KYC NORMS IN TWO WHEELER INSURANCE

Recently due to the high rise in the number of fraud claims and corruption in the insurance process, IRDAI has implemented strict KYC norms for every vehicle by which the owner of the vehicle must submit his identity proof and his address proof in the form of hard copy and must comply with face-to-face identity verification and then they can apply for the insurance. This is also known as e-KYC or CKYC of the customer to verify his identity for further insurance process. Here we are going to look at what are KYC norms and how they impact two-wheeler vehicles.

What Do You Mean By KYC?

KYC stands for “Know Your Customers'' and is mainly used in the verification of the individual by the insurance provider to maintain proper records and avoid future issues. As per the IRDAI, it has been made mandatory for insurance companies to verify their customer’s identity through KYC since 1 January 2023 as an effort to lower fraud and corruption in insurance processes. It also helps insurance providers maintain records of the customer’s name, address, and contact number in case they need to reach them. Insurance provider need to follow the KYC norms to the letter before they can provide any insurance to the customer. KYC (Know Your Customer) verification ensures the authenticity of the bike owner's identity, while bike registration certification confirms the legal ownership and registration details of the vehicle.

What Are The KYC Norms For Two-Wheeler Insurance?

Insurance providers must get proper verification done of the customer before they can provide them with a two-wheeler insurance policy. This has been made mandatory and needs to be followed every time one is getting their insurance or getting it renewed by following the proper KYC norms. Following are the KYC norms one must need to comply with when getting their insurance:

• Provider all Verification Documents: One individual must submit all the proper verification documents such as an Aadhaar card, pan card, ration card, driving license, resident certificate, ECHS card, CGHS card, Kissan passbook, MGNREGA card based on their profession. If one comes as a juridical person then they must submit address proof of their company and offices, authority of the corporation, beneficiary owner ID, and have an authorised representative on their behalf.       

• Get your CKYC Done: One must have their CKYC done, that is they must have a central record of their KYC stored in the central government servers by their consent to maintain proper verification records every time they get their verification done. KYC for two wheeler insurance can be done via physical, video, or OTP-based verification. 

• Give Consent to e-KYC: A person must submit to an e-KYC for the insurance provider to confirm their identity and further process the insurance needs. E- KYC for bike insurance is usually done through a digital medium where one might need to provide their fingerprint or an OTP which comes on their registered mobile number for verification.

• Submit Bike Documents: The owner must submit all the verification documents of the bike such as bike registration number, bike purchasing receipt, previous insurance if any, etc., which may be required for the KYC in motor insurance.  

• Face-to-Face Verification: One must submit to a face-to-face verification of the individual as it’s very crucial in identifying them. One can do physical verification, or video verification for completing the KYC verification for their bike insurance. 

• Self-Declaration: One must provide a self-declaration of all the documents and declare that all the documents are real and if they are found not to be then the individual will be responsible for them. 

Read More | List of Documents Required for New Two Wheeler Purchase

Benefits Of KYC Norms In Two-Wheeler

KYC verification not only helps the insurance provider but also the individual in the long run when he is trying to get an insurance claim. One must always comply with the KYC norms to reduce fraud. The following are the benefits of complying with KYC norms:

• Faster Claim Process: The insurance buying and claiming process becomes faster and more efficient with KYC completed. 

• Easier Renewal Process: One can easily renew two wheeler insurance policy with their insurance provider as they can easily verify your identity and provide you with renewal.

• Fraud Reduction: KYC reduces fraud chances as one can easily track their verification records and report any issues that they feel are not right.

• Risk Management: One can have a better handle on any future risks and manage them on time with KYC norms which lets them manage their verification records and report any irregularities. This is also very beneficial for the insurance provider as it helps them to avoid risky circumstances.

Conclusion

Getting your KYC done properly is very important in keeping your two-wheeler properly insured from any future issues. Insurance providers must comply with the KYC norm for them to provide any insurance to the customer needing one as it ensures proper verification of the customer’s records and helps reduce chances of fraud in the future. One can easily verify their records through KYC physically or by video call or by Aadhaar card-based OTP verification. KYC for bike insurance is mandatory as it is mandated by the IRDAI on 1 January 2023; one must always do his best to comply to avoid any future issues regarding buying or renewing insurance. 

Now one can easily verify their identity and buy the insurance they need from Quickinsure in just a few easy steps by going to Quickinsure website and browse various insurance and select the one that meets their requirement.

FAQs - Frequently Asked Questions

Q1. Is KYC mandatory?

Yes according to IRDAI it has been mandated to comply with KYC norms for one to get their two-wheeler insured.

Q2. How can one complete their KYC?

One can verify their identity through KYC physically, by video call, or by Aadhaar-based OTP-based verification.

Q3. Where can one buy two-wheeler insurance?

Visit the official website of two-wheeler insurance and check various affordable insurance plans and select the one that meets your requirements.

Q4. How much time does it take to get KYC verification?

One can easily get their verification record done in 2-3 minutes with e-KYC at the insurance provider by providing their consent to it.