When it comes to bike insurance, Know Your Customer (KYC) norms play a significant role in the application and renewal process. From January 2023 onwards, the Insurance Regulatory and Development Authority of India (IRDAI) has mandated that all insurance companies must verify the identity of policyholders to prevent fraud and ensure transparency in transactions. As a policy buyer, you must abide by the KYC norms when buying a bike insurance
policy. Since this is a relatively recent amendment, you may have some queries and doubts regarding the KYC norms you may have to follow.
To help you and other potential policyholders, we take an in-depth look at KYC norms in bike insurance and understand the importance of complying with them.
What Are the KYC Requirements for Bike Insurance?
First, let’s understand what KYC is. It is a process that requires policyholders to provide personal information and valid identity documents to verify their identity.
The KYC requirements for buying bike insurance
are simple and straightforward. Policyholders need to provide the following documents:
- Identity proof, such as an Aadhaar card, PAN card, passport, voter ID, or driving license.
- Address proof, such as utility bills, a passport, bank statement, or driving licence.
- Passport-sized photograph
In the case of corporate or business policyholders, legal proof of the corporate entity, organisation registration certificate, and other official documents may also be required in addition to the above documents.
Policyholders must comply with these KYC norms in two-wheeler insurance
by providing accurate KYC documents during the application and renewal process to counter unethical activities and prevent fraud.
It also helps in establishing the credibility of the policyholder and enhances the trust between the policyholder and the insurance company.
It is important to note that the documents provided as part of the KYC process must be valid, up-to-date, and accurate. Any discrepancies or errors can lead to a delay in the application or renewal process.
How To Comply with KYC Norms For Bike Insurance?
Complying with KYC norms for bike insurance is simple and straightforward. Here's what you need to do:
Submit the necessary documents:
Provide the required KYC documents to your insurance provider. Make sure that the documents are accurate, up-to-date, and valid.
Keep the documents handy:
Keep a copy of the KYC documents with you at all times, as they may be required in case of an accident or mishap.
Update the documents:
If there are any changes in the KYC documents, such as a change in address or phone number, inform the insurance provider immediately and provide the updated documents.
Ensure that your two-wheeler insurance renewal is carried out on time and provide updated KYC documents if necessary.
Different Ways of Following KYC Norms for Individuals
There are various methods of KYC that vehicle insurance
companies use to verify the identity of individual policyholders. Let's explore them in detail.
Aadhaar-based KYC is a simple and hassle-free process that involves linking the Aadhaar number with the bike insurance policy. The policyholder can provide their Aadhaar number and authenticate it through an OTP sent to their registered mobile number.
Video-based KYC involves the policyholder providing their identity proof, such as an Aadhaar card, and a live video of themselves to the insurance company. The insurance company verifies the identity of the policyholder through the video and matches it with the identity proof provided.
This is a traditional method of KYC that involves the policyholder visiting the insurance company's branch office or a designated location to provide their identity proof and other documents. The insurance company verifies the documents and completes the KYC process.
OTP-based KYC is a simple and convenient method that involves the policyholder providing their mobile number and verifying it through an OTP sent to their registered mobile number. The insurance company verifies the mobile number and completes the KYC process.
What Happens If You Fail to Comply with KYC Norms?
If a policyholder fails to comply with KYC norms, the insurance company may reject the application or delay the renewal process. In case of a claim, the insurer may reject it if the policyholder has not complied with KYC norms. The IRDAI has mandated KYC norms, and as a responsible bike owner and policyholder, it is your duty to engage in due compliance.
Following KYC norms in vehicle insurance is essential to prevent fraudulent claims and ensure that the policy is issued to genuine individuals. By complying with KYC requirements, policyholders can establish their credibility and enhance the trust between them and the insurance provider.
It is important to keep the KYC documents accurate, up-to-date, and valid to ensure a smooth application and renewal process. By following these simple steps, policyholders can ensure that they comply with KYC norms and enjoy hassle-free bike insurance
* Standard T&C Apply
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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