IRDAI clearly stated that in case of any customer discrepancy at a later stage, the insurer will be fully responsible.
The Kovid-19 pandemic has shifted the entire world online in view of the safety and flexibility of the people. Due to this, the insurance industry has also taken a great step for its customers, now customers can buy insurance products online. The Insurance Regulatory and Development Authority of India (IRDAI) has allowed insurance companies – life and non-life – to use the video-based identification process (VBIP) to obtain the KYC documents of the customer, which is used to issue the policy. Mandatory to do.
What is Video KYC? It primarily allows customers to participate in the KYC process over video conferencing. In this way, it enables insurance companies to ascertain the authenticity of the customer by verifying documents, biometrics and geo-location.
The Authorized Representative of the Insurance Company may do live video recording of the applicant to obtain the necessary information. In this process, along with the time and date, the live location of the customer will also be captured.
In order to ensure the security, safety and end-to-end encryption of the share data, the insurer should conduct software and security audits and validation of VBIP applications as per the norms prescribed by IRDAI from time to time.
According to IRDAI, to strengthen the integrity and credibility of information shared through video KYC, insurance companies should adopt the latest technology – including Artificial Intelligence (AI) and face matching technology.
Meanwhile, IRDAI categorically stated that the insurer will be solely responsible in case of any customer discrepancy at a later date. Also, video KYC is allowed only for customers residing in India.
RBI has already amended the KYC norms that allow banks and other central bank-regulated lending platforms to use the video-based cluster identification process. This is a great way to continue customer service amid the pandemic without violating social distancing protocols.
