IRDAI: Insurance companies can do video-based KYC of the customer

The Insurance Regulator and Development Authority of India (IRDAI) has announced a new facility for customers taking an insurance policy.

Now customers taking insurance will need to go somewhere for KYC and do not need to meet an agent.

The Insurance Regulator and Development Authority of India (IRDAI) has allowed life insurance and general insurance companies to video-based KYC of their customers.

Since IRDAI facilitates video KYC, insurance companies will be able to easily fulfill the KYC requirement online in times of Corona crisis.

IRDA said in its statement issued on Monday that the purpose of the video-based KYC process is to make the KYC process easier and customer-friendly through various online platforms.

The facility of video KYC will benefit the customers and will also eliminate the risk of corona infection. The Insurance Regulator and Development Authority of India (IRDAI) says that insurance companies can develop the app to complete the KYC process online.

Insurance Regulatory and Development Authority (IRDA) says that all accounts or other services opened through the video-based identification process (VBIP) would have to be started only after complete verification by insurance companies.

It maintains the credibility of the online verification process. Besides, insurance companies will also have to conduct software and security audits as per the laid down rules. The video-based identification process (VBIP) app needs to be thoroughly tested before starting.

Insurance Regulatory & Development Authority (IRDA) said that insurance companies should use modern technologies like Artificial Intelligence (AI) and face recognization to strengthen this system and secure information.

Insurance Regulatory and Development Authority of India (IRDAI) said that the verification process complete responsibility to the insurance company.

Earlier, RBI has amended the KYC rules. Due to this, banks and other lending institutions, which are regulated by RBI, are allowed to use the video-based customer identification process.

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