The Insurance Regulatory and Development Authority (Irda) has warned insurance companies for concluding contracts with "high risk customers", particularly the "proposals of Politically Exposed Persons (PEPs)".
Insurers should work out procedure in order to ensure that proposals for contracts with high-risk customers are concluded after approval of senior management officials. However, it is stressed that proposals of Politically Exposed Persons (PEPs) in particular, require approval of senior management, not below head (underwriting)/chief risk officer level, the regulator stated in a circular issued on Tuesday.
Irda stated that while carrying out the know-your-customer (KYC) norms, special care has to be exercised to ensure that the contracts were not anonymous or under fictitious names.
Insurers should work out procedure in order to ensure that proposals for contracts with high-risk customers are concluded after approval of senior management officials. However, it is stressed that proposals of Politically Exposed Persons (PEPs) in particular, require approval of senior management, not below head (underwriting)/chief risk officer level, the regulator stated in a circular issued on Tuesday.
Irda stated that while carrying out the know-your-customer (KYC) norms, special care has to be exercised to ensure that the contracts were not anonymous or under fictitious names.
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