From today, policyholders will be required to provide Know Your Customer (KYC) documents to purchase all insurance policies. India’s Insurance Regulatory and Development Authority (IRDAI) has mandated her KYC standards for purchases of health, cars, homes, etc. for all new insurance policy purchases. This rule applies to all types of insurance, including life insurance, property and casualty insurance and health insurance.
In the past, sharing KYC documents was an optional choice when purchasing policies. However, starting today, the insurer will have to collect her KYC documents from each customer.
Experts believe the new rules will make the claims process faster and more seamless, as insurers will now have detailed profiles of their customers.
For insurers, KYC details can help improve the accuracy of risk assessment and pricing, potentially reducing the risk of fraudulent claims.
In separate news, Irdai has asked insurers to consider offering discounts on general and health insurance renewals to policyholders who have received three doses of the Covid-19 vaccine.
Insurance regulators have also asked both life and non-life insurers to settle Covid-19-related claims as quickly as possible and reduce paperwork, PTI News Agency reported.
Regulators have also urged insurers to ban specialized hospitals from accepting deposits for COVID-19 hospitalizations, and some hospitals have adopted cashless policies. Instead, he added that he indulged in demanding deposits for coronavirus treatment between the first and second waves.
Insurers should create a war room for Covid-related assistance to all stakeholders to prepare for worst-case scenarios.
Meanwhile, insurers have asked regulators to consider standardizing treatment protocols so that fraud cases are minimized.
In its latest annual report, Irdai said by March 2022 more than 2.25 million Covid death claims had been settled by insurers.
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