On 08th November 2017, IRDA (Insurance Regulatory And Development Authority of India) issued a Circular No.IRDAI/SDD/MISC/CIR/248/11/2017 that linking your Aadhar No. and PAN is mandatory with all your insurance Policies. Read this Circular is as below :
"Central Government vide gazette notification dated 1st June 2017 notified the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aaadhar and PAN/Form 60 mandatory for availing financial services including Insurance and also for linking the existing policies with the same.
The Authority clarifies that, linkage of Aadhaar number to Insurance Policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017.
These Rules have statutory force and, as such, Life and General Insurers (Including Standalone Health Insurers) have to implement them without awaiting further instructions".
Why it is became so important to all policy holder? It is just to save your investment from any future fraud. We have to understand the importance to link Aadhar to LIC Policies and Linking of PAN to all Insurance Policies you are having.
However the question is, How to link Aadhar No. to LIC Policies? Neither IRDA nor LIC company provided any facility to link their policies with Aadhar. Though there are two ways that you can link your Aadhar no with your insurance policies.
1. Link Aadhar / PAN while buying New Policy:
If you are planning to buy any new insurance policy then there are facility to link your Aadhar No. along with your PAN by providing a self attested copy with new proposal form.
Therefore who are buying new LIC products should no need to bother now. The process will be completed by LIC itself before issuing a new policy to you.
2. Link Aadhar / PAN to existing LIC Policies:
As I told you, as of now LIC did not came up any online linking facility to existing policies. However you can visit your branch and link Aadhar & PAN to LIC Policies. Do remember to get an acknowledgement of the same.
LIC has the main problem that they don' have any centralized system to manage all policies and customer. It will be little problematic if you have policies from different branch but if it is from same branch then it will be easy.
You can make a list of all your policies with other details like Insured Person Detail, Premium (without tax) along with a letter and self attested Aadhar copy along with PAN/Form 60 (If not provided earlier) and put request to the concerned authority/ agent to do the same.
What is Form 60?
Form 60 is a self declaration provided as per requirement & filled by those individuals or person who does not have a PAN ( Permanent Account Number) and who enters into any transaction specified in Rule114B.
Who Require to provide Form 60?
Some person who have insurance policies but they do not earn as per Income Tax threshold limit then they can provide Form 60.
Before signing the declaration, this declarant should satisfy himself that the information furnished in this form is True, Correct and Complete in all respects. Any person making a false statement in the declaration shall be liable to prosecution under section 277 of the income tax act,1961 and on conviction be punishable.
This post first appeared on Save Tax Save Money With Life Health Insurance, please read the originial post: here