The Consent Template CT006, finalized by the Insurance Use Case Council, streamlines income verification use case during the underwriting process in the insurance industry.
Consent Template Information - CT006
| Consent Template Information | Description | Further Explanation |
|---|---|---|
| Consent Template ID | CT006 | For Sahamati's internal records and explanation to the community |
| Status | Active | For Sahamati's internal records and explanation to the community |
| Use Case Category | Income verification | For Sahamati's internal records and explanation to the community |
| Use case | Verifying income as or on behalf of an insurer selected by an insurance seeker | The Council has considered following license types while deliberating on this consent template. 1. Life Insurer who underwrites the product 2. Insurance Brokers and Agents who have to analyze the income to determine the suitability of the insurance product . |
Consent Template Information / Attributes - CT006
| Consent Details (Attributes) | Values | Rationale |
|---|---|---|
| Purpose Text | As agreed by FIUs to show to the customer: To verify the income as or on behalf of the insurer selected by the customer while underwriting a Life insurance policy | to ensure that the purpose explains the underlying use case explicitly and is easy to understand for the customer. The income of the insurance customer is verified either by the Insurance Agent or Broker to draw up a proposal or by the Insurance company to underwrite the proposal |
| As per ReBIT: Aggregated statement | ||
| Purpose Code | 103 | In line with existing code of conduct PC001 - https://sahamati.org.in/aa-community-guidelines-v1-2/purpose-codes/ |
| Purpose Code Category Name | Financial Reporting | In line with existing code of conduct PC001 - https://sahamati.org.in/aa-community-guidelines-v1-2/purpose-codes/ |
| FI Types | DEPOSIT, TERM_DEPOSIT, RECURRING_DEPOSIT, MUTUAL_FUNDS, GSTR1_3B | The Council agreed that bank statements are considered valid proof for income verification. Based on the commonly used surrogates in the industry, the council has added two additional FI Types as follows: - Mutual Funds may considered while computing income that is accrued but not reflected in the Bank statement yet. - GSTN may be considered for customers who are self-employed . |
| Consent Types | Profile, Summary, Transactions | All three consent types are used, as they hold the information about income and profile (for cross validation of KYC) of the customer |
| Fetch-type | Once | Verification of income is done only once, unless in case of lapses. However, as there is no clear information on the frequency or validity at the point of this deliberation, the Council has agreed that income verification post-lapses are outside the scope of this template. |
| Maximum Frequency | NA | |
| Maximum FI Data Range | 12 months | FIUs requirement to be able estimate and assess the disposable income of the customer |
| Maximum Consent Validity | 45 days | Based on the TAT issued by regulators, which requires the Insurer to underwrite the policy within 30 days and communicate the same to the customer within the next 15 days, the Council has agreed on 45 days as valid upper limit for consent validity |
| Maximum Data Life | 45 days | Based on the Consent validity and TAT issued by regulators the Council has agreed to retain 45 days as valid upper limit for data life as well. The Council noted that while the Insurer/Agent/Broker may have to retain the processed copies of the bank statement in unaltered form longer than 45 days, as per IRDAI regulations on Data Storage, the raw data received through AA network will be bound by the upper limit of 45 days. |
| Last published: | 17th May 2024 |
Please note that the parameters of the individual consent templates in the Consent Template Library represent upper bounds for the respective use cases, as decided in the relevant User Councils. The parameters in the consent templates should be treated by participant(s) as outer limit(s) and not be construed as legal advice in any manner. Participants are encouraged to review their use case(s) and ensure compliance with applicable laws, including the RBI Master Directions on NBFC-AA and the DPDP Act.
Sahamati will publish additional consent templates as the AA ecosystem evolves based on discussions in the relevant Use Case Councils and the Fair Use Committee. Existing consent templates may also be revised based on statutory and regulatory guidance, including the DPDP Act and the Rules issued thereunder.
