LIC cautions against use of SMS to link Aadhaar with policies

Life Insurance Corporation of India (LIC) has cautioned policyholders against sharing their Aadhaar numbers through SMS saying it has not operationalised any such facility to link the unique identification number with policies.

In a notice on its website, the state-owned insurer said the corporation is working with technology partners to enable linking of Aadhaar number with policies and that its website will be duly updated with the SMS option as and when the process is completed.

"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.

Till such facility is provided, LIC has cautioned policyholders against sharing their Aadhaar number through SMS.

"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.

However, the notice said that insurance sector regulator Insurance Regulatory and Development Authority of India (IRDA) has said linkage of Aadhaar number with insurance policies is mandatory.

Earlier this month, IRDAI made it mandatory to link insurance policies with the unique identity number Aadhaar. The deadline for this is 31 December 2017, and the threat of withheld claims has galvanised policyholders into action.

Given that there are reportedly 24 life insurance companies and 33 general insurers, the scope for widespread fraud snowballs. "Please be aware that financial institutions will never ask for any sensitive information, including OTPs, over the phone," LIC cautioned.

The easiest option for linking Aadhaar number to policies is to login to the customer service portal of the insurance company concerned and key in the relevant details. Non-registered users simply have to fill up a registration form first to generate their login ID. Alternatively, policyholders can approach the insurance agent or the nearest branch office directly with a self-attested copy of the Aadhaar card.