The Insurance Regulatory and Development Authority of India (IRDAI) has introduced its own framework for video-based policyholder verification, referred to as the Video-Based Identification Process (VBIP). While drawing on the principles established by the RBI's V-CIP framework, IRDAI's VBIP has distinct requirements tailored to the unique needs of the insurance sector -- from underwriting due diligence to claims verification and policy servicing. This guide breaks down what insurance companies need to know and implement.
IRDAI's VBIP Framework: Origins and Scope
IRDAI's push toward video-based verification emerged from two converging pressures. First, the rapid growth of digital insurance distribution -- through aggregator platforms, direct-to-consumer websites, and mobile-first insurers -- created a mismatch between the speed of policy issuance and the pace of identity verification. Second, fraudulent claims linked to identity misrepresentation cost the Indian insurance industry an estimated INR 30,000 crore annually, underscoring the need for more robust verification at the point of onboarding.
The VBIP framework applies to all life insurance, general insurance, and health insurance companies regulated by IRDAI. It covers new policyholder onboarding, beneficiary verification for high-value policies, and identity re-verification during claims processing where the insurer has reason to verify the claimant's identity. Unlike the RBI framework, which is narrowly focused on account-opening KYC, IRDAI's VBIP encompasses the full policy lifecycle.
IRDAI has positioned VBIP as an alternative to physical medical examination verification and in-person proposal form verification, not as a replacement for the underwriting process itself. The video session captures identity verification data that feeds into the insurer's underwriting decision, but the underwriting assessment remains a separate, downstream process.
Key Differences from RBI's V-CIP
While both frameworks involve live video interaction with a trained official, several important differences set IRDAI's VBIP apart. First, the scope of verification is broader. During a VBIP session for life insurance, the official may need to verify not only the proposer's identity but also capture health-related declarations, confirm the nominee's relationship, and verify income documentation for high sum-assured policies. This means VBIP sessions tend to be longer and more structured than banking V-CIP sessions.
Second, IRDAI permits a wider range of officials to conduct VBIP. While RBI restricts V-CIP to authorized officials of the regulated entity itself, IRDAI allows trained representatives of the insurer, including employees of corporate agents and authorized intermediaries, to conduct VBIP -- provided they meet the prescribed training and certification requirements. This reflects the insurance industry's reliance on distributor networks for customer acquisition.
Third, the document verification requirements differ. Insurance VBIP requires verification of the proposer's age proof (critical for life insurance pricing), address proof, identity proof, and income proof for policies above certain sum-assured thresholds. The RBI's V-CIP, by contrast, focuses primarily on PAN and Aadhaar verification for identity and address. Insurance companies must build workflows that accommodate this broader document set within the video session.
Requirements for Life Insurance vs General Insurance
Life Insurance VBIP
For life insurance, VBIP serves a dual purpose: identity verification and pre-underwriting data capture. The video session must confirm the proposer's identity against their PAN and Aadhaar, verify age proof documentation (birth certificate, passport, or school leaving certificate for policies where age is a critical pricing factor), capture the proposer's declaration of health status, and for policies with a sum assured exceeding INR 50 lakh, verify income documentation. The official must also confirm that the proposer understands the key policy terms, including the free-look period, premium payment schedule, and exclusion clauses. This "suitability confirmation" requirement is unique to IRDAI and has no equivalent in the RBI or SEBI frameworks.
General and Health Insurance VBIP
For general and health insurance, the VBIP requirements are lighter. Identity verification through PAN and Aadhaar remains mandatory, but the document set is smaller -- age proof and income proof are typically not required. For motor insurance, the vehicle registration certificate (RC) may need to be verified during the session. For health insurance, the proposer's declaration of pre-existing conditions must be captured on video. General insurance VBIP sessions are consequently shorter, typically lasting 5-8 minutes compared to 10-15 minutes for life insurance.
Policyholder Verification Process
The IRDAI-prescribed VBIP workflow follows a structured sequence. The proposer initiates the process through the insurer's digital platform (website, app, or aggregator partner). They upload or capture images of required documents before the video session. A trained official initiates the live video call, during which they confirm the proposer's identity by comparing the live face against the photograph on the submitted identity documents.
The official then verifies each document by asking the proposer to hold it up to the camera, while the system performs OCR-based data extraction and cross-verification against the pre-submitted information. For life insurance, the official walks through the health declaration and suitability confirmation. The system captures a live photograph of the proposer and records the entire session with timestamps.
Post-session, the verification record is routed through the insurer's approval workflow. A compliance officer or designated authority reviews the session recording and supporting documentation before the policy is issued. IRDAI requires this maker-checker process to ensure no single individual can both conduct and approve a verification. The complete audit trail -- video recording, document images, OCR outputs, and approval chain -- must be retained for the duration of the policy term plus five years.
Technology and Data Storage Requirements
IRDAI mandates specific technology standards for VBIP implementation. The video session must use end-to-end encrypted communication channels. Video quality must be maintained at a minimum of 720p resolution throughout the session. The system must include liveness detection to prevent pre-recorded video or photograph-based spoofing. Face-matching algorithms must achieve a minimum accuracy threshold, with periodic third-party certification required.
Data storage requirements for insurance VBIP are more stringent than banking KYC due to the longer policy lifecycles involved. Video recordings, document images, and verification metadata must be stored within India on infrastructure that the insurer controls or has contractual governance over. For on-premise deployments, the insurer maintains direct control. For cloud deployments, IRDAI requires that the cloud provider's data centers be located in India and that the insurer retains the encryption keys. Data retention must span the full policy term plus five years for life insurance, or the claim settlement period plus five years for general insurance. Given that some life insurance policies can run for 30 or more years, this creates a significant long-term storage obligation.
Compliance Checklist for Insurance Companies
- Deploy a VBIP platform with end-to-end encryption and minimum 720p video quality
- Implement liveness detection with certified accuracy for spoof prevention
- Build differentiated workflows for life, general, and health insurance VBIP
- Integrate OCR-based document verification for PAN, Aadhaar, age proof, and income documents
- Configure maker-checker approval workflows for post-session review
- Train and certify all officials (including intermediary representatives) who will conduct VBIP
- Set up data storage infrastructure within India with encryption key management
- Implement data retention policies aligned with policy term plus five-year requirements
- Upload verified KYC records to the CKYC registry as mandated
How BASEKYC Supports Insurance KYC
BASEKYC's platform is purpose-built for the insurance sector's unique VBIP requirements. Our configurable workflow engine allows insurers to create distinct verification flows for life, general, and health insurance -- each with the appropriate document set, declaration capture, and suitability confirmation steps. The same platform handles proposer onboarding, beneficiary verification, and claims-stage identity re-verification.
Our AI engine includes liveness detection, face matching against submitted documents, and OCR-based data extraction that cross-verifies document information in real time during the video session. The built-in maker-checker workflow routes completed sessions to designated compliance officers for review and approval, with configurable escalation rules for edge cases.
For data storage compliance, BASEKYC offers both cloud deployment on Indian data centers and full on-premise deployment within the insurer's own infrastructure. Our retention management system automatically applies the correct retention period based on the policy type and term, ensuring that records are maintained for the required duration and securely purged when the retention period expires. With CKYC registry integration built in, every verified record is automatically uploaded as required by regulation.