International BusinessIrda extends deadline for collecting PANs by insurers
The Insurance Regulatory and Development Authority (Irda) has extended the deadline to September 1 for collecting the permanent account number (PAN) from people purchasing insurance policies in which annualised premiums exceed Rs 1 lakh.
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Irda stated that more time was given as many insurers had expressed difficulty in meeting the August 1 deadline in this regard.
According to the regulator, representations have been made to waive off the submission of PAN in case of certain categories such as those only with agricultural income and non-resident Indians. The people have no assessed income under the IT Act and hence are exempted from the requirement of PAN.
“This request has been considered and it has been decided that insurers shall insist on PAN from all people who are required to obtain the same under the provisions of IT Act, 1961. Insurers shall, however, collect a signed declaration from persons exempted from the requirement of PAN, stating the provisions of the IT Act under which they have been exempted,” Irda stated in its circular.
It has also been decided that in cases where a proposer has applied for PAN but has still not received the same, a copy of the application acknowledged by the agency authorised to collect applications for PAN, can be accepted by insurers in lieu of PAN.
The insurer, however, should take an undertaking from the proposer that the PAN should be submitted as soon as it is received.