The Hindu Business Line : IRDA to check for policies linked to illegal entities

Hyderabad, Nov. 1 The Insurance Regulatory and Development Authority will appoint a nodal officer for implementing provisions pertaining to the sector in the Government of India order on Unlawful Activities Prevention Act (UAPA).

The regulator, in its Master Circular on Anti-Money-Laundering Guidelines issued in 2008, had asked insurers not to enter into a contract with a customer whose identity matches with a person with criminal background, with banned entities and those reported to have links with terrorists or terrorist organisations.

“A list of individuals and entities subject to United Nations’ sanction measures would be circulated to the life and general insurance companies through the respective councils on receipt of the list from the Ministry of External Affairs,” Mr Muralidharan, Member-IRDA, said in a circular.

The list would be in addition to the list of banned entities that was circulated to the insurers till date, he added.

The insurers should maintain an updated list of designated individuals and entities in the electronic form and run a check on the given parameters on a regular basis to verify whether designated individuals and entities were holding any insurance policies with the company.

If such policies were detected, the insurance company concerned has to convey the details of the insurance policies to the Joint Secretary, Ministry of Home Affairs, within 24 hours, the IRDA circular said.

The contact details of the nodal officer would be intimated to all insurers shortly, it added.

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