The Insurance Regulatory and Development Authority of India (IRDAI) on 21st September 2020 has allowed life and general insurance companies to use Video-Based Identification Process (VBIP) to conduct the Know Your Customer (KYC) process digitally.
The objective of the Insurance Regulatory and Development Authority of India behind the VIBP is to leverage various electronic platforms to simplify, the KYC process, and make it customer-friendly.
IRDAI has said, “Insurers may undertake live VBIP by developing an application which facilitates KYC process either online or face-to-face in-person verification through video.”
IRDAI also said that the Insurers might undertake live VBIP by developing an application, which will facilitate the KYC process either online or face-to-face in-person verification through video.
And it also clarified that the Video-Based Identification Process (VBIP) is an alternative (optional) process for Identification and KYC in the paperless form will also be carried out by the insurer 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 further said that all accounts opened or any service provided based on VBIP should be activated only after being subject to proper verification by the insurer to ensure that integrity of the process is maintained and is beyond doubt.
Also to ensure security, robustness and end-to-end encryption, the insurers shall carry out software and security audit and validation of the VBIP application as per extant norms before rolling it out and thereafter from time to time. IRDAI emphasizes that it shall be the responsibility of the insurers to see that all the guideline is followed carefully.
The Reserve Bank of India (RBI) has already amended the KYC norms, allowing banks and other lending institutions regulated by it to use video-based customer identification process.
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