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.

KYC Norms by IRDAI:

  • Determining the true identity of customers
  • Ensuring all contracts are accurate and avoiding any fictitious or anonymous names
  • Identifying new and existing customers accurately
  • Making proper identity verification compulsory by identity proof, address proof and recent photograph
  • Taking official documents and declarations from individuals who cannot go through the verification process due to age, illness or injury
  • Identifying beneficial owners in case of a judicial entity
  • Evaluating documents like legal proof, power and address of the judicial entity

Different KYC Procedures Accepted by IRDAI

As per IRDAI, insurers can perform any of the following KYC procedures for car insurance;

  • Aadhaar-based KYC for online and offline checks
  • Digital KYC for a check on money laundering
  • Video-based KYC for a paperless process
  • KYC identifier procedure that allots a unique number for verification
  • OVD by using valid documents
  • In the form of other documentation like a PAN card or Form 60

Documents Required for KYC Procedures

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;

  • Passport
  • Aadhaar card
  • PAN card
  • Driving licence
  • Voter’s identity card
  • National population register letter confirming details of name and address
  • NREGA card duly signed by a state government officer


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.


FAQs – Frequently Asked Questions.

Let's take a look at some frequent queries on New IRDAI Regulations for KYC in Car Insurance in 2023;

Q. Are these KYC guidelines applicable to all insurers?

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.

Q. Are these Master guidelines for car insurance?

Yes, these new IRDAI regulations are known as Master guidelines for car insurance.

Q. Why are these new regulations been introduced?

IRDAI guidelines are introduced with the aim to curb money laundering and terrorist financing in the insurance business.

Q. The new KYC norms to be followed by all in the insurance sector industry?

Yes, the new KYC norms by IRDAI are to be followed by individuals, judicial entities and all in the insurance sector industry.

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