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This is with reference to "Anti-money laundering norms hit rural insurance" (Business Line, September 6): The stand of the private insurers on the regulatory requirements of KYC (know your customer) for their rural clients is against public policy. They should follow the regulatory requirements.

That they should wish to continue insuring persons just `with a post-box', instead of finding out the exact address, is not on. It is the duty of insurers to ensure that their business does not become a conduit for tax evasion.

Under the circumstances, the insurance regulator would do well to pursue the KYC norms prescribed and also take care to include in their mandatory annual reports the progress in this regard so that Parliament knows how far competitive insurance is operating in rural areas.

This will be useful for the lawmakers while considering further liberalisation.

S. Subramanyan

Mumbai

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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