After the Aadhaar ID has become an integral part of your life for financial transactions as well as to avail social security benefits, Insurance regulator today mandated its linking with insurance policies. The Insurance Regulatory and Development Authority (Irdai) said, ""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".
The Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 were notified by the government in June this year that mandated PAN or Form 60 and Aadhaar for availing financial services including insurance. In addition existing insurance policyholders had been asked to link their policies with unique Aadhaar ID.
IRDAI in a directive to all life and non-life insurance players in the country asked them to comply with the statutory norms without waiting for any further instructions.
The linkage of insurance policies with Aadhaar will streamline the KYC process as well as aid in preventing frauds in the long run.
With Inputs From PTI