HDFC Life Insurance is strengthening its policy verification process to ensure total compliance with Know-Your-Customer (KYC) norms.
This follows a sting operation by online magazine Cobrapost, which alleged that top banks and their insurance affiliates launder money as part of their standard operating procedures.
“Effective May 1, we are moving towards verification of customers across all our channels, which will mean it may slowdown our business since it will take some more time to verify. Right now, we just contact the customer (to sell a policy), but now unless the policy is verified, we will cancel the policy in a short period of time,” said Amitabh Chaudhry, MD and CEO, HDFC Life.
The Insurance Regulatory and Development Authority has inspected the insurer, and is expected to table a report soon, said Chaudhry.
HDFC Life reported a net profit of Rs 451 crore in FY13, with a focus on increasing renewal premium and reduction in operating expenses. The life insurer recorded 11 per cent growth in total premium income.
The company said unit-linked insurance plans contributed 61 per cent to the total turnover, while traditional products contributed to the remaining 39 per cent.
In line with the product revamp regulations released by IRDA in March, HDFC Life is currently in the process of filing several products with the regulator.