From Jan 1, the policyholders have to provide Know Your Customer (KYC) documents for buying all types of insurance. The IRDAI (Insurance Regulator and Development Authority of India) has made mandatory the KYC norms for buying all new insurance policies.
Sharing KYC documents was a voluntary choice to buy policy. However, the insurers will now have to collect KYC documents from their customers.
With this new rule, the claim process may become faster and more seamless as the insurers will have a detailed profile of their customers.
Furthermore, IRDAI has asked insurers to give discounts on renewal who have taken three shots of COVID-19 vaccine.