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- KYC Norms in Two-Wheeler Insurance
Understanding KYC Norms
IRDA launched the Master Guidelines on Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) . From January 1st, 2023 all two-wheeler insurance providers will have to follow customer identification procedures while issuing a fresh bike insurance or at the time of bike insurance renewal.
Insurers cannot skip the KYC process as it ensures a faster claim settlement and easy renewals. These regulations are mandated by the authorities to check the authenticity of applicants.
KYC Norms for Two-Wheeler Insurance Providers
Here is a list of norms that every two-wheeler insurer has to follow for both individuals and juridical people:
For Individuals
| Identification | Required for new and existing customers |
| Self Declaration | Mandatory (in case of different current address than the one mentioned in the Aadhaar card) |
| KYC For Existing Policy Holders | High-Risk Profiles: Within 1 year
Low-risk Profiles: Within 2 years |
| Documents Required | Identity proof, Address Proof, and Recent Passport-Size Photograph |
| Documents Accepted | Aadhar Card/PAN Card/Passport/Driving License etc |
Note: Those individuals who are not able to complete Aadhaar-based authentication due to some illness, injury, or any other medical emergency, need to submit officially valid documents during the commencement of an account-based relationship.
For Juridical Person
| Verification | Document Required |
| Registered Office | Address of the registered office of the juridical person |
| Legal Identity | The name, legal form, and proof of the existence of a juridical individual |
| Regulatory Authority | Power of regulating authority of the juridical person |
| Authorization | An authorized person who is purporting to act on behalf of a juridical client |
| Ownership | Identity of the beneficial owner of the juridical |
Different Methods of KYC for an Individual
Here is a list of documents required as ID and Address proof of an individual:
| Documents Required for Proof of Identity | Documents Required for Proof of Address |
| Aadhaar Card | |
| Passport | |
| Driving License (DL) | |
| Voter ID Card issued by Election Commission | |
| Ration Card with Photo of the Applicant | |
| Certificate of address having photo issued by MP/MLA or Group-A Gazetted Officer in letterhead | |
| Pensioner Card with a photo attached of the applicant | |
| Kissan Passbook with photo attached of the applicant | |
| Photo Identity Card (of Central Govt./PSU or State Govt./PSU only) with address | |
| CGHS (Central Govt. Health Scheme) /ECHS (Ex-servicemen Contributory Health Scheme) Card | |
| For rural areas: Gram Panchayat Residential Certificate issued by village panchayat head | |
| PAN Card | Water bill of the last 3-months |
| MGNREGA card issued by Govt. | Electricity bill of the last 3 months |
| Caste and Domicile Certificate with photo issued by State Govt. | Telephone bill/mobile postpaid bill of the last 3 months |
| Smart card having photo issued by CSD, Paramilitary/Defence | Income Tax Assessment Order (ITAO) |
| Passbook issued by post office/any scheduled bank with a photo attached | Two-wheeler Registration Certificate (RC) |
Final Words!
The Master Guidelines on Anti-money Laundering (AML) and Counter Financing of Terrorism (CFT) by IRDA will help the insurer to detect fraudulent activities and conduct a background verification of the client. Thus, the KYC norms and process must be essentially followed while issuing a new bike insurance policy or renewing an existing bike insurance policy.
Bike insurance companies
Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
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In India, driving license impounding refers to when authorities^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.
^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.
#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.
*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)
#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.
*Rs 457/- per annum is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial).The list of insurers mentioned are arranged according to the alphabetical order of the names of insurers respectively.Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
