The life Insurance Corporation of India (LIC), the largest life insurer in India, will become the first institutional partner in the UID Project. The Corporation has a huge database of 21 unique customers, holding 27 Crore policies, making it the biggest insurance company in the world.
The two organizations signed a Memorandum of Understanding under which the LIC has agreed to act as a registrar for the delivery of 12 digit Unique Identification numbers to the people of India. The LIC is the first institution that has agreed to partner UID’s gargantuan project that will bring all Indians under a single umbrella, facilitating smoother interaction between various private and public sector organizations across the country.
UID to use Iris recognition technology
The UID project will be based on demographic data, and biometric data based on fingerprints, photographs and an iris scan.
Iris recognition system is considered to be reliable and very robust. Iris scanning devices uses an infrared device to scan the iris, recording its patterns for later use. This process of recording the data is known as enrolment. Iris recognition has an advantage over other biometric systems because the iris retains its distinctive nature years down the line, giving a substantial saving in cost.
The UID project will use an iris scanner to record data, which later be incorporated in the database. The 12 digit number will be a repository of biometric and demographic information, helping governments and organizations to get information about an individual.
Nandan NIlekani, Chairman, UIDAI, and Mr. T.S Vijayan, Chairman, LIC jointly signed the memorandum, which is expected to help LIC deliver on its Social Security Schemes and at the same time streamline administration and premium collection procedures.
According to experts, the scheme will bring forth financial inclusion as more than 4 Crore policyholders under the Jana Shree Yojana (JSBY), Aam Aadmi Bima Yojana, and Micro Insurance scheme are expected to benefit. The project intends to bring about better financial inclusion by filtering the benefits of the booming economy to the marginalized by paving the way for greater financial inclusion.
LIC has a database, consisting of information about its customers which it hopes to use in the issuance of UID Numbers to its customers. A company spokesperson said that the UID Number would help the company to provide the best-in-class service and fulfilling its objective to provide coverage to each and every citizen of the country.