Health insurance renewal without Aadhaar cannot be denied till March 31

Is your health insurance policy up for renewal before the quarter ending March 31? And did the insurance agent or official ask you to mandatorily furnish your Aadhaar number when you went to get the policy renewed?

Well, you are not alone. There have been instances where health insurance policyholders have been asked to provide their Aadhaar card number at the time of renewing their policies.

However, in a circular issued by the insurance regulator to all insurance companies, the date by which policyholders have to submit their Aadhaar and PAN numbers to the insurers has been mentioned as March 31, 2018. So, if you are asked to furnish your Aadhaar while renewing your insurance policies before March 31, you can cite the Insurance Regulatory and Development Authority of India's (IRDAI) stand on it. The circular can be read here.
(https://www.irdai.gov.in/ADMINCMS/cms/whatsNew_Layout.aspx?page=PageNo3342&flag=1)

Dhruv Sarin- Head of Health Insurance, Policybazaar.com informs, "As of now, Aadhaar number is not mandatory to renew your health insurance policy." But can the insurer still refuse to renew your health insurance policy without your Aadhaar number if the renewal date falls before March 31, 2018? "No, it cannot refuse to renew your health insurance policy if you have not yet updated or linked your Aadhaar number," says Sarin.

IRDAI cites the central government's gazette notification on December 13 relating to Prevention of Money-Laundering (Maintenance of Records) (Seventh Amendment) Rules, 2017.

Earlier on November 8, 2017, the IRDAI had directed insurers to link Aadhaar and Pan Card numbers of policyholders with their insurance policies by December 31, 2017, which was the earlier deadline. Now, the deadline has been extended to March 31, 2018. It is to be noted that the matter has been challenged in the Supreme Court and the final verdict, which is still awaited, may impact the government directive.

However, if the government directive stands and it does not extend the deadline, the policy benefits may stand inaccessible post that date. The policy benefits will be suspended until Aadhaar gets linked. Therefore, it is better that you get it done soon.

It is highly important for the policyholder to make sure that the policy gets renewed on the due date (within the grace period) as any break in the policy will mean that the accrued benefits on the policy will be lost. "It is suggested to link your Aadhaar with your health insurance policy at the earliest to avoid any delay at the time of claim," says Sarin.

Here is how you can link Aadhaar to your insurance policy:

Online linking
As a policyholder, you can login to the customer service portal of the insurance company and add your Aadhaar details to your profile. But if you are not a registered online customer, you need to register and then complete the process. For registration, the policyholder will have to furnish details such as policy number, date of birth, PAN, email address, mobile number, and Aadhaar number. Once the Aadhaar number is furnished, a one-time password (OTP) will be sent to your registered mobile number. Once the OTP is entered, the Aadhaar number is successfully submitted. The insurer will then take couple of days to notify you, either by email or SMS, that the linking process is complete.

Offline linking
Policyholders can approach their insurance agents or visit the nearest branch office of the insurance company with their Aadhaar card to complete the linking process. You need to furnish a self-attested copy of your Aadhaar to complete the process. The insurance company will take a few days to complete the linking.

What if one doesn't have Aadhaar
In case someone does not have an Aadhaar, Mahavir Chopra, Director - Health, Life & Strategic Initiatives, Coverfox.com, an insurance broker, explains what you should to: "Insurers will evaluate cases where Aadhaar number is unavailable on a case to case basis and take exceptions, while recording the reasons for customers not having an Aadhaar number. The other alternative is that the customer can share the Aadhaar enrollment number for the time being with the insurer."