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About 359 million Indians were covered by government-sponsored health insurance schemes in fiscal year 2018, according to Statista. This number is expected to reach over 526 million by FY2030. It is evident that Indians are increasingly aware of the importance of getting insurance. However, there are a limited number of insurance policies an individual can take out. In order to ensure that an individual does not take out excess insurance cover, he is asked to give full details of insurance policies that have been taken out with the same insurer or other insurers at the time of request for a new font.
Many people think that it is not necessary to fill in these details in their application forms. Some may even intentionally refuse to provide such information for illegal gain.
However, it will now be difficult to hide this information due to the inclusion of insurance in the account aggregation system. All insurance related information is available electronically in one place under this feature. The Insurance Regulatory and Development Authority of India (IRDAI) has provided guidelines for insurance companies on how they can share insurance data with account aggregators.
Entities that share and receive information will use the Application Programming Interface (API) to integrate with the account aggregators system.
Sharing of customers’ financial information will be based on their prior consent and data should only be shared with regulated entities. Additionally, insurers have been advised by IRDAI to ensure that data remains protected while sharing information with account aggregators. These measures ensure that the interests of customers are protected.
According to Conjeevaram Baradhwaj, Executive Vice President and Corporate Secretary of Future Generali India Life Insurance Company Ltd, the Reserve Bank of India (RBI) has already established a framework of RBI registered account aggregators. He added that account aggregators are allowed to collect information about clients’ financial assets, such as details of bank deposits, mutual funds, savings accounts, pension funds, insurance policies. insurance, etc