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Irdai may soon allow insurers to use video KYC for verification

02-Sep-2020

The Insurance Regulatory and Development Authority of India (Irdai) may soon allow insurers to leverage various electronic platforms to ensure ease of doing business.

In a circular sent to all general, health and life insurance companies last month, the regulator said that companies can use video-based identification process (VBIP) as an electronic medium to enhance ease of completing the know your customer (KYC) process. Mint has reviewed a copy of the draft guidelines, which are open for the stakeholders’ feedback.

The insurers shall develop their application and undertake live VBIP carried out by an authorized person appointed by the insurer for the establishment, continuation and verification of account-based relationship with the prospective customer. “This is very similar to the onboarding process being followed by banks. Something on the same lines is already prevalent and insurers call it pre-issuance verification call (PIVC). Irdai is now looking at giving video-based verification a formal nod," said Santosh Agarwal, chief business officer, life insurance, Policybazaar.com, an online insurance aggregator.

Insurers also have to ensure that the video is clear and the customer is easily recognizable. Further, the customer’s live location shall be captured through geo-tagging to ensure he or she is physically present in India.

Also, accounts on-boarded via VBIP shall be operational only after being subject to audit, underwriting and verification to ensure the integrity of the process.

“To ensure security, robustness and end-to-end encryption, the insurers shall carry out software and security audit and validation of the VBIP application before rolling it out," said the regulator in its circular. Insurers will have to trigger the audio-video interaction from their own domain and not from third-party service providers.

The move is in line with the digitization push that has come amid the pandemic. Irdai has asked for feedback from stakeholders and the final circular is expected soon.

Source : Live Mint

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