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Being the insurance regulator IRDAI keeps updating rules for different parameters to insurance for a clearer up-to-date and seamless experience. As per the new IRDAI guidelines, all car insurance policy have to follow KYC – Know your customer procedures in the form of digital, aadhaar-based, video and C-KYC mandatorily with an effective date of 1st January 2023.
Due to a high increase in insurance related frauds and money laundering, IRDAI has laid separate KYC norms for insurance. It helps monitor the system better and reduces the risk for insurers.
As per IRDAI, insurers can perform any of the following KYC procedures for car insurance;
Having known the different procedures for KYC accepted by the IRDAI let’s take a look at the list of documentation required for KYC for car insurance as per the new regulations;
IRDAI keeps updating rules to maintain and secure the insurance sector industry. These new KYC guidelines have been introduced with the aim to curb money laundering in the insurance business. So, as insurers or as policyholders we need to make sure these regulations are followed dutifully.
Let's take a look at some frequent queries on New IRDAI Regulations for KYC in Car Insurance in 2023;
Yes, the new KYC guidelines are applicable to all insurers and policyholders as well. Except for re-insurance business performed by an Indian insurance company or foreign companies in India.
Yes, these new IRDAI regulations are known as Master guidelines for car insurance.
IRDAI guidelines are introduced with the aim to curb money laundering and terrorist financing in the insurance business.
Yes, the new KYC norms by IRDAI are to be followed by individuals, judicial entities and all in the insurance sector industry.