Home news Why Should You Link Your Aadhar Card To Your Insurance Plans?

Why Should You Link Your Aadhar Card To Your Insurance Plans?

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Lately, several speculations about the Aadhar card have been rife. Towards the end of 2017, the Insurance Regulatory and Development Authority of India (IRDAI) made it mandatory to link Aadhar to insurance policies under the Prevention of Money Laundering Second Amendment Rules, 2017. This linkage has impacted both – general and health insurance policies.

If you don’t have a physical copy of your Aadhar, aadhar card download online is available on official website.
Here’s a brief lowdown on why this linkage was important, and how you can benefit from it.

Get Rid of Fraudulent Insurance Claims

The lack of a unique identity in India before the advent of Aadhar has led to many frauds in the financial domain. For insurers especially, fraudulent claims have been a standing menace, with everything from inflated bills in motor to fake medical or accident insurance claims. As per latest research, the general insurance industry is losing Rs. 2,500 to Rs. 3,500 crores annually due to such frauds.

IRDAI and insurers thus believe that linking Aadhar will do away with the menace of fake insurance claims. This is because, linking Aadhar can lead to genuine identity and help spot frauds easily. Besides, linking the bank account to the Aadhar adds an extra layer of security and helps in accelerating the claims process for a genuine claimant.

Reduced Insurance Costs

The Aadhar linkage will not only prove beneficial for insurers, but for genuine policyholders as well. Due to high rate of fraudulent incidents, the average insurance cost had risen manifold, with implementation of fraud detection mechanisms. Insurance industry spokespersons claim that 6-10% of the premium cost is to pay for fraudulent claims. The linkage of Aadhar can thus, save costs not only for insurers, but for genuine policyholders as well.

How to link Aadhar to your insurance policies?

The different benefits of linking Aadhar to your insurance policies necessitate the linkage as soon as possible. If you’re looking to know how to link Aadhar to your insurance policies, read along to know what to do.

For Registered Policyholders: If you are a registered policyholder of an insurance company, the easiest way to link your Aadhar is the online process. All you have to do is visit the service portal of your insurer and follow an easy set of instructions to upload your Aadhar details in a matter of minutes.

For Non-registered Policyholders: If you are purchasing a policy from an insurance company for the first time, you can also visit the website of the insurer and complete the Aadhar linking process. You will need to furnish other details such as your PAN card number, date of birth, mobile number and email ID to register for the first time. Once you have entered these details, an OTP is sent to your mobile number. You can easily complete the process, by entering the OTP.

Offline Process

For those who are not comfortable with the online procedure, there is also an offline process. You can visit the nearest branch office of your insurance company, or approach your investment agent to help you link your policy with Aadhar. Make sure you carry a self-attested copy of your Aadhar or e-Aadhar to go through the process of offline linkage.

You can choose either the online or the offline method to link your Aadhar to your insurance policy. You can also check your e aadhar status online. It may take you a few extra minutes to link your Aadhar on the service portal of the insurer, but it is indeed worth your time.

Keeping your Aadhar card handy, can help you when you’re making a new purchase.

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