IRDAI Issues New KYC Requirement Norms For Policyholders: What You Need To Know?

Neha Gupta

Author

Updated: 28-01-2025 at 6:49 AM

IRDAI Issues New KYC Requirement Norms For Policyholders: What You Need To Know?

IRDAI, also known as the Insurance Regulatory and Development Authority of India is the apex body for the regulation of insurance and related development rules and norms for the insurance functions and policyholders in the country. It decides how the insurance policies will work in the country and it also keeps changing the rules from time to time, as need be.

Recently, IRDAI introduced new KYC norms for insurance policyholders. Let us find out what these norms are!

What Are The New KYC Norms Of IRDAI?

IRDAI has directed insurance companies to collect Know Your Customer (KYC) information of its existing policyholders. The insurance regulator has asked the companies to collect this data and upload it to the Central Know Your Customer Record Repository (CKYCRR).

The information that will be uploaded to CKYCRR must have been verified by the company. This direction from the IRDAI has come to increase the efficiency and speed of services provided to consumers. It also aims to increase the security and safety of financial transactions. The information has to be uploaded by 31st January 2025 to the CKYCRR.

What Is CKYCRR And Why Is It Needed?

CKYCRR is a depository that has been created by the central government of India in the form of a KYC system. It will contain the information and data of policyholders and will help in the borrowing of this information by companies and government departments.

Financial transactions and matters of a person related to such as mutual funds, stocks, insurance and the National Pension Scheme will be helped by the development of the CKYCRR system.

Mutual funds and insurance companies will be able to access this information and consumer onboarding will become easier, faster and convenient. The verification of information is also very necessary to ensure the authenticity of a consumer and prevent financial crimes.

To update any KYC information, insurance companies will have to procure the KYC record held by CKYCRR and then update it.

What Are The New KYC Norms Of SEBI?

In light of the KYC requirement guidelines issued by different departments of the government of India, SEBI has also issued directives on the KYC requirements of the investors. SEBI has asked KRAs or KYC Registration Agencies to collect the KYC data of investors from August 1, 2024, and complete it by January 31, 2025. This will streamline the process of investing and banking altogether.

Conclusion

KYC regulations and requirements are being mandated in almost all departments to verify the identity of investors/consumers/policyholders/others. KYC will not only provide ease of engaging in transactions to the consumers but also help the authorities and government officials keep a track record of everything.

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