Aadhaar now mandatory for insurance policies

Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory to link existing policies with Aadhaar. Individuals will also need their Aadhaar number for buying a new policy.

The central government on June 1, 2017 notified the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aaadhar and PAN/Form 60 mandatory for availing financial services including insurance and also for linking the existing policies with the same.

“These rules have statutory force and, as such, life and general lnsurers (including standalone heallh insurers) have to implement them without awaiting further instructions,” said IRDAI.

Earlier, IRDAI had said that authentication of policyholders or clients by insurance companies using Aadhaar number will be on a voluntary basis and with their consent.

The move comes after the Reserve Bank of India (RBI) had said that bank accounts must be linked to Aadhaar.

Though the Supreme Court said that Aadhaar is not illegal and privacy not absolute, a final judgment on the need to make Aadhaar mandatory is still awaited. So if government has the final say, then bank accounts that are not linked to Aadhaar will become in operational from January 1, 2018.