Skip to main content

Insurance companies should maintain policyholders' records for five years from now – says IRDA

By: PRLog
Buying health insurance has become a necessity these days. However, recently there has been an increase in fraud in the industry. The shock has not just hit the investors but also the sector regulator IRDA. It seems that the IRDA is upset with the entire money laundering act doing rounds with the industry. It has come up with some new guidelines to make sure family health insurance consumers get the most out of their investment.

PRLog - Jun 07, 2013 - NEW DELHI, India -- With cases and allegations of health insurance products being used for money laundering, a stern step has been taken by the regulatory. IRDA (Insurance Regulatory Authority of India), the sector regulator has recently given strict instructions to insurance companies across the country to keep clear 5-year records of customers and beneficiaries. The record maintenance will have details of a customer right from the starting to the termination of business relationship with insurance holders.

In a recent report, Insurance Experts have admitted, "IRDA has made it clear that insurance companies will keep complete documentation record. The record will comprise of customer identity and beneficial owners evidences. The record should also include account files maintenance and details of business correspondence related to the customer".

According to Insurance Experts, it is mandatory or insurance companies to maintain records for five years after termination of business or transaction association with the customer. IRDA gas come up with this rule last month and it will be in operation soon. The rule also mandates that the insurance agents should keep a transaction record for 5 years from the precise contract date.

Increase in cases of money laundering is the major reason behind the development of this new mandate by sector regulator. The family Health insurance field has also witnessed sharp increase in the cases of money laundering. It is also confirmed that the recent guidelines proposed by IRDA are in line with modifications in the Prevention of Money Laundering (Amendment) Act, 2012.

IRDA is now busy investigating the allegations related to money laundering allegations on Family Health Insurance and other insurance sectors in India. The sector regulator has sternly alerted insurers that strict action would be taken against those who are guilty.

As per an online post by the eminent online portal ‘Cobrapost’, India has a huge number of financial institutions, insurance companies and banks that have been allegedly operating money laundering racket across the country. And it has been a long time now. It is quite surprising but true that the portal actually named many banks and insurance companies involved in the shameful act.

It is said that about 4 Indian insurance companies were named in the ‘black list’ of ‘Cobrapost’. These companies are alleged to have corrupted the guiding principles of ‘Know Your Customer (KYC)’ and ‘Anti Money Laundering (AML)’.

Read Full Story - Insurance companies should maintain policyholders' records for five years from now – says IRDA | More news from this source

Press release distribution by PRLog

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.