A Quick Guide to AML - KYC Guidelines
for Customers (August 2022)

KYC or "Know Your Customer" refers to the process of verifying the identity and address of customers opening accounts with banks, financial institutions, and other entities. In India, KYC guidelines are regulated by the Reserve Bank of India (RBI) and enforced by banks and other financial institutions. The main objective of KYC in India is to prevent identity theft, fraud, and money laundering.

To establish their identity and address, customers must provide official documents such as an Aadhaar card, passport, voter ID card, PAN card, driving license, or NREGA job card. These documents are verified by banks or financial institutions before opening an account or issuing a credit or debit card. KYC has become mandatory for buying life insurance or any other type of insurance policy, opening a bank account, investing in mutual funds, and even using digital payment services in India.

The full form of KYC is Know Your Customer.

In insurance, KYC involves gathering and verifying personal information, such as name, address, PAN, date of birth, and government-issued identification documents.

This process helps one comply with regulatory requirements, prevents fraud and protects the insurance company and its customers. By verifying the customer's identity and other relevant information, the insurance company can ensure that the policy is issued to the right person and that the policy terms are appropriate for the customer's needs.

Yes, KYC is mandatory for purchasing a life insurance policy, and the insurance companies are required to adhere to the guidelines set by the Insurance Regulatory and Development Authority of India (IRDAI) for the KYC process. The latest guidelines of AML\ KYC were issued in August 2022

Any 1 of the following 7 proofs can be submitted as Address and ID proof. Additionally, Pan details are also mandatory.

• Aadhaar copy (Masked)
• Valid Passport copy²
• Valid Driving License² copy
• Voter ID copy
• Letter Issued by UIDAI copy
• National Population Register copy
• Job Card by NREGA copy
• OCI / PIO Card (if applicable)

No, only one of the proof is sufficient to validate Address Proof of customer, it can be either for Permanent or Current Address. Refer documents list for NRI\OCI\PIO listed in the first section

You are required to provide the new proof post expiry date. E.g. If passport or Driving license copy has been submitted, you are required to submit the updated copy post expiry

Yes, It is mandatory to copy of Pan. This will ensure that TDS is rightly deducted where applicable. In case you do not have a Pan copy, you may also submit Form 60.

If KYC and Pan details are not updated, it would impact smooth functioning of your policy. Any Policy benefit \ payout due will be held back.

KYC, or Know Your Customer, is needed by financial institutions, banks, and insurance companies to identify and verify the identity of their clients. This can help them prevent financial crimes and other illegal activities while maintaining an updated customer record.

These are the two important benefits of KYC:

• Lowering Risks - KYC helps financial institutions and businesses identify and verify their customers, which reduces the risk of identity theft, fraud, money laundering, and other financial crimes.
• Regulatory Compliance - By implementing KYC processes, financial institutions can ensure compliance with regulations and laws, which helps to prevent penalties and other legal consequences.

• Insurance cover is available under the product.
• The products are underwritten by Tata AIA Life Insurance Company Ltd.
• The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
• For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
• L&C/Advt/2023/Dec/4307