Know Your Customer (KYC)

Know Your Customer (KYC) is basically all you need for any LIC policy. In fact, KYC is all you need to avail any govt. Benefit or apply in any scheme, open a bank account, etc.

So what is KYC? It is an acronym for Know Your Customer. It comprises of basic information like your name, age, gender, father/husband’s name, address, and identity proof. For a detailed KYC, you will also have to furnish information about your income, occupation, and investment portfolio (if any).

What documents do you need for a KYC form? For a detailed KYC, you will need to submit the following documents:

KYC Documents Required for LIC Policy:

  1. Self Attested Photograph
  2. Age Proof: (school certificate, passport, PAN card, driving license)
  3. Residence proof (ration card, election card, electricity bill, water bill, telephone bill, credit card bill, bank passbook, driving license, rent agreement, passport, etc)
  4. The photo ID proof (PAN card, D/L, passport, election card, Ration card & bank passbook with the proposer’s photograph on it)
  5. Income proof (salary slip, form 16, Income tax returns, pension passbook etc) (If total Premium Exceeds one lakh)

What are the Types of KYC?

There are 2 types of KYC.

  • Aadhaar based KYC (eKYC)
  • Offline KYC or In-Person-Verification (IPV) KYC.

eKYC is an electronic process of verification using an Aadhaar number.

The aadhaar number is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI). The eKYC process involves the user submitting his/her Aadhaar number and biometric data (fingerprints and iris scan) for authentication. The data is then matched with the UIDAI database. If the authentication is successful, the user’s KYC is complete.

IPV KYC, on the other hand, requires the user to visit a KYC center in person and submit physical documents for verification.

Update: Aadhaar or PAN card is officially the most important document for any financial transaction/policy.

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