Fake message alert! LIC cautions policyholders against linking Aadhaar via text message

State-owned LIC of India has cautioned policyholders against linking their Aadhaar number with policies through an SMS message. LIC on its website posted a notice, expressing concern regarding the matter. 

The insurance company claims that some messages have been circulating in social media-with the LIC emblem and logo-asking policyholders to link their Aadhaar number by sending SMS to designated number.

Asking subscribers not to belive such texts, LIC said that it has not operationalised any such facility to link the unique identity number with policies.

"Our attention is drawn to some messages circulated in social media with our emblem and logo asking policyholders to link their Aadhaar number by sending SMS to designated number," Life Insurance Corporation of India (LIC) said in a public notice.

The notice further added that as and when LIC will enable linking of Aadhaar number with policies through SMS, its website will be duly updated with this option.

"LIC of India informs the public and policy holders that no such message has been sent by LIC. Also, no facility to link Aadhaar number to policies is available through SMS in LIC. As and when LIC will enable linking of Aadhaar number with policies through SMS, our website will be duly updated of this option," reads the notice.

Earlier this month, Insurance Regulatory and Development Authority of India (IRDAI) made it mandatory for citizens to link existing policies with Aadhaar. Individuals will also need their Aadhaar number for buying a new policy.

The central government on June 1, 2017 notified the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aaadhar and PAN/Form 60 mandatory for availing financial services including insurance and also for linking the existing policies with the same.

"These rules have statutory force and, as such, life and general lnsurers (including standalone heallh insurers) have to implement them without awaiting further instructions," said IRDAI.

Earlier, IRDAI had said that authentication of policyholders or clients by insurance companies using Aadhaar number will be on a voluntary basis and with their consent.

The move comes after the Reserve Bank of India (RBI) had said that bank accounts must be linked to Aadhaar.

Though the Supreme Court said that Aadhaar is not illegal and privacy not absolute, a final judgment on the need to make Aadhaar mandatory is still awaited. So if government has the final say, then bank accounts that are not linked to Aadhaar will become in operational from January 1, 2018.

(With inputs from PTI)