Insurers can now use video-based identification process (VBIP) in Know Your Customer (KYC) process for insurance policies.
With a view to simplifying the KYC process by leveraging various electronic platforms to make it customer-friendly, the Insurance Regulatory and Development Authority of India (IRDAI) has permitted all life, general and standalone health insurers to use VBIP as an optional.
“Insurers may undertake VBIP by developing an application, which facilitates KYC process for either online or face-to-face personal verification through video,” said the regulator in a circular released on Monday.
This may be used for establishment, continuation or verification of an account-based relationship, or for any other services with an individual customer or beneficiary.
The insurer or authorised person can record an “online, clear video” by capturing the live location of the customer (geotagging) to ensure that the customer is physically in India.
All accounts opened or serviced in any other manner on the basis of the VBIP should only be offered after through verification to ensure the integrity of the process, according to the circular.