Reasons To Link Pan Card & Aadhaar With Your Insurance Policy

by Roma Sharma adviser

As per the directive of the Insurance Regulatory and Development Authority of India (IRDAI), it is mandatory to link your Aadhaar and update your PAN (or submit Form 60) with your insurance policy before 31 March 2018.This is applicable for and General Insurance & Life Insurance Policies (existing as well as new policies) and has the potential to usher several positive changes for the policyholder as well as the insurers.

Here are key reasons as to why you must not think twice before linking your Aadhaar to your insurance policy:

1. To ensure Faster Claims/Benefit Payouts

As per the IRDAI directive, insurance companies are not allowed to make any claim/benefit payouts for existing policies where Aadhaar is not linked.

Claim/benefit payout is done only after verification of various information of the policy holder/claimant. With Aadhaar linked to insurance policies, basic details of the policy holder/claimant and their bank account details will be readily available and shall allow for quick verification and faster processing of claim/benefit payouts.

2. Faster and Hassle free KYC process:

The linking of Aadhaar with your insurance policy will significantly reduce the number of documents required during various transactions with your insurer.

The insurers follow the practice of collecting various information from their customers. This process of verifying the identity of customers is commonly known as ‘Know Your Customer’ (KYC). The linking of Aadhaar with your insurance policies will make the KYC process faster as the basic details, such as name, gender, address etc. could be instantly retrieved through Aadhaar database.

If you want to know other Reasons to link your Aadhaar and update your PAN with your insurance policy you can visit source blog.

Source: https://insurance.exidelife.in/3-reasons-to-link-your-aadhaar-and-update-your-pan-with-your-insurance-policy-423971bb7e0f