Aadhar Card Linking to Insurance Policies Extended to 31st March

Being a part of the financial services industry, you must be completely aware of the fact that all Insurance Companies are insisting the linkage of Aadhar Card to the insurance policies of your clients. Being the point of connection, for both the insurer and the insured, it is your duty to initiate the same.

Thus, today we will talk about the importance, benefits and the process of Aadhar Card linkage to your client’s insurance policies.

Aadhar Card

Aadhar Card is a very important document in the country today. The scheme was started by the government in 2016 in co-ordination with the UIDAI. The Aadhar card comes with a 12-digit number which is a unique number in the country. While registering for the Aadhar card, biometrics are taken which adds to its uniqueness. The Aadhar card is a very important identity document in the country. The importance of the card has increased further as the government has decided to link the card to various other documents. Some of the essential ones are:

-PAN Card

-Bank Account

-Mutual Fund Folio

– Insurance Policies

– Post Office Schemes

– Mobile Number, etc.

The Government had earlier fixed 31st December, 2017 as the last date to link Aadhar card to the above documents. However, following the judgment of the Supreme Court, the deadline has been extended to 31st March 2018. This gives more time to the citizens.

Linking Aadhar to Insurance

The Government has made it mandatory to link all insurance policies with the Aadhar Card till March 31st, 2018. Under the Prevention of Money Laundering Act, this move has been taken by the Government. The government expects to drastically bring down money laundering and other illegal financial activities in the country. This linking will also make things easier for the insured as he will get the benefits easily.

The linking has been made mandatory for all insurance policies with both the public and private sector companies. A unified platform will be made available with this move and the government will move a step towards digitizing the economy. The process will have long term positive impacts on streamlining the processes and preventing fake transactions.

Advantages of Linking Aadhar Card

The IRDAI has made it compulsory to link Aadhar Card to all insurance policies and there are many benefits from this move. The first is that the system will become more transparent as the companies will not have to spend time and money on identification of the insured and the beneficiary. The implementation of the schemes launched by the government will become easier as fake accounts will no longer exist. It is not new in India that fake accounts have been opened using fake signatures and documents.

To sum up, linking Aadhar Card to Insurance policies has the following benefits:

-This will prevent misuse and money laundering

– Better experience for customers with faster claims settlement

-A hassle free and simple process for insurance companies at the back end

-All financial services will be integrated into one platform making it very simple for the customers

How to Link Aadhar Card

Online Linking

Insurance companies like SBI, LIC, ICICI, HDFC and Max Life have given the facility to its clients to link Aadhar card online.

-Go to the Login Page to access your account or some websites have the option to Link Aadhar on their home page

-Fill in all the required details like Aadhar Number, PAN etc.

– Click on Submit

-An OTP is sent on your registered mobile number which you should submit on the website

-Aadhar card will be successfully linked

Offline Linking

It is not tough to link Aadhar to insurance policies if the option is not available online. All that needs to be done is:

– Contact your agent or visit the nearest office of the insurer

– Submit a self-attested photocopy of the Aadhar Card. Both sides of the card must be there in the photocopy

– Submit the paper to the office in charge and the policy will get linked

Time will only tell if linking Aadhar Card to insurance and other documents will have benefits or not. However, the process to do so is simple and if the government achieves to do what it intends to, it will be a great move for the economy.

Read more on how to open an eInsurance account

Read more about budget 2018 impact on insurance industry

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