The Supreme Court is yet to pronounce its verdict on the constitutional validity of Aadhaar. But there are a set of companies, including insurance firms, that really want access to your Aadhaar data.

Every insurance official that I interact with is hopeful of Aadhaar being made mandatory. Reason? It will make the Know-Your-Customer (KYC) process easier for them. Since insurance is a push product, policyholders are very reluctant to share data.

Unlike banks where individuals immediately update their addresses and contact details in case of a change, insurers are the last ones that come into mind. Insurers say once they have access to Aadhaar data, any changes in KYC can be automatically updated in their systems as well.

Talk to them about the potential privacy issues, there comes a sharp retort that there could be ‘secure vaults’ where the data could be stored below several layers of encryption. Few realise that insurers deal with thousands of intermediaries who could now have much easier access to your personal information.

Once an insurance company gets access to Aadhaar data, not only can they get updates about KYC information, they can also offer instant policies without waiting for any other documents. Currently, insurers accept voters’ identity card, passport, ration card and driving licence as identification documents. Further, individuals also need to quote their PAN numbers for taxation purposes.

When permission is given to access Aadhaar data, insurers can also view the above details at the click of a button. A regular insurance policy takes three to four days from the time the documents are submitted till the policy is issued. Pulling data from the Unique Identification Authority of India (UIDAI) will cut down the time to a few hours.

But the question that comes to mind is how the insurers will use the data. If Aadhaar is made mandatory, insurers can have access to all the documents that are linked to the 12-digit number — be it bank account information, income tax details, mobile number as well as any subsidy-related information.

In the general insurance industry, policyholders just share the name and email address to get an insurance policy issued. Not only does this pose a challenge during the time of renewals, but also if the insurer wants to cross-sell a product. These companies want to get your Aadhaar, so that the moment you make any significant life-changes, they can contact you.

So the next time you buy a house or even have your child enrolled for Aadhaar, your insurer will have this information first-hand if they have your Aadhaar number. And they will be armed with your data, ready to sell all possible insurance products.