The Insurance Regulatory Development Authority of India (IRDAI) is looking to incorporate video-based know your customer (KYC) verification of customers looking to buy insurance products.
The body has released draft guidelines with the insurance companies, seeking their feedback on the same. Once the feedback is processed, the body will release the final guidelines soon, a Moneycontrol report citing a top executive at an insurance company.
IRDAI, in a letter to insurance companies, said that the process will be undertaken by an official of the insurer through a consent-based audio-visual interaction with the customers. The video KYC will be permitted for both life and general insurance companies. The process will also enable complete digitisation of the insurance buying experience.
However, the regulator has warned that the whole process will need to be audited properly, and all security protocols will have to be strengthened to ensure that there is no scope of fraud. Further, the letter elaborated that geo-tagging of the customers’ location will be mandatory so that the location of the customer can be finalised and every video call will originate from the insurance company’s domain only.