as government has announced the timeline to link Aadhaar details with financial
services from 31st December 2017 to 31st March 2018
needs to mandatory do it before the end of this financial year. Earlier the
Insurance Regulatory and Development Authority of India (Irdai) had announced
to link Aadhaar with insurance policies. There are several concerns raised by
many people on compulsory linkage of Aadhar with financial products. But,
advantages outweigh the apprehensions as policyholders might reap the final
benefits of this exercise.
it only for insurance policies?
in the recent past we have seen government making it mandatory for consumers to
link many important services with Aadhaar. Customers might be getting frequent
reminders to link their banks account, mutual fund and mobile number with
Aadhaar. Recently, the Reserve Bank of India also clarified that it is
mandatory to link bank accounts with Aadhaar. With this linking of Aadhaar,
fake claims arising in insurance sector might come down which could eventually
benefit policyholder. Even the government claims to have removed millions of
fake beneficiaries for government benefits by Aadhaar linking. As reported in
various media, over 22-23 million fake ration cards have been scrapped,
potentially saving the government Rs14,000 crore in food subsidy every year.
While three states discovered that about 2.7 lakh fake students were availing
the mid-day meal (MDM) scheme due to the Aadhaar.
of linking Aadhaar with insurance policies and its advantages
regulator had stated that linking of Aadhaar number to insurance policies is
mandatory under the Prevention of Money-laundering (Maintenance of Records)
Second Amendment Rules, 2017. As said earlier linking of Aadhaar with insurance
policies has numerous benefits like cleaning out duplications and fake policies
and provides accurate data. It is very important to note that, insurance frauds
have cost industry over Rs 10,000 crore annually, suggest the figures. Linking
of Aadhaar with financial services will help eradicate fake accounts and fake
Indian insurance industry there are many fraudulent activities like accounts
opened with fake signatures or duplications in PAN. Due to the surge in such
activities there are many areas in state like Gujarat, Karnataka and Haryana
where insurance companies take utmost care while giving a policy. With this
linking of Aadhaar, such duplicity will reduce, and fake claims might come down
for industry which could eventually benefit policyholder. Apart from this
issue, many times insurance companies face problems while paying out the claims
or when the policy gets matured. Policyholder sometimes forgets to update the
change in address or bank accounts which would result is non-payment of claims.
This exercise will ensure that, maturity proceeds are directly transferred to
the banks account of the policyholder when policy gets matured.
obstacles in the process
the flip side, there are many arguments that, linking of such services will
lead to having all information on an individual at a single place, which could
make surveillance easier and increase the risks if this information is hacked.
However, with direction from the regulator, policyholders needs to complete the
procedure in time as insurance companies will require Aadhaar linkage, during
renewals or during claims registrations. The insurer can also keep in
waiting the claim payments until the linkage and authentication has been
completed. So, it is advised for policyholders to complete the process at the
earliest to avoid any future difficulties while getting the maturity proceeds.
Aadhaar linking is applicable for all the life as well as non-life insurance
companies. This move will create a combined platform for all the financial
services and also strengthen government’s digitization initiative. Though, the
procedure may be tiring initially, but in the long run will provide
unprecedented benefits by preventing fraudulent acts and streamlining all the
to link Aadhaar with your insurance policies
discussed above in the article, linking insurance policy with the 12-digit
unique identification number is compulsory now. The insurance regulator has
made Aadhaar and PAN/Form 60 linking mandatory for availing any financial
service. Irdai has directed all the insurance companies to link the new and
existing insurance policies to the Aadhar number, without any delay. Failing to
complete the procedure may propel insures to hold the claim until the linking
is complete. However still there is no clarity on this issue. There are three
ways to link Aadhar with an insurance including online, offline and text
through online mode
is most convenient and easy way to link your insurance policy with Aadhaar.
1: For registered users (who are paying premiums online) they should visit the
insurance company’s portal.
2: Give the exact Aadhaar details as mentioned by the insurance companies,
re-check the number and submit
3: One time password will be generated on the Aadhar registered mobile number,
put the password and Aadhar will be linked with the policy
for policyholders who are not registered, they just need to give extra details
like PAN, date of birth, e-mail id, policy number and Aadhaar number in the
Step 2. All the other steps remains same.
through offline mode
any reason if you can do online linking, here how you can link your policies
offline. One needs to have, Aadhaar or PAN mandate form, self-attested copy of
Aadhaar card and PAN Card or Form 60and policy number. To get the form you can
get in touch with
our representative at Probus or can download from the website of insurance
companies. After filling the form, you can submit this Aadhaar / PAN Mandate
Form along with a self-attested copy of Aadhaar card and PAN Card / Form 60 at
the nearest Branch or at Probus office for linking your policies. A self attested
copy of Aadhaar needs to be furnished to complete the process.