Insurance Regulatory and Development Authority (IRDA) has made it mandatory to link the base with insurance policies. The regulator has asked insurance companies to comply with this statutory regulations.
IRDA said in the statement that it is mandatory to add the base number to insurance policies under the Prevention of Money Laundering (Record Maintenance) Second Amendment Rule, 2017. Irda said in the information sent to all life insurance and general insurance companies that they have to implement the implementation without delay.
The government had issued a notification in June that it was mandatory to add the base and PAN number to avail any financial services including insurance. It is also mandatory to link the already existing insurance policy with the base.
On this move of IRDA, Bhargava Dasgupta, MD & CEO of ICICI Lombard General Insurance has said that it is a progressive and rational step towards building an integrated platform for financial services. It also encourages the digitization agenda of the government. In India, 24 life insurance companies and 33 general insurance companies are in operation who are responsible for it.
While making the announcement, the regulator referred to Central government's gazette notification dated Ist June, 2017, wherein it notified the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 and made Aadhaar and PAN/Form 60 mandatory for availing financial services including insurance and also for linking the existing policies with the same.
It further said, "The Authority clarifies that linkage of Aadhaar number to Insurance Policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017."