Good News: IRDAI allows video-based KYC for new customers

IRDAI allows video-based KYC
IRDAI allows video-based KYC

If you are hesitant to visit an insurance provider to complete your KYC, there is good news for you. Regulator IRDAI is now permitting the option of Video KYC on new insurance policies for the onboarding customers. This facility is provided keeping the current pandemic situation in mind.

IRDAI allows video-based KYC

Banking regulator the Reserve Bank of India has already updated the Know Your Customer (KYC) norms, permitting the banks and other lending institutions regulated by it to opt for video-based customer identification process.

In a letter issued to the insurers, Irdai stated that in a bid to simplify the process of KYC, it is advisable to leverage the several electronic platforms and make it customer friendly and level-up ease of doing business.

“Hence the insurers may use the ‘Video-Based Identification Process (VBIP)’ as an electronic medium, which may further enhance the ease of doing KYC,” it said, adding that such processes shall be counted as face-to-face process.

Also Read:- IRDAI direct insurers to clarify insurance cover on disability, HIV & mental illness

The Insurance Regulatory and Development Authority of India (Irdai) added that insurers may create their own application and perform live VBIP, which can be carried out by an authorised person of the insurer, for establishment, continuation or verification of an account-based relationship with an individual customer, after obtaining his informed consent.

Besides, it said that the authorised person of the insurer performing VBIP for KYC shall keep a video record as well as capture live photograph of the customer present during the identification and collect the identification information.

“The authorised person of the insurer shall ensure that the video is clear and the customer in the video shall be easily recognisable and shall not be covering their face in any manner,” it said.

Also, the regulator said that it should be ensured that the photograph of the customer in the Aadhaar matches with the customer undertaking the VBIP and the identification in Aadhaar shall match with the details given by the customer.

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