The insurance regulatory and development authority of India (Irdai) has advised all insurance companies (life and non-life) to use “Video Based Identification Process (VBIP)” as an electronic medium to enhance the ease of doing KYC for customers looking to buy insurance products.
In a letter to the insurers, a copy of which Business Standard has seen, the regulator has laid down guidelines that the insurers need to adhere to for the video-based identification process. The idea behind this is to to simplify the process of KYC by leveraging various electronic platforms and make it customer-friendly as well as make it easier for doing business.
“This is being seen as another milestone for digitalisation of the entire insurance buying process. It will help consumers buy insurance products in the most convenient way possible. Through video KYC process, all that a customer would need to do is fill the policy document, sign it and make a video of the same to present the document to the insurer. Through this, the entire process of submitting physical documents will be eliminated”, said Santosh Agarwal, CBO, Life Insurance, Policybazaar.com
“Insurers may develop their App and undertake live VBIP, carried out by an authorised person of the Insurer, for establishment/ Continuation/ Verification of an account based relationship with an individual customer, after obtaining his informed consent”, Irdai said.
The person authorised to the video-KYC has to record the video and capture live photograph of the person concerned. Furthermore, live location of the customer (Geotagging) has to be captured to ensure that customer is physically present in India.
“All accounts opened through VBIP shall be made operational only after being subject to concurrent audit/ underwriting/ verification, to ensure the integrity of process,” the regulator said in the letter.