1. Aadhaar-Insurance Policies Linking: How to do it and what will happen if you don’t do it?

Aadhaar-Insurance Policies Linking: How to do it and what will happen if you don’t do it?

Aadhaar, Insurance Policies Linking: 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.

By: | Published: November 13, 2017 6:11 PM
Aadhaar Insurance Policy Linking, aadhaar, insurance policies, how to link Aadhaar with Insurance Policies, IRDAI, Insurance Regulatory and Development Authority of India, aadhaar linking with insurance, aadhaar insurance linking IRDAI has made it mandatory to link the unique identity number Aadhaar with insurance policies. (Photos from PTI)

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.

  1. R
    Reader
    Nov 13, 2017 at 6:59 pm
    The biometrics-based Aadhaar program is inherently flawed. Biometrics can be easily lifted by external means, there is no need to hack the system. High-resolution cameras can capture your fingerprints and iris information from a distance. Every eye hospital will have iris images of its patients. So another person can CLONE your fingerprints and iris images without your knowledge, and the same can be used for authentication. That is why advanced countries like the US, UK, etc. did not implement such a self-destructive biometrics-based system. If the biometric details of a person are COMPROMISED ONCE, then even a new Aadhaar card will not help the person concerned. This is NOT like blocking an ATM card and taking a new one.
    Reply
    1. R
      Reader
      Nov 13, 2017 at 6:58 pm
      UK’s Biometric ID Database was dismantled. Why the United Kingdom's biometrics-linked National Identi-ty Card project to create a centralized register of sensitive information about residents similar to Aadhaar was scrapped in 2010?? The reasons were the massive threat posed to the privacy of people, the possibility of a surveillance state, the dangers of maintaining such a huge centralized repository of personal information and the purposes it could be used for, the dangers of such a centralized database being hacked, and the unreliability of such large-scale biometric verification processes. The Aadhaar program was designed in 2009 by mainly considering the 'Identi-ty Cards Act 2006' of UK, but the UK stopped that project in 2010, whereas India continued with the biometrics-based program. We must think why the United Kingdom abandoned their project and destroyed the data collected. (Google: 'Identi-ty Cards Act 2006' and 'Identi-ty Documents Act 2010' )
      Reply
      1. R
        Reader
        Nov 13, 2017 at 6:58 pm
        A centralized and inter-linked biometric database like Aadhaar will lead to profiling and self-censorship, endangering freedom. Personal data gathered under the Aadhaar program is prone to misuse and surveillance. Aadhaar project has created a vulnerability to identi-ty fraud, even identi-ty theft. Easy harvesting of biometrics traits and publicly-available Aadhaar numbers increase the risk of impersonation, especially online and banking fraud. Centralized databases can be hacked. Biometrics can be cloned, copied and reused. Thus, BIOMETRICS CAN BE FAKED. High-resolution cameras can capture your fingerprints and iris information from a distance. Every eye hospital will have iris images of its patients. So another person can clone your fingerprints and iris images without your knowledge, and the same can be used for authentication. If the Aadhaar scheme is NOT STOPPED by the Supreme Court, the biometric features of Indians will soon be cloned, misused, and even traded.
        Reply
        1. R
          Reader
          Nov 13, 2017 at 6:57 pm
          The US Social Security Number (SSN) card has NO BIOMETRIC DETAILS, no photograph, no physical description and no birth date. All it does is confirm that a particular number has been issued to a particular name. Instead, a driving license or state ID card is used as an identification for adults. The US government DOES NOT collect the biometric details of its own citizens for the purpose of issuing Social Security Number. The US collects the fingerprints of only those citizens who are involved in any criminal activity (it has nothing to do with SSN), and the citizens of other countries who come to the US.
          Reply
          1. R
            Reader
            Nov 13, 2017 at 6:57 pm
            The Supreme Court is yet to take a decision on the validity of Aadhaar and whether the State can compulsorily link Aadhaar to various programs and all financial transactions. A five-judge Consti-tution bench of the Supreme Court will hear peti-tions related to Aadhaar including those for scrapping the Aadhaar Act, stopping biometric profiling, halting bank and mobile databases seeding with Aadhaar, etc. in the last week of November 2017.
            Reply
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