For the insurance sector that is grappling with the Covid 19 impact, IRDAI previously took a call for the life insurance space and allowed them to issue policy document digitally. And now this time it has permitted both life and general insurers to make use of the Video-Based Identification Process (VBIP) for prospective customers such that their onboarding can be made a simpler exercise via easy Know your customer (KYC) methodology.
In VBIP customer is identified by the insurer's executive who on consent of the prospective customer conducts real-time, audio-video interaction with the customer and obtains information on his or her identity including the requisite documents and verifies them.
IRDAI in a letter to insurance companies said it is suggested to capitalize on the various e-platforms and simply KYC process, making it customer-friendly as well as enhancing ease of doing business. "Hence the insurers may use the 'Video-Based Identification Process (VBIP)' as an electronic medium, which may further enhance the ease of doing KYC," it said, adding such process shall be treated as face-to-face process.
Likewise, insurers may work on developing their app and through an authorized person may carry out real-time VBIP for building, sustaining or verifying account-based relationship with a prospective customer, after his informed approval on the same is received.