KYC Mandatory for Insurance, know why it is important

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KYC Mandatory for Insurance, know why it is important

Insurance Rules Changed: The new year January 1, 2023, has started. Today, many types of rules have changed. There is a major change in this that, now it will be mandatory for any policyholders in the country to give their KYC documents to that company or bank for taking any type of insurance policy, before buying the policy First these documents will be given compulsorily. Know what changes have been made to the rules.

The new rule which will apply to all types of insurance

The Insurance Regulatory and Development Authority of India (IRDAI) has made KYC all Norms Mandatory for getting all the new insurance policies like auto, health, home, etc. However, all types of insurance will apply this rule. Be it Life, General, or Health Insurance. Till now sharing KYC documents was optional while taking insurance. Now, from today onwards, the insurers will collect KYC documents from their own customers.

why the need?

Why is there a need for such new rule, because, now the claim process will run much faster. Insurers have a detailed profile of their customers, whereas for insurance companies, KYC details can help in improving the risk assessment (KYC details) and pricing.

What is the new order of IRDA?

(IRDA) says that 'they should consider by giving exemption on renewal of general and health insurance policies to those policyholders who have taken all the 3 doses of the covid-19 vaccine'.

Know what else IRDA said

• Some hospitals, despite having a cashless policy, were asking for deposits for treatment in the first and second Covid waves, which was wrong.

• Insurers should create a war room for Covid related assistance to all beneficiaries in the worst-case scenario.

• Insurers asked the regulator to pay attention into standardization of treatment protocols so that all the fraud cases can be reduced.


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