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Haripad: The Insurance Regulatory and Development Authority of India (IRDAI) has made Know Your Customer (KYC) documents mandatory for availing new health, motor insurance policies from January 1, 2023.
Till now, submission of KYC documents had been an optional choice for customers. However, with the new move, Aadhaar card, PAN card and photo of the customer have become mandatory for the purchase of new insurance policies.
Although KYC documents are required for renewal of existing policies, customers will be provided sufficient time to intimate the details.
The time limit will be two years for low-risk policyholders and one year for others, including high-risk customers.
The move is aimed at improving the accuracy of risk assessment and reducing the risk of fraudulent claims.
The new direction is applicable for all types of insurance, including travel, life and home insurance.
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