CRM Department, Central Office.

5th Floor (Link), “Yogakshema”,

Jeevan Bima Marg, P.O.Box No.19953,
Mumbai – 400 021.
Tel : 66598353, Fax : 22825829
E-mail : co_crm@licindia.com
__________________________________________________________________________________
Ref: CO/CRM/914/23 August 20, 2013

The Zonal Managers,

All Sr/Divisional Managers,
Management Development Centre,
Audit & Inspection.

Re: Submission of additional requirements out of proof of identity/ residence at the

point of delivering different policy services

As per present AML/ KYC guidelines, policyholder is required to submit proof of residence,
proof of identity and income proof while entering into the new insurance contract. Under
the Prevention of Money Laundering Act, 2002 , LIC is required to report certain financial
transactions to Financial Intelligence Unit-India (FIU-IND). Apart from this, we are not
obtaining any KYC/ AML requirements at the time of rendering different policy services
during the term of the policy.

On analyzing the complaints received and vigilance cases registered at our end, it has been
observed that rendering various policy services without verification of true identity of life
assured/ claimant has resulted into financial loss to the Corporation in following ways:-

1. Wrong and fraudulent policy payments had occurred due to forged documents.

2. Issue of fake policy document and subsequent transfer of title under the policy.

3. Misuse of policy data by unrelated persons.

Frauds pose a serious risk and can affect the reputation of our organization. Taking into
account, the above aspects and to prevent frauds under the policy, it has been decided to
call for document of proof of identity/ residence (as applicable) whenever there is a
request for services. This document will be required in addition to usual requirements of
policy servicing.

We are giving below the chart which will show detailed information about nature of policy
service request, present list of documents required for processing policy request/ payment,
additional requirements as a proof of identity or residence.

1
Chart showing additional documents of proof of identity/ residence to be submitted at
different policy servicing requests or at policy payments

A) Non-financial functions

No policy servicing Present rules for calling Additional documents to be

function documents to process called
request
1 Change of a) Application to change of a) Where change of address
address address from policyholder. involves shift from one town/
b) Signature of the LA on place of residence to another
application is required to one, then proof of residence
be tallied with policy showing new address should be
records. submitted.
b) Where change of residence will
involve only minor change like
name of building, road, flat no
etc, then proof showing change
in address effected in gas
agency, Bank pass book, ration
card etc can be accepted.
Needless to add that any
document from other proof of
residence may be accepted.
c) If any correction in address is
being effected due to mistake in
capturing data, then proof is not
required provided the same has
been submitted at earlier stage.

2 First/ change of Application for nomination Proof of identity of life assured who
nomination along with original policy effect the nomination
document

3 Assignment/ Application for assignment/ Proof of identity of life assured while

reassignment reassignment along with doing assignment.
original policy document

4 Revival of lapsed With or without any evidence If policy is revived on the strength of
policy of health and amount of DGH only, then proof of identity from
revival. life assured.

HRDesai
No policy servicing Present rules for calling Additional document to be called
function documents to process
request
5 Issue of duplicate Application, indemnity bond, If duplicate policy is issued to
policy or proof of residence and proof of individual, proof of identity and proof
settlement of claim identity, duplicate policy of residence should be obtained from
without original preparation charge. applicant.
policy document
If the duplicate policy is being issued
to institution like HUF, proposer,
under key man, MWP act, authority
letter issued by institution on letter
head of institution stating the name
and designation of the person/ official
authorised for complying the
requirements for issue of duplicate
policy should be received.

If duplicate policy is issued to

assignee, then along with above
requirements, copy of letter sent by
assignee to life assured informing
about issue of duplicate policy should
be received.

6 Alteration in policy Application for alteration, Proof of Identity should be obtained

by way of change policy document for from the applicant who opts for
in plan/ term/ sum endorsement, alteration fee alteration.
assured
If policy is assigned , then copy of
letter addressed by assignee to life
assured informing about proposed
alteration should be insisted.
7 Other alterations- Application for change in Proof of identity should be obtained
mode who opts for alteration.

If policy is assigned , then copy of

letter addressed by assignee to life
assured informing about proposed
alteration should be received.
8 Transfer of policy Application for transfer If NEFT master is not present, then
records either proof of residence, or NEFT
mandate or mobile no details.
If policy is assigned , then copy of
letter addressed by assignee to life
assured informing about transfer of
policy should be received.

