The Insurance Regulatory and Development Authority (IRDA) said on October 8 that it is mandatory to link Aadhaar to existing and new insurance policies under the prevention of money laundering rules.
Irda said that life and general insurers including standalone health insurers have to link Aadhaar number issued by the Unique Identification Authority of India with insurance policies without awaiting further instructions.
There are 24 life insurance companies and 33 general insurers (including standalone health insurance firms) operating in India.
In June this year, the government had notified the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017, making Aadhaar and PAN/Form 60 mandatory for availing financial services, including insurance and existing policies.
Last month, the Reserve Bank of India had clarified that linking Aadhaar Card with bank accounts is mandatory.
“The linkage of Aadhaar 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, reported The Economic Times.
This comes at a time when the validity of Aadhaar is being argued in the Supreme Court.