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KYC For Two-Wheeler Insurance: What You Need To Know

IRDAI recently announced Master Guidelines on Anti-Money Laundering (AML) and Counter-Terrorism (CFL). Two-wheeler insurers like bajaj allianz bike insurance must identify customers while issuing or renewing policies starting January 1, 2023. #

The auto insurance company must comply with KYC standards. These regulations verify claimants’ identity for claim settlement.

Find below a list of requirements/ KYC standards for motorcycle insurance providers that every two-wheeler insurer must adhere to:

  • General insurance companies must authenticate new and existing clients’ identities by collecting applicants’ personal information.
  • Each two-wheeler insurance customer must supply proof of identity, residence, and a current passport-sized photo.
  • Self-declaration is needed to change an Aadhaar card address.
  • Before starting an account-based relationship, those who cannot complete Aadhaar-based authentication due to illness, accident, or other medical emergencies must present valid papers.
  • Policyholders must undergo Know Your Customer checks. Re-KYC takes 2 years for low-risk policyholders and 1 year for high-risk ones.

Various Methods For Individual KYC

An insurer can issue a bike insurance policy using the following Know-Your-Customer (KYC) procedures:

  • Aadhaar-based KYC: Online and offline authentication.
  • Video-based Video verifies face-to-face KYC.
  • PML-compliant digital verification.
  • CKYC-registered in the repository.
  • PAN or Form 60 with Officially Valid Documents (OVD).

Required Documents For Individual Know-Your-Customer (KYC)

Find below a list of acceptable identification and address proof documents for bajaj allianz bike insurance:

Acceptable Identification Documents

  • Aadhaar Card
  • Driving Licence (DL)
  • Election Commission issued voter ID
  • Passport
  • Ration card bearing the applicant’s photograph
  • ECHS (Ex-servicemen Contributory Health Scheme)/CGHS (Central Govt. Health Scheme)

Required Location Verification Documents for bike insurance

  • Aadhaar Card
  • Driving License (DL)
  • Passport
  • Election Commission-issued voter ID
  • Ration Certificate bearing the applicant’s street address
  • Card Photo Identity Card with registered address central government/ state government/ PSU only.

For rural areas:

Proof of Identity

  • Gram Panchayat Residential Certificate issued by the chief of the Village Panchayat
  • Certificate of address with photo issued by MLA/MP or Group on the letterhead of a Gazetted Officer
  • Certificate for Income Tax**
  • Government-issued MGNREGA card
  • Caste and Domicile Certificate with photograph issued by the State Government
  • Smart Card with a photograph issued by CSD, Paramilitary/Defense
  • A passbook issued by the post office or a chartered bank, along with a picture of it
  • Pensioner Card with the applicant’s photograph affixed
  • Applicant’s photograph affixed to a Kissan Passbook
  • Photo Identity Card (of PSU or State Government/PSU only/Central Government)

Proof of Address required for bike insurance. Check online to know more:

  • Gram Panchayat Residential Certificate issued by the chief of the village panchayat
  • Certificate of address with photo issued by MLA/MP or Group on the letterhead of a Gazetted Officer
  • Water, electricity, and phone bills for the past 3 months
  • Income Tax Assessment Order (ITAO) **
  • Certificate of Vehicle Registration (RC)
  • Pensioner’s Certificate bearing the applicant’s address
  • Kissan Passbook with applicant’s address
  • State-issued Caste and Domicile Certificate containing an address and photograph could be required.
  • MGNREGA card

In conclusion, the Master Guidelines on Anti-money Laundering (AML) and Counter-financing Terrorism (CFL) by IRDAI will assist the insurer in detecting fraudulent activities and conducting a background check on the client.#

Subscribe to Bajaj Allianz General Insurance YouTube Channel here!

# Visit the official website of IRDAI for further details.

** Tax benefit is subject to change in prevalent tax laws

Insurance is the subject matter of solicitation.’ For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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