Amid allegations of insurance products being used for money laundering, the Insurance Regulatory and Development Authority (Irda) has asked insurers to keep records of customers and beneficiaries for five years after termination of business relationship.
"The record of documents evidencing identity of customers and beneficial owners as well as account files and business correspondence relating to the customer shall be maintained for at least a period of five years after the business relationship with the customer has ended," Irda said on Monday.
Insurers and agents are also required to maintain the records of all transactions for a period of five years from the date of transaction.
The new guidelines are in line with the changes in the Prevention of Money Laundering (Amendment) Act, 2012.
The insurance-sector regulator is already examining the allegations of money laundering leveled against certain insurance companies and had said action would be taken against the guilty.
Online portal Cobrapost has named a large number of banks and insurance companies for allegedly "running a nation-wide money laundering racket".
The four insurance companies which figured in its list are alleged to have violated the know your customer (KYC) and anti money laundering (AML) guidelines.
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