Is it mandatory to link all LIC policies with Aadhaar?

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Aadhaar has become one of the most important documents nowadays, especially for financial transactions and compliances. This 12-digit number is linked to almost everything from Employees Provident Fund account to PAN. It should also be linked with your bank account should you need any direct cash assistance from the government.

However, there is some confusion regarding linking of Aadhaar numbers with LIC policy.

Not mandatory

Is linking of all LIC’s policies with Aadhaar mandatory? The government is emphasizing on linking Aadhaar numbers with insurance policies. But till now, it is not mandatory as far as LIC is concerned, at least not for all policies.

If any customer wants to submit Aadhaar as one of the KYC documents, he or she is certainly welcome, said Kanchan Dasgupta, a senior business associate of LIC. However, there are some exceptions.

Exception

However, for a few policies such as Aadhaar Stambh and Aadhaar Shila, the Aadhaar number is mandatory. If any person wants to buy these policies he or she has to submit the Aadhaar number. “Compared to other LIC policies, the premiums of these policies are quite low and benefits are also very attractive,” said Dasgupta.

Supreme court verdict

It may be recalled that the union government had made it compulsory to link Aadhaar with insurance policies. But in September 2018, the Supreme Court ruled against the government decision. According to the apex court’s ruling, Irdai also changed its rule.