Nov 9: The Insurance Regulatory and Development Authority (IRDAI), the insurance sector regulator, has said that linking unique identity number (UID) or Aadhaar with insurance policies is mandatory.
Directing insurers to follow the statutory norms, IRDAI said linkage of Aadhaar number to Insurance Policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017.
In June last, the Union government had brought out a notification that made Aaadhar and PAN/Form 60 mandatory for availing financial services including insurance. By enacting the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017 it had called for linking the existing policies too. India currently has a total of 24 life insurance companies and 33 general insurers.
The regulator has gone ahead with the plan, by issuing a communication to all life and general insurance companies, stating that the rules have “statutory force” and they have to implement them without awaiting further instructions.
The move is being seen by insurance players as a progressive and logical step in the bid to establish a unified platform for financial services. They think that the move would also help promote the government’s digitalisation programme.