Page 13 - Insurance Times June 2023

Norms on Lead Insurer
IRDAI forms task force to facilitate ease of doing KYC
Scheme expected soon
using Aadhaar
Guidelines on the Lead Insurer Scheme
IRDAI has constituted a task force to facilitate ease of doing Know Your Cus-
are expected soon with the regulator
tomer (KYC) by insurers using Aadhaar, the 12-digit individual identification
having increased the push for State-
number. In a circular, the IRDAI said presently, the UIDAI framework allows
wise insurance activity through periodic
insurance companies to indentify the customer by using his/her Aadhaar with
reviews and updates, according to in-
consent management.
dustry players.
"In the absence of the Unique Customer Identification in the insurance sec-
"It's going to come very soon. They are
tor, insurance companies are facing various issues while providing the ser-
going to be asking for periodic reviews,
vices and claims apart from ease of onboarding the customers, circumvent-
and the industry should be prepared to
ing possible frauds, etc," it said.
do a good job of their States because it
is going to be reviewed regularly," said The 12-member task force is being headed by Member (F&I), IRDAI.The panel
a senior official at a private life insurer, has been asked to suggest measures to ease of onboarding of customers
adding that the progress updates could using Aadhaar, and steps for fraud management at underwriting and claims
be quarterly or even more frequently stages.
during the initial period. It has also to suggest measures for improving the traceability of customers/
IRDAI has started reviewing the work beneficiaries to reduce unclaimed amounts of policyholders.
through the focal officers appointed for
each State. Insurance companies are
percentage over the next couple of IRDAI said the amendments have been
currently required to furnish data and
years. made on the basis of the evaluation of
activities being undertaken at the dis-
various representations received.
trict or gram panchayat level to these
IRDAI relaxes norms for The amendments follow the earlier no-
officers on a quarterly basis, insurers
tification removing the cap on premi-
said. surety bonds to expand
ums that could be underwritten in a fi-
Modelled similar to the Lead Bank market for such products nancial year by mono-line insurers
Scheme, where each bank is respon- IRDAI said it has relaxed norms for transacting only surety insurance busi-
sible for driving financial inclusion and 'surety bonds', a type of insurance policy ness.
banking services in the one to two protecting parties involved in a trans-
IRDAI said the current revisions are
states assigned to them, the Lead In- action or contract from potential finan-
aimed to expand the surety insurance
surer Scheme is aimed at growing in- cial losses due to a breach of contract
market by increasing the availability of
surance penetration in the country as or other types of nonperformance. The
such products and creating the oppor-
per the objective of 'Insurance for All' changes are aimed at expanding the
tunity for more insurers to service the
by 2047. surety insurance market by increasing
increasing demand from various sectors
the availability of such products.
While IRDAI had assigned these States of the economy.
to insurance companies over a year As per a circular issued by IRDAI, the
back, so far the push had been minimal solvency requirement applicable for
with no quantifiable targets as insur- such products has now been reduced Join
to control the level of 1.5 times from
ance companies were getting ac- Online Certificate Course on
1.875 times previously prescribed.
quainted with their respective States
Digital Trends in Motor
and looking to tie up with the State gov- Further, the prevailing 30 per cent ex-
Insurance
ernment and local authorities. posure limit applicable on each contract
underwritten by an insurer, has also
However, momentum has now picked
been removed. For details please visit
up and the issue is one of the top agen-
das for IRDAI, which has assigned broad The regulator had issued 'IRDAI (Surety
targets to insurance companies to grow Insurance Contracts) Guidelines' in www.smartonlinecourse.co.in
the business in their States by a certain January 2022.
12 June 2023 The Insurance Times