Insurer PAN to be made mandatory

NEW DELHI: Concerned that terrorists and insurgents may be parking their funds in high-value insurance policies, security agencies have advised that it be made mandatory for the insured to quote a PAN number while taking an insurance policy.

According to a senior MHA official, security agencies had scrutinised some high-value insurance policies, often running into crores and involving a one-time premium, and traced them to suspicious clients. Even a look at the money trail of terrorist and insurgent outfits, including those active in northeast, revealed parking of huge money in insurance policies. As this translated into huge business for the insurance companies, both in the public and private sector, no questions were asked while issuing the high-value policies.

Keen on preventing subversive elements from misusing lax insurance policy registration norms to invest terror/insurgency funds, MHA is now insisting on all insurance companies following a proper KYC (know-your-customer) drill. This would involve verifying the identity and address of the policy holders and also making it mandatory for PAN no to be quoted in all insurance policies.