As per the IRDAI, starting January 1, 2023, KYC details will be mandatory to buy or renew all insurance plans. This includes travel insurance plans that will be purchased starting the new year. The move is based on guidelines issued in August 2022, and apply on all kinds of travel insurance plans, irrespective of their premiums. Continue reading to know all about travel insurance KYC documents.
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Until January 1, 2023 KYC was an optional choice for customers purchasing general insurance. According to the guidelines issued in August 2022, Insurance Regulatory & Development Authority of India has made KYC compulsory to protect the insurance sector from money laundering and other fraudalnt activities. All travel insurance companies in India will now require customers to fill a KYC form.
The move will help identify real users from frauds before companies can provide them their insurance benefits. It will also aid insurers in risk assessment of their customers, helping them price their travel insurance products depending on low- risk, medium-risk and high-risk customers.
KYC checks will also provide a detailed database of customers that will accelerate claim settlements and carry them in a seamless manner. As the company will already have customer’s important documents, it is expected that KYC won’t be required during the claim process.
According to IRDAI’s guidelines on Anti-Money Laundering/ Counter Financing of Terrorism (AML/CFT),there are different ways through which insurers can conduct the KYC check of their travel insurance customers:
Given below are the KYC documents that can be used to buy travel insurance policy:
Please note that proof of identity and proof of address may vary, so carefully go through the list of approved documents as per the government guidelines.
The IRDAI has issued some essential KYC norms that must be followed by travel insurance providers in India. These have been briefly given below:
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All life and non-life insurance policies will now involve KYC check. Be it buying or renewing an insurance plan, customers should prepare relevant documents to meet this mandatory requirement. Don’t forget to to go through the list of KYC documents before buying your next travel insurance policy.
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