Home / News / India /  Buying an insurance policy will be easier as govt allows use of Aadhaar for KYC

NEW DELHI : The government has now allowed insurance companies to collect Aadhaar card details under the Prevention of Money Laundering Act, subject to compliance with standard security and privacy measures as per the Aadhaar Act. The move is aimed at checking laundering of funds into insurance companies and shell companies.

The finance ministry has released a list of 29 insurance companies like Bajaj Allianz Life Insurance, Bharti AXA Life Insurance, ICICI Prudential Life Insurance, HDFC Life Insurance, HDFC Ergo General Insurance and SBI General Insurance which can collect Aadhaar information from customers for KYC purposes.

Finance Secretary Ajay Bhushan Pandey said that the two notifications issued in this regard by the Ministry of Finance “to allow these entities to use Aadhaar authentication services under Aadhaar Act with necessary standard security and privacy measures would help these entities to perform in real time, do e-KYC and would also reduce their cost of transaction".

“This would also be beneficial to the customers or the investors, especially the small and retail investors, as they need not submit physical papers or documents for KYC," Pandey, who is also the Revenue Secretary, said.

This would ease their KYC process and would reduce cost and time besides preventing money laundering activities.

Other entities given this permission include Max Life Insurance, PNB Metlife India Insurance, SBI Life Insurance Future Generali India, Reliance Nippon Life Insurance, Apollo Munich Health Insurance, Manipal Cigna Health Insurance, Religare Health Insurance, NSE Data and Analytics, CAMS Investor Services, Computer Age Management Services, and Link Intime India.

An official said use of Aadhaar authentication service by these entities is voluntary and if an investor gives Permanent Account Number (PAN), he or she does not need to go for Aadhaar authentication.

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