IRDAI mandates KYC starting from January 1, 2023

Published on January 01, 2023
Current Context: Starting January 1, 2023, all new insurance policies—regardless of their premiums—must comply with Know Your Customer (KYC) regulations, according to the Insurance Regulatory and Development Authority of India (IRDAI).
IRDAI mandates KYC starting from January 1, 2023
  • All forms of insurance, including life, general, and health insurance, are subject to this rule.
  • Currently, purchasing non-life or general insurance plans like health insurance, auto insurance, and travel insurance does not require KYC documentation.
  • The time limit will be two years for "low-risk" policyholders and one year for all other customers, including "high-risk" customers, for the insurers to obtain the KYC papers from existing clients.
  • Currently, customers must only present their PAN (Permanent Account Number) card and Aadhar at the time of a health insurance claim, especially if the claim amount exceeds Rs 1 lakh.
  • Until recently, customers who buy new general insurance products have been free to choose whether or not to share their KYC documents.
  • Insurance Regulatory and Development Authority of India (IRDAI):
    • Chairperson – Debasish Panda
    • Headquarters – Hyderabad, Telangana
    • Establishment – 1999 (Incorporated on 1st April 2000)

Question: 

Q.1 Which of these forms of insurance are part of IRDAI’s rule to comply with Know Your Customer (KYC) regulations?
a. Life insurance
b. Health insurance
c. General Insurance
d. All of these

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