Mandatory KYC leads to 30-50% dip in demand for motor insurance from agents

Mandatory KYC leads to 30-50% dip in demand for motor insurance from agents

Shine Jacob Chennai

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Sunil Kumar Singh from Varanasi has been working in the insurance sector as an agent for the past three decades. Prior to 2023, Kumar used to do an average of 20 motor insurance policies a day, but that came down to 12-13 a day after the Insurance Regulatory and Development Authority of India (IRDAI) made Know-Your-Customer (KYC) norms mandatory from January 1. This was made applicable for the purchase of all new insurance policies, irrespective of their premiums.
Singh and his family offer the services of several insurance companies, including New India Assurance, Future Generali, Shriram General Insurance, ICICI Lombard, Bajaj Allianz and Iffco Tokio. According to him, there is a similar rate of reduction in motor insurance offered by his family members too. This is not the case with Singh--several insurance agents and a section of the companies that Business Standard spoke to indicated that after KYC documents were made mandatory for buying new health, motor,

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First Published: Jan 29 2023 | 1:46 PM IST

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