IRDA has made linking of Aadhaar number with insurance policies mandatory, and has also asked insurers to comply with the statutory norms.
Soon after the Supreme Court asking banks not to spread panic via text massages on deadlines for linking bank accounts to one’s Aadhaar number, the Insurance Regulatory & Development Authority of India (IRDAI) has now made linking of Aadhaar number with insurance policies mandatory, and has also asked insurers to comply with the statutory norms.
An IRDA circular issued on Wednesday says that the Central Government vide gazette notification dated 1st June 2017 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. “Linkage of Aadhaar number to insurance policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017. These rules have statutory force and, as such, life and general insurers (including standalone health insurers) have to implement them without awaiting further instructions,” the circular states.
Although no deadline has been given by the insurance regulator indicating by when this process has to be completed, but the language of the circular suggests that the linking has to be done as soon as possible. Some insurers also said that this may also delay the payout in some cases where the linking of one’s Aadhaar number with insurance policies can’t be done immediately.
It may be noted that the government has already made Aadhaar mandatory for bank accounts, mobile number as well as various other things. In fact, all bank accounts which are not linked with Aadhaar will become inoperative after 31st December 2017. Aadhaar is now also mandatory for financial transactions of Rs 50,000 and above. Similarly, one has to link one’s Aadhaar number with the mobile number latest by February 6, 2018.