Insurance regulator IRDAI (The Insurance Regulatory and Development Authority) on Wednesday said linking unique identity number (UID) or Aadhaar with insurance policies is compulsory and asked insurers to comply with the statutory norms.
"The Authority clarifies that, linkage of Aadhaar number to Insurance Policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017," IRDAI said.
The government in June had notified the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aaadhar and PAN/Form 60 mandatory for availing financial services including insurance and also for linking the existing policies with the same.
In a communication to all life and general insurance companies, IRDAI said the rules have "statutory force" and as such they have to implement them without awaiting further instructions.
There are 24 life insurance companies and 33 general insurers (including standalone health insurers) operating in the country.