Taking multiple insurance policies? You can no longer hide this from other insurers

Sharing of customers’ financial information will be on the basis of their prior consent and the data must be shared only with regulated entities.

Around 359 million Indians were covered under government-sponsored health insurance schemes in fiscal year 2018, as per Statista. This number is expected to reach over 526 million by fiscal year 2030. It is apparent that awareness about the significance of taking insurance cover is growing among Indians. However, there is a limited number of insurance policies that an individual can take. In order to make sure that an individual doesn’t take excess insurance cover, he/she is asked to give all details regarding insurance policies that have been taken from the same, or other, insurers during the time of applying for a new policy.

Many individuals think that it is unnecessary to fill such details in their application forms. Some may even intentionally refuse to provide such information for unlawful gains.

However, it will now be difficult to hide such information due to the inclusion of insurance in the account aggregator system. All information related to insurance is electronically available at one place under this feature. The Insurance Regulatory and Development Authority of India (IRDAI) has provided guidelines to insurance firms on how they can share data regarding insurance with account aggregators.

Entities that are sharing and receiving information will utilise Application Programming Interface (APIs) for integrating with Account Aggregators’ system.

Sharing of customers’ financial information will be on the basis of their prior consent and the data must be shared only with regulated entities. Also, the insurers have been advised by IRDAI to make sure that the data remains protected while they are sharing information with account aggregators. These measures ensure the protection of customers’ interests.

According to Conjeevaram Baradhwaj, Executive Vice President and Company Secretary at Future Generali India Life Insurance Company Ltd, the Reserve Bank of India (RBI) has created a framework of RBI-registered account aggregators already. He added that the account aggregators are authorised for gathering information on customers’ financial assets, such as the details of bank deposits, mutual funds, savings accounts, pension funds, insurance policies, etc.

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