People's registration is accepted as number of priority in
every country. India is not the exception where every day, numerous people get
registered in Government's database. Keeping this database up to date, it is
necessary that people are given easy access for registration process. To make
the enrollment center, Government setup UIDAI in 2010. Since then, UIDAI is
handling all the task of enrolling people of India via its various Aadhar
Centre.
There is no doubt that Aadhar is a very basic document and
no one can deny its importance. It is a mandatory document at so many places.
Even in employment, this is required for verification and address confirmation. Though, in some situation it could not asked. But
organizations still ask for this number. This causes a lot of pain and trouble
to the people and they have no option left to avoid the transaction. But our
today’s article will give you comprehensive knowledge to help you in doing
transactions.
Keeping in view the problems of Indian people, Supreme Court
extended the date for linking financial services with Aadhar. These financial
services include mutual funds, bank accounts and insurance policies. But it
seems that the ruling of the court is of no value as we have reports from all
over the country that banks and insurance companies are still asking for the aadhar card number for opening a bank account or selling insurance policies.
Aadhar
for Insurance is Mandatory?
Irdai (The Insurance Regulatory and Development Authority of
India has clarified the case that there is no hard and fast rule to provide
Aadhar at the time of purchasing an insurance policy. However, the policy
holder must submit the Aadhar to the insurance company within 06 months’ time
period. So, if any insurance policy selling agent asks you to submit Aadhar
number, you can easily satisfy him or her by showing the special instruction of
Irdai while you face problems due to Aadhar for insurance.
In case you do not have Aadhar at the time of taking the
policy, you can submit any of the Officially Valid Documents which are
specifically specified in Prevention of Money-Laundering (Maintenance of
Records) Rules, 2005. These valid documents are passport, PAN card, driving license,
voter identity card and job card issued by MGNREGA (Mahatma Gandhi National
Rural Employment Guarantee Act) and Aadhar card. Please keep in mind that all
documents are also used as address verification document while PAN card cannot
be used for this purpose.
You might hear the term of e-KYC. It is the Aadhar-based
electronic-know your customer process. Insurance companies can easily use this
to verify their customers. Government specifically requires that when an
insurance company directly sells a life insurance policy to a customer, it must
conduct KYC check. However, if the transaction is done through other channel
such as online, this KYC check needs to be done within 15 days. These are the
steps to prevent money laundering which is a hot burning issue all over the
world.