3
B) Financial functions

No policy servicing Present rules for calling Additional documents to be called

function documents to process
request
1 Loan / further loan Loan application, original a) If payment is being settled through
payment policy document in case of cheque or cash mode, then proof of
first loan, NEFT mandate identity of policyholder should be
obtained.

b) If loan is settled to individual entity

other than life assured (i.e assignee/
trustee/ karta), then proof of identity of
the individual to whom payment is
being made should be obtained.

c) If the payment is being settled to

institution, then copy of resolution who
is authorised to give discharge to loan
and proof of identity of such person.
2 Surrender payment surrender application and If payment is being settled through
discharge form, original cheque mode, then proof of identity of
policy document , NEFT life assured should be obtained.
mandate
If surrender is paid to individual entity
other than life assured, then proof of
identity should be obtained of the
person to whom payment is being
made.

If the payment is being made to

institution, then copy of resolution
authorising person to give discharge for
surrender receipt and proof of identity
of such authorised person.
3 SB/ Maturity Discharge form, original If payment is being settled through
payment policy document, NEFT cheque mode, then proof of identity of
mandate. life assured should be obtained.

If claim is paid to individual entity other

than life assured, then proof of identity
should be obtained of the individual for
whom payment is being made./
If the payment is being made to
institution, then copy of resolution
authorising person to give discharge for
SB/ Maturity receipt and proof of
identity of such authorised person.

HRD
 No policy servicing Present rules for calling Proposed KYC/ AML
function documents to process request documents to be called
4 Death payment Discharge form, claim forms, Since, death claim payment is
original policy document, NEFT being to nominee or legal
mandate heirs, proof of identity and
residence of each claimant
should be obtained.
If claim is paid to individual
entity other than life assured,
then proof of identity should be
obtained of such individual for
whom payment is being made.

If the payment is being made

to institution, then copy of
resolution authorising person
to give discharge for death
receipt and proof of identity of
such authorised person.

The other instructions in respect of calling additional requirements of proof of identity/ residence are
as follows:-

1. The provisions of this circular will be applicable w.e.f. 1/10/2013.

2. Proof of identity/ residence, as applicable will require to be submitted at each point of

rendering the policy service. If two or more policy services are requested at one time, then
proof of identity/ residence is to be submitted only once.

3. While issuing quotations, sending intimation letters for claims or while sending the requirement
letters for policy servicing requests, each servicing unit should specifically mention about
submission of the requirement of proof of identity / residence. Proper care should be taken to
put the rubber stamps on such communication. We will advise SDC to print the message to this
effect on all quotations/ letters generated through module.

4. While taking the RFM for various policy requests, data entry for type of document collected
should be made. These documents should be sent for incremental scanning.

5. Zonal office to issue instructions regarding wide publicity of the revised procedure by way of
displaying boards in Branches, Satellite offices and Mini offices.

6. All Branch-in-charge should explain the details and importance of submission of these
requirements to our field force at appropriate meetings.

All offices are requested to take proper note of the above changes and issue proper instructions to all
offices under their control.

Executive Director (CRM)

5

HRD
 Chart showing list of Proof of identity and proof of Residence

Features Documents
Insurance Contracts with i. Passport
individuals ii. PAN Card
• Proof of Identity iii. Voter’s Identity Card
iv. Driving License
v. Letter from a recognized Public Authority (as defined under
Section 2 (h) of the Right to Information Act, 2005) or Public
Servant (as defined in Section 2(c) of the ‘The Prevention of
Corruption Act, 1988’) verifying the identity and residence
of the customer
vi. Personal identification and certification of the employees of
the insurer for identity of the prospective policyholder.
vii. Job card issued by NREGA duly signed by an officer of the
state government.*
viii. The letter issued by AADHAR containing details of name,
address and Aadhar number.*

• Proof of Residence i. Telephone bill pertaining to any kind of telephone

connection like, mobile, landline, wireless, etc. provided it
is not older than six months from the date of insurance
contract
ii. Bank account statement wherein his permanent/present
residence address is available, provided it is not older than
six months as on the date of acceptance
iii. Letter from any recognized public authority
iv. Electricity bill
v. Ration card
vi. Valid lease agreement along with rent receipt, which is not
more than three months old as a residence proof.
vii. Employer’s certificate as a proof of residence (Certificates
of employers who have in place systematic procedures for
recruitment along with maintenance of mandatory records
of its employees are generally reliable)
• Proofs of both
Identify and i. Written confirmation from the banks where the prospect is a
Residence customer, regarding identification and proof of residence.
ii. Current passbook with details of permanent/ present
residence address( updated upto the previous month) and
current statement of bank account with details of
permanent/ present residence address( as downloaded)
wherein written confirmation from banks need not be
insisted upon.