Regulator Irdai has constituted a task force to facilitate ease of doing Know Your Customer (KYC) by insurers using Aadhaar, the 12-digit individual identification number.
In a circular, the Insurance Regulatory and Development Authority of India (Irdai) said presently, the UIDAI framework allows insurance companies to indentify the customer by using his/her Aadhaar with consent management.
“In the absence of the Unique Customer Identification in the insurance sector, insurance companies are facing various issues while providing the services and claims apart from ease of onboarding the customers, circumventing possible frauds, etc,” it said.
The 12-member task force is being headed by Member (F&I), Irdai. The panel has been asked to suggest measures to ease of onboarding of customers using Aadhaar, and steps for fraud management at underwriting and claims stages. It has also to suggest measures for improving the traceability of customers/beneficiaries to reduce unclaimed amounts of policyholders.
The 12-point terms of reference also seek panel’s suggestion on linking of ABHA ID (Ayushman Bharat), and facilitating insurers to access annuity life certificates (jeevan pramaan).The task force has been asked to submit its report within one month.