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Life and general insurers accept Aadhaar cards as KYC documents when clients offer them on a voluntary basis. Insurers do not demand Aadhaar and PAN or Form 60 in a mandatory way from the proposer or policyholder. Insurers accept physical copies, e-Aadhaar, masked Aadhaar, and Offline Aadhaar XML. Insurers never use UIDAI e-KYC or Yes or No authentication facilities. Insurers mask the first eight digits of the Aadhaar number. Insurers store only the last four digits of the Aadhaar number in physical or digital forms. The authority withdraws the earlier circular on Aadhaar based e-KYC.
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[Image omitted. See the official document.]
Ref: IRDAI/SDD/CIR/MISC/020/01/2019
29th January, 2019
All Life and General Insurers (Including Standalone Health Insurers)
Sub: Allowing Aadhaar Card as one of the acceptable documents for KYC- under certain conditions.
Reference is drawn to the following circulars of the Authority relating to Prevention of Money-laundering (Maintenance of Records) Second and Seventh Amendment Rules, 2017 :
Hon'ble Supreme Court of India in Writ Petition (Civil) No. 494/2012 vide judgement dated 26th September, 2018 held the amendment to Rule 9 (making Aadhaar and PAN/form 60 mandatory for availing financial services including insurance) of the PML (Maintenance of Records) Rule 2005, by PML Amendment Rules, 2017 to be unconstitutional.
Thereafter, UIDAI vide circular F.No. 13012/171/2018/Legal/UIDAl/114 dated 23rd October, 2018 based on the opinion of the Learned Attorney General of India has clarified that physical copy of the Aadhaar card as well as e-Aadhaar, masked Aadhaar and offline electronic xml provided by UIDAI (if offered voluntarily by the client) can be accepted as an Officially Valid Documents for KYC purpose.
सर्वे नं. 115/1, फाइनेंशियल डिस्ट्रिक्ट, नानकरामगुडा, हैदराबाद-500 032, भारत (Q) : +91-40-2020 4000,फैक्स : +91-40-2020 4555 वेबसाइट : www.irdai.gov.in
Survey No. 115/1, Financial District, Nanakramguda, Hyderabad-500 032, India (Q) : +91-40-2020 4000, Fax : +91-40-2020 4555 Website : www.irdai.gov.in
[Image omitted. See the official document.]
In view of the above, the insurers are advised not to mandatorily seek Aadhaar and PAN/form 60 from the proposer/policyholder as part of KYC. However, insurers may accept Aadhaar card as one of the documents for establishing identity and/or address of the proposer/policyholder for KYC purpose subject to the following conditions:
It is emphasized once again that it shall be the responsibility of the insurers that the above instructions are scrupulously followed.
Accordingly, Authority's circular ref: IRDA/SDD/CIR/MISC/204/08/2017 dated 31st August, 2017 relating to 'Aadhaar based e-KYC' is withdrawn.
[Image omitted. See the official document.]
Member (Life)
सर्वे नं. 115/1, फाइनेंशियल डिस्ट्रिक्ट, नानकरामगुडा, हैदराबाद-500 032, भारत (Q) : +91-40-2020 4000,फैक्स : +91-40-2020 4555 वेबसाइट : www.irdai.gov.in
Survey No. 115/1, Financial District, Nanakramguda, Hyderabad-500 032, India (Q) : +91-40-2020 4000, Fax : +91-40-2020 4555 Website : www.irdai.gov.in
