To

All the Life Insurers

Dear Sir/Madam,

Guidelines on Anti-Money Laundering Programme for Insurers

Please refer to “Guidelines on Anti-Money Laundering Programme” which became effective from 1 st August 2006 , wherein collection of photograph on all new insurance contracts was made mandatory.

• We have received representation from the Life insurance companies and Life Insurance Council that the compliance with the requirement is proving difficult apart from adding to the costs, especially in case of low value products. The matter has been examined by the Authority in the specific context of hardships in complying with this KYC requirement by small value policyholders with possible implication for the spread of insurance into rural and low-income domains, especially the micro insurance sector. The Authority, has since decided to provide exemption upto a total Annual Premiumof Rs.10000/-on all the life insurance policies held by a singleindividual from the requirement of recent photograph and proof of residence.

• We also advise that the suggestion of the insurers to obtaining of a photo identity card (of an official entity) with the photo in-lieu of a recent photograph has been examined, but it has not been possible to accede to.

• Insurers are advised to take note of the above modifications and ensure compliance with the framework in entirety.

Yours faithfully,


(C. R. Muralidharan)
Member