The Complete Guide to KYC in Health Insurance for Policyholders
The Complete Guide to KYC in Health Insurance for Policyholders
Health insurance is among the most essential investments that one can consider to secure their future healthcare needs. With the rising healthcare costs, a single hospitalisation can put a substantial financial burden on the family. A personal health insurance plan can provide financial security to the insured person and their family in case of medical emergencies. The Insurance Regulatory and Development Authority of India (IRDAI) has made it compulsory for all insurance companies to complete the Know Your Customer (KYC) process before issuing any health insurance policy. Let’s talk over everything you need to know about KYC in health insurance in India.
Why is KYC important in Health Insurance?
KYC in health insurance is the process of identifying and verifying the customer’s identity before entering a business association with them. KYC in insurance is important to ensure that the insured person is who they claim to be and to prevent sham activities, such as fake claims, identity theft, etc. KYC in health insurance also helps health insurance companies understand the customer better and provide them with customised policies as per their budget and needs.
What is CKYC?
Central KYC or CKYC is a centralised KYC process introduced by the government of India to simplify the process of KYC in health insurance across financial institutions. Under the CKYC process, customers can complete their insurance KYC once and use it across various financial institutions, including insurance companies.
What is the advantage of CKYC?
The primary advantage of CKYC is that customers need not complete the insurance KYC process every time they open an account or invest in a financial product. Once the CKYC process is completed, customers can use it across various financial institutions, which saves time and effort. If there is a change in your KYC in insurance details, you need to update your CKYC.
What is the process of completing CKYC?
To complete the CKYC process, customers need to visit a CKYC registration agency and submit the required documents, including address proof, identity proof, and photographs. Once the documents are verified, the customer’s KYC details will be uploaded to the CKYC registry, and a unique CKYC ID—a 14-digit KYC Identification Number (KIN) number—will be generated.
How is CKYC beneficial?
CKYC in insurance is beneficial for customers as it simplifies the KYC process, reduces paperwork, and saves time. For insurers, CKYC helps in reducing the time and labour required for KYC in health insurance verification and enables them to onboard customers quickly.
Documents Required for KYC in Insurance
The documents required for KYC in health insurance include valid identity proof, such as an Aadhar Card, Voter ID Card, PAN Card, or Passport, and valid address proof, like utility bills, rent agreement, or bank statements. The insurance company must carry out Client Due Diligence (CDD) based on the KYC documents for every new policyholder.
How can I update my KYC with HDFC ERGO if I am an existing customer?
Existing customers of HDFC ERGO can update their KYC in health insurance details by contacting the customer care centre or visiting the nearest branch office. Customers need to submit the updated KYC documents along with a written request to update KYC in insurance.
How can I check if I am CKYC compliant?
Customers can check their CKYC compliance status by visiting the CKYC website and entering their CKYC ID or PAN Card details. Customers who have completed the CKYC process will have a CKYC ID, which can be used across various financial institutions. Once you enter the security code, your CYKC details will be displayed.
Summing Up
Whether you are an existing policyholder or planning to buy a health insurance policy, you have to submit your KYC documents, as the IRDAI has now made it mandatory. Existing policyholders have to submit the required documents at the earliest, failing which they may not be able to renew or buy health insurance. If you don’t have health insurance, it is wise to purchase the best health insurance in India at the earliest to stay financially secure.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.
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