Irda makes Aadhaar mandatory for insurance policies

The Insurance Regulatory and Development Authority of India today said that linkage of 12-digit Aadhaar number to insurance policies mandatory requirement under the prevention of money laundering rules for existing and new policies.

“The Authority clarifies that, linkage of Aadhaar number to Insurance Policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017,” Irda said.

Irda said that life and general insurers including standalone health insurers have to implement link Aadhaar number issued by the Unique Identification Authority of India with insurance policies without awaiting further instructions.

All policyholders will have to link their policies and furnish the Aadhaar number. Insurer expect it to help the sector in reducing frauds and quicker claim settlement.

“The linkage of Aadhar with insurance plans will prove to be beneficial especially during claims settlement for establishing the unique identity of the claimant thus reducing fraudulent claims, and also increase the speed of settlement,” said Jaideep Devare, Managing Director of Mahindra Insurance Brokers Limited.

Last month, the Reserve Bank of India had clarified that linking Aadhaar Card with bank accounts is mandatory. In June, the government had made Aadhaar mandatory for opening bank accounts. Also, for all financial transactions of Rs. 50,000 and above, RBI had said Aadhaar will be mandatory.