Buying Health Insurance? Learn How to Update your KYC Details

For updating your KYC details with regard to health insurance, it is important to verify the current details you have with you, ensure that your proof of identity and address are all in order and submit the same through the channels provided by your health insurance company. You must do this when your details change.
 

Health insurance purchase entails much more than just choosing a coverage and making payment for the premium. Insurers are required to verify their customers through the KYC process, which is mandated by regulations. Ensuring that these details are maintained properly will ensure consistency of policy data. Whether you want to purchase or renew your existing health insurance, knowledge of the necessary documents, verification and ways to submit your information could save you time in your KYC formalities.

Why Is KYC Mandatory While Purchasing Health Insurance?

KYC is meant to assist insurers in verifying the identity of the policyholder and relevant personal information. KYC requirements have been mandated by the Insurance Regulatory and Development Authority of India (IRDAI) through its applicable anti-money laundering and customer verification framework. These are not processes internal to insurers alone.

The following constitute the regulatory framework for KYC:

• IRDAI Master Circular on KYC/AML Norms
• Applicable Insurance Record Keeping Regulations
• Prevention of Money Laundering Act, 2002

According to the applicable regulation, KYC verification is to be completed prior to the issue of the policy.

How Does Updated KYC Benefit Policyholders?

KYC documents with updated information will help insurers ensure that their customers’ information is accurate and help verify identity at the time of servicing policies and claims. Inaccurate or outdated information might result in further investigation, leading to delays in verification.

Updating your information is, therefore, an essential step in the management of your health insurance policy.

What Documents Are Required for KYC for Health Insurance?

Insurers usually request documents that are accepted under the KYC process in question. The documents required may vary based on the type of verification process and the individual concerned.

What Documents Should You Prepare?

You might be required to provide different documents to establish your identity and prove your residential address based on the requirements of your insurer. The table below shows the documents required for health insurance KYC along with the essential criteria.

The Master Direction of RBI on KYC can serve as a reference for the OVD guidelines, provided that they are applicable. Additionally, insurance companies may seek more documents in accordance with their insurance policies and anti-money laundering regulations.

How to Avoid Making Mistakes With Document Verification?

Prior to uploading your documents:

• Make sure that your name matches what is stated in your policy.
• Make sure that the address is the same in all documents if necessary.
• Upload legible copies and ensure that you have met document validity and recency requirements.
• Verify that you do not need two identity proofs and one address proof for your particular situation.

What Is CKYC 2.0? Will it Help Simplify Health Insurance KYC Process?

Central Know Your Customer (CKYC) is a centralised database of customer KYC information. If the institution allows it, your KYC information will be taken from the central registry, where it has been stored before, and there is no need to submit the same documents again.

CKYC can help you speed up the process of onboarding, but it does not eliminate the necessity to verify the information.

Are You Required to Submit Documents for Every New Policy?

The insurance company may access your existing central KYC records subject to access, matching and verification conditions. However, if your information is incomplete or outdated or if there is any problem with verification, you will have to submit additional documents.

For the most recent regulatory guidelines and implementations, check IRDAI’s policyholder education site. 

When Must You Update Your Health Insurance KYC Information?

Your KYC information should be updated whenever there is any change in your information or whenever your insurer demands a re-KYC based on relevant requirements. You will not have to undergo the entire process again during renewals in case your information does not change and there is no requirement for any other verification.

What Kind of Changes Trigger a Re-Doing of KYC?

The following changes mean there is a need for an update of your details:

• Change in address: If your residential address changes.
• Change in name: If there is any legal change in your name, post-marriage or otherwise.
• Change in contact details: Your registered mobile number and/or email ID has changed.
• Document updation: Your identity or address proof gets either renewed or replaced.

Re-KYC timing will vary based on regulations in force, company procedures, and other factors. Clarify any deadline requirement for you personally from Niva Bupa, as it cannot be assumed that it is the same for all policyholders.

How Can Minor Children, Senior Citizens and NRIs Conduct KYC?

KYC requirements could differ based on the age of the policyholder, his place of residence and individual circumstances.

• Minor children: Parent or legal guardian conducts the KYC process on their behalf. Documents like a birth certificate and the minor's identity/address proof of the guardian would be asked for by the insurance company.
• Senior citizens: General document requirements would be in place in most cases. If the digital KYC process poses problems, clarify the availability of other ways, like branch-based processes, if available.
• NRIs: Passport may need to be submitted along with overseas address proof. Documentation would vary as per the requirements of the insurance company.

Please consult Niva Bupa for a specific document checklist.

How Can You Update Your KYC Information With Niva Bupa?

KYC updates are done by verifying your current information, gathering the relevant documentation, sending the documentation via any available medium, and ensuring that your insurance company updates their records. The following is how you can do it.

Step-by-Step Procedure for Updating Your KYC

This will depend on your request and how Niva Bupa is processing your update. Make sure you have all your policy details and relevant identity and address proofs before proceeding.

• First, review your information: Figure out what needs to be changed or updated.
• Second, prepare your documents: Get ready with all necessary identity and address proofs.
• Third, select the available channel: See if Niva Bupa allows you to make your request via its website, mobile app, branch or email.
• Fourth, provide your information: Fill out the relevant form and follow the instructions of the insurance company.
• Fifth, confirm your update: Make sure you have the acknowledgement letter and check that your updated information is reflected in the insurer’s system.

How Much Time Will It Take You to Update Your KYC Information?

It may take some time depending on the verification process and the insurer’s procedures. Submit your request in advance and avoid last-minute submission. If there is a delay in confirmation, feel free to contact the insurer through its official customer care portal.

What Can Go Wrong if You Don't Renew your KYC?

Inconsistencies or outdated information may result in further verification of details while servicing a policy, renewal or claims processing. Prompt action upon request to update your documentation would reduce the chances of any unnecessary delay.

But outdated KYC does not necessarily imply rejection of health insurance claims; the result largely depends on the situation and terms of the specific policy.

Conclusion

Maintaining your KYC data up-to-date is a significant step in handling your health insurance policy. Check your personal information from time to time, make changes when there is any change in your name or contact information, and make sure that your supporting documents are valid. Prior to updating your data, be aware of the requirements for KYC as well as available options for submission by Niva Bupa.

FAQs on KYC for Health Insurance

1. Is KYC mandatory for all health insurance policies?

According to IRDAI, there is a need for verification of KYC before issuing a health insurance policy. Failure to complete verification could hinder issuance of the policy.

2. What documents would be required for health insurance KYC? 

Aadhaar, PAN, Passport, Voter ID, or Driving Licence are some of the commonly used documents in the health insurance KYC process.

3. Is it possible to conduct health insurance KYC procedure online?

It might be possible on the website or application of an insurance company. Find out about the procedure from the latest guidelines of Niva Bupa.

4. Do I require a new central KYC record when switching to a different insurer?

It depends on the insurer because they may have a chance to access the existing central KYC record.

5. What if my health insurance KYC update is not confirmed?

In this case, you need to contact Niva Bupa to find out whether you require any additional documents and what else you should do.

Disclaimer: This article gives general information related to compliance and does not provide legal advice. The KYC process is regulated by the IRDAI guidelines on maintaining records of insurance business, the Prevention of Money Laundering Act, 2002 and other regulations. Please verify the latest information either from Niva Bupa or IRDAI.