Indian insurers use personal ID numbers to help combat fraud
As well as being a more practical method for customers, the move helps combat money laundering issues
Twenty-nine insurance companies, as well as nine security firms, have been authorised to use Aadhar authentication services to perform online Know Your Customer (KYC) procedures in real time and reduce the cost of transactions.
Three of the 29 insurance companies involved are health insurance firms, namely Apollo Munich Health Insurance, Manipal Cigna Health Insurance and Religare Health Insurance. Six of the companies are general insurance firms: Kotak Mahindra General Insurance, Future Generali India Insurance Company, Acko General Insurance, Royal Sundaram General Insurance, SBI General Insurance and HDFC Ergo General Insurance.
Authorised by the Finance Ministry, this latest move will combat fraud, as well as proving more efficient for customers, who will no longer need to submit documents in hard copies. Instead, they can simply provide their 12-digit identification number issued to residents of India by the Unique Identification Authority of India.