INSURANCE
Irdai permits insurers to use video-based KYC for onboarding customers
Sep-01-2020

With a view to enhance the ease of doing KYC and help the insurance sector which is battling the impact of COVID-19 pandemic, the regulator -- Insurance Regulatory and Development Authority of India (Irdai) has permitted life as well general insurers to use Video-Based Identification Process (VBIP) for prospective customers. VBIP is a method of customer identification by a representative of the insurer by undertaking real-time, consent-based audio-visual interaction with the customer to obtain identification information, including the required documents, and to ascertain the veracity of the information furnished.

The Reserve Bank of India has already amended the Know Your Customer (KYC) norms, allowing banks and other lending institutions regulated by it to use video-based customer identification process. Irdai said in order to simplify the process of KYC, it is advisable to leverage the various electronic platforms to make it customer friendly and improve ease of doing business. It said ‘Hence the insurers may use the ‘Video-Based Identification Process (VBIP)’ as an electronic medium, which may further enhance the ease of doing KYC’, and added that such process shall be treated as face-to-face process.

The Irdai further said insurers may develop their app and undertake live VBIP, carried out by an authorised person of the insurer, for establishment, continuation or verification of an account-based relationship with an individual customer, after obtaining his informed consent. It said authorised person of the insurer performing VBIP for KYC shall record video as well as capture live photograph of the customer present for identification and obtain the identification information. It said ‘The authorised person of the insurer shall ensure that the video is clear and the customer in the video shall be easily recognisable and shall not be covering their face in any manner’, added that live location of the customer (geotagging) should be captured to ensure that customer is physically present in India.

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