IRDAI enables Video-Based Identification Process for Insurers [Read Circular]

In a first, to simplify the process of Know Your Customer (KYC), The Insurance Regulatory and Development Authority of India (IRDAI) has proposed to leverage the various electronic platforms to make it customer friendly and has permitted the use of “Video Based Identification Process (VBIP)” for insurers.

“Video Based Identification Process (VBIP)”is an alternative (optional)electronic process of Identification / KYC in paperless form, carried out by the insurer/authorised person (person authorised by the insurer and specifically trained for face-to-face VBIP) by undertaking seamless, secure, real-time, consent based audio-visual interaction with the customer/beneficiary to obtain identification information including the necessary KYC documents required for the purpose of client due diligence and to ascertain the veracity of the information furnished by the customer/ beneficiary.

IRDAI has released a detailed and stringent guideline regarding the conduct of the VBIP which includes the need for insurers to ensure that the process is a seamless, real-time, secured, end-to-end encrypted audio-visual interaction with the customer/ beneficiary and the quality of the communication is adequate to allow identification of the customer/ beneficiary beyond doubt. Insurers are to carry out the liveliness check in order to guard against spoofing and such other fraudulent manipulations.

“Insurers shall ensure that the video recording bears the GPS coordinates, date (DD:MM:YY) and time stamp (HH:MM:SS) along with other necessary details, which shall be stored in a safe and secure manner as per Prevention of Money-Laundering (PML) Rules.While exercising Online VBIP, the Insurer shall exercise extra caution and the additional necessary details viz. IP address etc. shall be preserved by the insurer to substantiate the evidence at the time of need”,  thus reads an extract of the said notification.

IRDAI emphasizes that it shall be the responsibility of the insurers to see that the guideline is followed scrupulously.

It has also asked that the insurer to adhere to the IRDAI Cyber security guidelines as amended from time-to-time along with the necessary security features and standard as mentioned in Annexure – I of the notification.