Coronavirus update: With eKYC, now buy insurance or avail services online
Not all insurance companies have been allowed to do the eKYC process. IRDA has given permission to 20 life insurance companies out of total 24 life insurance players
- May 15, 2020,
- Updated May 15, 2020 5:17 PM IST
Taking into account restriction on physical movement of people due to coronavirus pandemic, insurance regulator IRDA has allowed use of eKYC for select insurance companies in their operations. The move will make it possible for insurance companies to service most of customers' requests without any physical contact. "The eKYC is an initiative to make the process of buying the policy quicker and easier by completing the KYC process online without any need for physically meeting the customer," says Rakesh Goyal, Director, Probus Insurance, Insurtech Broking Company.
Enabled by this facility, soon insurance companies will be able to offer new polices to customers and process most of service requests online. "The latest announcement by IRDAI on allowing insurers to offer eKYC will help smoothen the customer journey. It is currently applicable for policy level transactions such as change of address and surrender of policy etc, and is in the process of being implemented for policy purchasing," says Manu Lavanya, Director & Chief Operations Officer, Max Life Insurance.
With the advent of Aadhaar-based OTP confirmation, IRDA has allowed eKYC process for insurance customers. It made the enrolment of new customers and servicing existing customers easy. However, due to privacy-related issues, the Supreme Court order halted the process in 2018. Following this, the union government passed a bill in 2019 giving permission to voluntary use of the Aadhaar for KYC. However, it was yet to be implemented in insurance industry. Given the current lockdown situation in many places and people preferring social distancing, the move by the IRDA to allow eKYC will provide much-needed convenience to both customers and insurers.
Taking into account restriction on physical movement of people due to coronavirus pandemic, insurance regulator IRDA has allowed use of eKYC for select insurance companies in their operations. The move will make it possible for insurance companies to service most of customers' requests without any physical contact. "The eKYC is an initiative to make the process of buying the policy quicker and easier by completing the KYC process online without any need for physically meeting the customer," says Rakesh Goyal, Director, Probus Insurance, Insurtech Broking Company.
Enabled by this facility, soon insurance companies will be able to offer new polices to customers and process most of service requests online. "The latest announcement by IRDAI on allowing insurers to offer eKYC will help smoothen the customer journey. It is currently applicable for policy level transactions such as change of address and surrender of policy etc, and is in the process of being implemented for policy purchasing," says Manu Lavanya, Director & Chief Operations Officer, Max Life Insurance.
With the advent of Aadhaar-based OTP confirmation, IRDA has allowed eKYC process for insurance customers. It made the enrolment of new customers and servicing existing customers easy. However, due to privacy-related issues, the Supreme Court order halted the process in 2018. Following this, the union government passed a bill in 2019 giving permission to voluntary use of the Aadhaar for KYC. However, it was yet to be implemented in insurance industry. Given the current lockdown situation in many places and people preferring social distancing, the move by the IRDA to allow eKYC will provide much-needed convenience to both customers and insurers.