Is PAN card mandatory for insurance in India? Let’s See! ST860

This text solutions the query, “Is PAN card necessary for insurance coverage?” by exploring the significance of PAN card within the insurance coverage sector, the kinds of insurance coverage insurance policies that require PAN card, and the implications of not offering PAN card particulars.

What’s PAN Card?

Everlasting Account Quantity (PAN) card is a novel 10-digit alphanumeric identification issued by the Indian Revenue Tax Division. The cardboard serves as an important doc for varied monetary transactions and is necessary for a number of functions, together with submitting revenue tax returns, opening a checking account, and investing in mutual funds. However, is PAN card necessary for insurance coverage? Let’s discover this subject intimately.

Earlier than exploring the subject, let me remind one factor. In case you are a PAN card holder, then you have to have linked your PAN together with your Aadhaar card to proceed the advantages of a PAN card. So nonetheless there are quite a lot of PAN Card holders who’ve but not linked their PAN with their Aadhaar.

There may be another probability for them. They will hyperlink their PAN with their Aadhaar by paying Rs 1000 a as penalty. The final date is thirty first March 2023. In case you are one in all them then don’t waste your time linking your PAN together with your Aadhaar card. Here’s a video to information you about the identical. In case you are confused about whether or not your PAN is linked with Aadhaar or not then verify PAN Aadhaar hyperlink standing on-line right here.

PAN card within the Insurance coverage Sector:

The insurance coverage sector is not any exception in terms of the importance of PAN card. In reality, it’s necessary for sure kinds of insurance coverage insurance policies. PAN card helps insurance coverage corporations to trace and confirm monetary transactions associated to the coverage. It additionally assists in decreasing fraudulent actions and making certain transparency in monetary transactions.

Varieties of Insurance coverage Insurance policies that Require PAN Card:

Based on the Insurance coverage Regulatory and Improvement Authority of India (IRDAI), a PAN card is necessary for all insurance coverage insurance policies which have a premium of Rs. 50,000 or extra every year. This contains insurance policies corresponding to life insurance coverage, medical insurance, and motor insurance coverage. In case you are buying any of those insurance policies, you’ll have to present your PAN card particulars.

Penalties of Not Offering PAN Card Particulars:

In the event you fail to offer your PAN card particulars to the insurance coverage firm, your coverage might get rejected. Furthermore, if the insurance coverage firm approves your coverage with out PAN card particulars, your coverage’s advantages might change into taxable at a better charge. This may end up in elevated monetary burden on the policyholder.

Exceptions to PAN Card Requirement:

There are just a few exceptions to the rule that PAN card is necessary for insurance coverage insurance policies. For instance, in case you are buying a time period insurance coverage coverage with a premium of lower than Rs. 50,000 every year, you will not be required to offer your PAN card particulars. Moreover, in case you are a non-resident Indian (NRI), it’s possible you’ll be exempted from offering PAN card particulars for buying insurance coverage insurance policies.

Methods to Apply for a PAN Card:

In the event you don’t have a PAN card, you’ll be able to simply apply for it on-line or offline. To use on-line, go to the official web site of the Revenue Tax Division and fill within the required particulars. To use offline, obtain the shape from the web site, fill it out, and submit it to the closest PAN card middle. It takes round 15 to twenty days to obtain your PAN card.

FAQs:

  1. What’s a PAN card?

    A PAN card is a novel 10-digit alphanumeric identification issued by the Indian Revenue Tax Division. It’s a essential doc for varied monetary transactions and is necessary for a number of functions, together with submitting revenue tax returns, opening a checking account, and investing in mutual funds.

  2. Why is a PAN card vital for insurance coverage insurance policies?

    A PAN card is important for insurance coverage insurance policies because it helps insurance coverage corporations to trace and confirm monetary transactions associated to the coverage. It additionally assists in decreasing fraudulent actions and making certain transparency in monetary transactions.

  3. Which kinds of insurance coverage insurance policies require a PAN card?

    All insurance coverage insurance policies which have a premium of Rs. 50,000 or extra every year, together with insurance policies corresponding to life insurance coverage, medical insurance, and motor insurance coverage, require a PAN card.

  4. Can I apply for an insurance coverage coverage with out a PAN card?

    No, in case you are buying any insurance coverage coverage that has a premium of Rs. 50,000 or extra every year, you have to present your PAN card particulars. Failure to take action might lead to rejection of the coverage or increased taxation.

  5. What are the implications of not offering PAN card particulars to the insurance coverage firm?

    In the event you fail to offer your PAN card particulars to the insurance coverage firm, your coverage might get rejected. Furthermore, if the insurance coverage firm approves your coverage with out PAN card particulars, your coverage’s advantages might change into taxable at a better charge, leading to elevated monetary burden on the policyholder.

    Conclusion:

    In conclusion, a PAN card is necessary for sure kinds of insurance coverage insurance policies because it helps to trace and confirm monetary transactions associated to the coverage. Not offering PAN card particulars may end up in destructive penalties, corresponding to rejection of the coverage or increased taxation. Whereas there are exceptions to this rule, it’s typically essential to have a PAN card in the event you plan on buying insurance coverage. It’s endorsed to use for a PAN card in the event you don’t have already got one, as it may be helpful in varied monetary transactions, together with insurance coverage insurance policies.

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