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Home >Money >Personal Finance >Buying insurance just got easier, thanks to eKYC

In a bid to simplify the process of insurance purchase, the Insurance Regulatory and Development Authority of India (Irdai), on Friday, allowed insurance companies to avail the Aadhaar-based authentication services of the Unique Identification Authority of India (UIDAI) to fulfill the Know Your Customer (KYC) norms. However, the regulator has prescribed a list of companies who can undertake eKYC in the coming days. Find the complete list here.

The eKYC option will enable insurers to replace a set of documents such as photograph, identity and address proof with Aadhaar. However, proof of income and medical statement (if required) will still have to be scanned and uploaded. In January last year, Irdai had asked insurers to refrain from using eKYC for authentication and in cases where Aadhaar was shared as proof of identity, insurers were strictly asked to not store the Aadhaar number in any form (physical or digital). This has now been revoked by the regulator.

“This move will definitely ease the purchase process, especially now when the pandemic-driven lockdown has forced companies and people to adopt online facilities. People buying policies will no longer have to upload a bunch of documents to complete the KYC process which means people will not procrastinate buying insurance which is very important in these testing times," said Naval Goel, founder and CEO, PolicyX, an online insurance marketplace.

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