IRDA supported usage of Aadhar as E-KYC for confirming details of policy buyers. It gave another explanation regarding this to the insurance companies. It stated that Aadhar can be used as EKYC if the customer agrees. So, before giving Aadhar for EKYC in the future, remember the following details.
KYC for life insurance:
According to the guidelines the sellers of life insurance policy has to take KYC from the customer. While buying directly, customers have to provide the KYC at the time of purchase itself whereas 15 days is the deadline to do so for buying in other means like online, etc.
In case of general insurance:
IRDA clear notifies in rules and regulations that KYC has to be verified for claims of health insurance, motor and house insurance, etc. but this condition is only for claims above 1 lakh rupees.
The Aadhar regulatory authority UIDAI set the means of verifying Aadhar in 2016. According to this, the person will get OTP on the registered mobile number and the verification is done only if the OTP is entered, which means if the customer fails to provide the OTP, the verification is not done so that no other person can give our details.
Based on fingerprints:
The customer has to verify his details in other means also. Providing fingerprints here will verify the person. This also protects you from identity theft.
Only with the consent:
The important thing to note here is that IRDA clearly stated that Aadhar has to be used only with the consent of the customer.
Aadhar alone is enough:
Though Aadhar EKYC has been allowed for some time now, the latest direction from IRDA is that Aadhar is alone sufficient to buy an insurance policy and it is enough to complete the policy procedure.
If photo is not clear?
A person can submit the Aadhar alone for policy purchase and no need to provide separate proofs for date of birth, ID, address, etc. however, if the photo on the Aadhar is not clear or there is spelling mistake in the name, you may be asked for another identity card. If you want to use Aadhar as EKYC, better to make sure that all the details on it are correct.