In order to simplify the process of Know Your Customer (KYC), the insurance regulator IRDAI, on Monday, has decided to allow the various electronic platforms including the use the “Video Based Identification Process (VBIP)” to make it customer friendly.
However, the ultimate responsibility for client due diligence will be with the insurer, said the IRDAI .
Insurers or any authorised person can undertake VBIP by developing an application which facilitates KYC process either online or face-to-face in-person verification through video. This can be used for establishment/continuation/ verification of an account based relationship or for any other services with an individual customer/beneficiary, as the case may be, after obtaining his/her informed consent.
The insurer or an authorised person while performing the VBIP for KYC will record clear live video of the customer/beneficiary present for identification and obtain the identification information in the form.
Live location of the customer/beneficiary need to be captured (both for online/ face-to-face VBIP) to ensure that customer/beneficiary is physically present in India.
Insurers have to 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 have to be stored in a safe and secure manner as per Prevention of Money-Laundering (PML) Rules.
While exercising Online VBIP, the insurer has to exercise extra caution and the additional necessary details viz. IP address etc. have to be preserved by the insurer to substantiate the evidence at the time of need.
Insurers have to also maintain the details of the concerned authorised person, who is facilitating the VBIP, said IRDAI..