KYC is a regulatory requirement that mandates insurance companies to verify the identity and address of their customers before issuing a policy.
Filling out a car insurance policy’s KYC (Know Your Customer) details can seem intimidating. In today’s fast-paced world, many of us simply lack time. However, the KYC process serves as the crucial link between policyholders and insurance companies.
KYC is a regulatory requirement that mandates insurance companies to verify the identity and address of their customers before issuing a policy. Completing KYC is essential for regulatory compliance and ensuring faster processing of the insurance policy. However, the KYC process can be time-consuming and tedious, especially if the required documents are not submitted correctly, or there are delays in the verification process.
In this blog, we will provide tips and strategies to get your car insurance policy KYC done quickly and efficiently. We will also explain the KYC requirements for car insurance and the benefits of completing KYC quickly. By following our tips, you can avoid delays and penalties and ensure a seamless insurance experience.
What is KYC in car insurance?
KYC in car insurance is a regulatory requirement that mandates insurance providers to verify the identity and address of their customers before issuing a policy. This is to prevent fraudulent activities and ensure the insurance company has accurate information about the policyholder. The KYC process involves submitting certain documents, such as Aadhaar Card, PAN Card, and Driving License.
From January 1, 2023, the Insurance Regulatory and Development Authority of India (IRDAI) has mandated KYC for all types of insurance, including car insurance policy plans which may cover consumables in car insurance. Prior to this, KYC was required only if the claim amount exceeded Rs 1,00,000. But now, it is compulsory to provide KYC details when purchasing a policy and its renewal.
Documents required for KYC
Mainly the following documents are required for KYC:
- Aadhaar Card
- PAN Card
- Passport
- Driving License
- Voter’s Identity Card
- Passport-sized photograph
The Process of KYC in Car Insurance
- The KYC process starts with the collection of the personal information of the policyholder.
- The policyholder fills out a KYC registration form with their personal details.
- Attaching supporting documents validates the information. You can attach documents, such as identity proof, address proof, and a recent photograph. Providing the aforementioned documents is mandatory for the proper identification of the policyholder.
- Customers can choose between online verification or offline KYC to complete the process.
- Video KYC is also an option available to customers to complete the KYC process.
Tips to getting car insurance KYC done quickly
Here are some tips that can help you get your car insurance policy KYC done quickly:
- Keep all the required documents handy: Make sure you have all the necessary documents, such as Aadhaar Card, PAN Card, Driving License, and a recent photograph, ready before starting the KYC process.
- Verify the information provided: Double-check the information you provide in the KYC registration form to avoid any inaccuracies that can lead to the rejection of your policy application.
- Choose the right mode of KYC: Select the mode of KYC that suits you best, whether it is online verification, offline KYC, or video KYC.
- Follow up with the insurer: In case of any delays or discrepancies, follow up with the insurer to ensure that your policy application gets processed without further delay.
Benefits of KYC in car insurance
The advantages of KYC in car insurance are listed below:
- Increases security: KYC adds an extra layer of security to the insurance process by verifying the identity and address of the policyholder. This ensures that only genuine policyholders are insured.
- Compliance with regulations: KYC helps insurers comply with regulations set by the IRDAI and other government bodies to prevent money laundering and terrorism financing.
- Accurate customer records: KYC helps insurance companies maintain accurate customer records and prevent any discrepancies in their data. This is especially important for insurers when settling claims, as they need to have accurate and up-to-date customer information.
- Faster claims processing: With accurate KYC details, insurance companies can quickly verify the identity of the policyholder, making it easier to process their claims. Policyholders can receive their coverage benefits without delay, making the process faster and more efficient.
- Improved customer satisfaction: With the new KYC compliance process, policyholders can easily provide their KYC details online or offline, making the process more efficient and hassle-free. This results in a more positive experience for the policyholders. Moreover, KYC reduces the risk of any issues arising due to incorrect or outdated information and also leads to faster claim settlement, thereby enhancing customer experience.
Conclusion
In conclusion, completing KYC requirements is essential in acquiring a car insurance policy in India. Whether for new policy issuance or renewal of an existing one, completing KYC helps establish trust and transparency between policyholders and insurance companies. With the option of motor insurance online, it has become even more convenient to complete the KYC process. Additionally, policyholders should also be aware of consumables in car insurance, as certain policies provide coverage for them. By following the tips discussed in this article, policyholders can ensure a quick and hassle-free KYC process, ultimately leading to a smoother insurance experience.
