For the prevention of Money Laundering, Aadhaar Linking with Insurance Policy has been made compulsory by Insurance Regulatory Development Authority (IRDA) on Wednesday (8/11/2017). The regulator has asked insurers to comply with the statutory norms.
The linkage of Aadhaar number with insurance policy has been made necessary under the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017 as per the IRDA statements.
Currently there are total 24 life insurance companies and 33 general insurers (including standalone health insurance firms) providing insurance services to India.
As per the new directions by IRDA, no insurance policy can be sold by insurers without the use of Aadhaar number.
The condition of Aadhaar linking with is applicable to both life and general insurance policies such as health, motor, travel and home insurance.
This is a similar kind of step which Reserve Bank of India (RBI) had earlier taken when the apex bank made compulsory to link Aadhaar number with bank accounts to prevent Money laundering.
