Transcription of the above video: Why PAN details are mandatory while buying insurance?
Hello, Shailesh from Insurance Samadhan! I receive a lot of complaints from our customers that their claim amount has been cut down and deducted. When I checked their details, we got to know that the PAN Number has not been given. On asking why the PAN Number was not shared, they answered by saying that it was not asked by the Insurance Company. You need to understand that Insurance is a type of Financial Instrument and all the proceeds are Tax-free under Section 10 10 D. But, are all the proceeds free? No. There is a relationship behind this between your premium amount and the sum assured. Secondly, if your PAN number is registered to the company, then 2% TDS will be deducted. If your PAN number is not registered, then up to 20% of TDS can be deducted. So, avoid all kinds of hurry and please get your PAN Number registered with the Insurance Company. If your sum assured is 10 times greater than your premium, then your proceeds will be tax-free. Hope this information was useful to you!