Insurance policy issuance and claims verification

Digital ID is used for customer identity verification during insurance policy issuance and authenticates claimants during claims processing. Aadhaar-based electronic know your customer (e-KYC) has been operational since 2017. It enables insurance companies to verify policyholders’ identities during policy purchase, reduces the need for physical documentation, and enables paperless policy issuance for life insurance, health insurance, general insurance, and other pension products. The Insurance Regulatory and Development Authority of India (IRDAI), in collaboration with the Unique Identification Authority of India (UIDAI) and insurance companies, has enabled integration of Aadhaar authentication into the insurance lifecycle. This improves customer onboarding, prevents fraudulent policies, and streamlines claim settlement. In 2024, IRDAI instructed all insurers to link new and existing insurance policies with Aadhaar numbers. This prevents fraudulent claims and ensures accurate identification of policyholders and beneficiaries.