In a letter to insurance companies, the Insurance Regulatory Development Authority of India (IRDAI) has detailed the specifications for such video-based identification process.
“In order to simplify the process of KYC, it is advisable to leverage the various electronic platforms to make it customer friendly at one hand and to make ease of doing business on the other,” IRDAI said in the letter dated August 24. ET has seen a copy of the letter.
“Hence, the insurers may use the “Video Based Identification Process (VBIP)” as an electronic medium, which may further enhance the ease of doing KYC,” the letter stated.
The move comes at a time when regulators across the board are easing compliance processes during the ongoing coronavirus pandemic to minimize physical contact in line with the new hygiene and social protocols. IRDAI last month had also relaxed norms for insurance companies to capture wet signatures from customers for new policies.
The process is set to be consent based, where an official from an insurance company will supervise the authentication. The official also must capture a live photograph and the geotag of the customer. Moreover, the identity of the customer can be confirmed either through UIDAI database or an OTP-based confirmation.
Video KYC will be permitted for both life and general insurance companies, as per the cited letter.
“The prime objective of video-based identification KYC will be to register the customer with the least amount of paperwork and in the shortest possible time possible. Also, the entire cost of the KYC process will come down by 90 per cent with the video-based identification KYC process,” said Santosh Agarwal, CBO, Life Insurance, Policybazaar.com.