they don’t link it with their Aadhaar number as IRDAI asked insurers to comply with the statutory norms of Aadhaar-insurance policies linking.
According to a report by FE bureau, though the process of linking Aadhaar to policies has not been clarified yet, industry experts say it would be similar to the process done by banks. A policyholder can link Aadhaar either through text messages from mobile phone, online or even by visiting the branch of the insurer.
If both Aadhaar-insurance policies linkings are not done, insurance firms may hold back claims payments.
In a circular, IRDAI has said linkage of Aadhaar number to insurance policies is mandatory under the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017. The regulator’s circular underlines that the rules have statutory force and as such life and general insurers (including standalone health insurers) will have to implement them without awaiting further instructions.
The government in June had notified the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aaadhar and PAN/Form 60 mandatory for availing financial services including insurance and also for linking the existing policies with the same.
In a communication to all life and general insurance companies, IRDAI said the rules have statutory force and as such they have to implement them without awaiting further instructions.
There are 24 life insurance companies and 33 general insurers (including standalone health insurers) operating in the country.