- The regulator made it a compulsion for all the companies to now link their Aadhar to every single policy.
- This will all create a lot of logistical challenges to all those who provide insurance.
- The Supreme court has also asked the banks to stop messaging people regarding the deadline and to stop creating panic like this.
- The last date to link the cards is 31st December 2017 and people can also use the e-filling sites to link the cards.
The new rule of now linking your Aadhaar and PAN to your Insurance accounts is sure to create a lot of logistical challenges. The regulators have also made it a compulsion to all the companies to link it to the Aadhaar with individual policies. The supreme court has also asked the banks to stop creating panic by sending messages about the deadlines and creating a ruckus.
The innuendo to that is the insurers are allowed to hold claims and can hold the information till the time the people submit their Aadhaar and PAN number. The IRDAI –Insurance Regulatory and Development Authority of India stated that the Government in its notification that was sent out on June 1, 2017, has made linking of the Aadhaar and PAN a compulsion.
IRDAI member Mr. Nilesh Sathe told- that they have already informed the companies that it is a law and they cannot abide the law. A lot of people were against it, but they have to do it. The life insurers are already forbidden from the settling of the claims through cash. The claimed amounts are then transferred to the banks, which are now a mandate and should be linked to the Aadhar. A lot of insurers have already started asking about the PAN details for all the life policies but the regulators need them for a premium that should be more than fifty thousand.
The Big challenge
- The life insurers have issued 2.67 crore worth policies and out of which 2.05 crore were from LIC.
- The LIC in itself has more than 29 crores of holders.
- There are in total 54 insurance companies, which includes- 1 life, 4 non-lives and 1 reinsurance company and that is in the public sector. The private sector has twenty-three life insurers, five health insurance, and around 18 general insurers.
The method of linking the Aadhar to the Policies will have the similar ways just like the banks. People can link their cards to PAN in a very simple method and Nilesh Sathe does not want to create any complications.
How to Link Aadhar Card with PAN
- The government has made a Message-based facility available which helps in linking the two cards. And SMS must be sent to the 56161 or 567678 in a proper format- UIDPAN<12-digit aadhar><12-digit PAN>
- You can also link it to the income tax websites and get your cards linked.
- The other way to link the two cards is through the PAN application form.
The Government has made the PAN and Aadhar linking compulsory to file the Income Tax Returns.
The process of linking the Aadhar to the policies is a tedious job and it will take the same effort as it was needed in the banks. The insurance policies have year-long validity and they have a lot of policies that need to be covered. There are 54 companies, which includes- 1 life, 4 non-lives and 1 reinsurance company and that is in the public sector. The private sector has twenty-three life insurers, five health insurance, and around 18 general insurers.