Insurance web aggregators collect, compile, and provide information about different companies’ insurance policies on a website. They act as intermediaries between the insurance companies (insurers) and people who want to take insurance policies.
The insurance web aggregator is a business entity maintaining a website that provides information on insurance policies offered by different insurance companies available in the market. They are regulated by the Insurance Regulatory and Development Authority of India (Insurance Web Aggregators) Regulations, 2017 (“Regulations”).
The insurance web aggregators collect data on various policies of insurance companies and upload it on a single online portal. The individuals interested in taking an insurance policy can visit this portal and compare the products, prices, terms of conditions offered by different insurance companies and make the best choice.
Eligibility Criteria For Insurance Web Aggregator License
For obtaining the Insurance Web Aggregator Registration Certificate or License, the applicants should fulfil the following conditions:
- The applicant should be a company registered under the Companies Act, 2013 or a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008. However, the partners of the LLP must be Indian residents.
- The Memorandum of Association (MoA) of the company or LLP should mention that the web aggregation business of insurance products is its main object.
- The applicant should not be engaged in any other business other than insurance web aggregation.
- The applicant is not appointed or registered as an insurance/microinsurance agent, corporate agent, surveyor and loss assessor, Third Party Administrator (TPA), insurance marketing firm or any other intermediately under the regulations of the Insurance Regulatory and Development Authority of India (IRDAI).
- The applicant should not have a referral arrangement with an insurer.
- The Principal Officer has the qualifications specified in Form C of the Regulations, undergone training and the examination specified by the IRDAI.
- The Principal Officer, promoter, director, partner, shareholder or key managerial personnel has fulfilled the conditions of the fit and proper criteria stated in Form D of the Regulations.
- The person (Authorised Verifier) employed by the insurance web aggregator or a telemarketer for procurement and insurance solicitation through Telemarketing and Distance Marketing mode has passed the examinations specified by IRDAI.
- The applicant has not violated the obligations and the code of conduct specified in Form V and Form W of the Regulations.
- The IRDAI should not have rejected the application for grant of license/registration certificate, or the applicant should not have withdrawn the application for any reason during the preceding financial year from the date of application.
Application For Insurance Web Aggregator License
- The applicant should file the application for the Insurance Web Aggregator Registration Certificate in Form A of the Regulations.
- The registration application should be accompanied by a non-refundable fee of Rs.10,000 plus taxes through a Demand Draft (DD) drawn in favour of IRDAI or via Electronic Fund Transfer.
- The applicants who want permission for outsourcing and telemarketing facility or function should specifically mention it in the application form.
- The applicant should fulfil all the requirements for consideration of the application, which are as follows:
- The applicant should fulfil the eligibility criteria mentioned above.
- The directors, chief executive, partners, managing director, key management personnel or principal officer should not be suffering from any disqualifications under the Insurance Act.
- The previous application of persons directly or indirectly related to the applicant has not been refused by the IRDA.
- The promoter, partners or shareholders of the applicant should have a sound financial position to make investments.
- The applicant should have a designated website that can offer an insurance web aggregation for insurance solicitation.
- If any opportunity to furnish information or clarification is given by the IRDA, if any, it needs to be submitted within 30 days.
- The capital requirements to be fulfilled by the applicant are as follows:
- The applicant should have a minimum paid-up capital of Rs.25 lakh.
- If the insurance web aggregator is a company registered under the Companies Act 2013, the capital should be issued and subscribed in the form of equity shares. In the case of an LLP, the partner’s contribution to the LLP should be only in cash.
- The shares of the applicant held as capital should not be pledged in any manner for securing credit or any other facility and at all times be unencumbered.
- The net worth requirements to be fulfilled by the applicant are as follows:
- The net worth of the applicant should not fall below 100% of the minimum capital requirements.
- The applicant should review the net worth half-yearly status on 30th September and 31st March every year. The applicant should report non-compliance, if any, to IRDAI within 15 days. After that, the applicant should restore the requirements within 30 days and confirm them to the IRDAI.
- If the applicant cannot maintain the net worth even after 30 days, the business related to the insurance aggregation should be stopped.
- The applicant should submit the Net worth Certificate certified by a Chartered Accountant (CA) to the IRDAI every year after finalising the books of accounts.
Grant Of Insurance Web Aggregator License
The IRDAI will grant the certificate of registration to the applicant for functioning as an Insurance Web Aggregator in Form E of Schedule I of the Regulations. The IRDAI will grant this certificate of registration when the applicant fulfils the requirements mentioned in the Regulations, and the IRDAI is of the opinion that granting registration to the applicant will be in the interest of the policyholder.
The certificate of registration issued by the IRDAI is subject to the applicant adhering to the following condition:
- The applicant must adhere to the code of conduct and conditions specified by the IRDAI from time to time.
- The applicant can only solicit insurance and solicit and procure many insurance policies commensurate with the resources (Specific details specified in From Q of the Regulations).
- The applicant has to comply with the provisions of the IRDAI Act, 1999 and the Regulations, Circulars, Guidelines and any other instructions issued thereunder.
- The applicant should inform IRDAI of any material change or misleading or false information in the previously provided documents.
- The web aggregators have to take adequate steps to redress the grievances within 14 days of the receipt of the grievance.
- The Web Aggregator shall maintain records in the format specified by the Authority, which shall capture policy-wise and authorised verifier-wise details and shall put in place systems that allow regular access to such records and details by the Authority.
Documents Required For Insurance Web Aggregator License
The documents to be produced by the applicant, along with the application for the grant of Insurance Web Aggregator License, are mentioned in Form B of the Regulations. All the documents submitted need to be self-attested by the Principal Officer. These documents are as follows:
- Copy of Certificate of Registration or Incorporation issued by the Registrar of Companies.
- Copy of Memorandum of Association and Articles of Association or LLP Agreement duly certified by CA.
- Copy of PAN Card of the company.
- CVs of the directors or designated partners of LLP and principal officer with qualification certificates.
- Snapshots of the proposed website along with the proof of domain name registration, confirmation of place of hosting website and list of persons responsible for or control over the insurance web aggregation website contents.
- Certificate of CA for the company’s net worth and shareholding pattern and copies of the Audited Accounts and Annual Report for the previous three financial years.
- The business plan of the applicant for the next three years.
- The details of infrastructure, including available IT infrastructure.
- An organisational chart showing functional responsibilities.
- Training and Examination Certificates of the principal officer and authorised verifiers.
- Details and declarations of the principal officer, directors, promoters, partners and key management personnel relating to “fit and proper” criteria stated in Form D of the Regulations.
- A user I.D. along with the temporary password (with only view permission) to verify the insurance web aggregation website/portal by IRDAI I.T. Department in a closed cover.
- Notarised Self Certification executed by two directors or designated partners of LLP certifying that:
- The Principal Officer and the directors of the company are not found to be of unsound mind by a court of competent jurisdiction, major and not found guilty for criminal misappropriation or cheating or criminal breach of trust or forgery or an abetment for an attempt to commit any such offence n the past five years by a court of competent jurisdiction. The directors/applicant are not involved in the last three years in any economic offences.
- None of the employees/directors of the company is holding employment/directorships in or represent any other insurance-related entity.
- The company should ensure that during the period of the certificate of registration, the net worth of the company is not reduced below Rs.25 lakh.
- The applicant or its directors or the Principal Officer are not registered as a corporate agent or insurance agent or microinsurance agent or surveyor or TPA or an insurance broker or loss assessor or other insurance intermediaries under the relevant regulations of IRDAI.
- The applicant company or its directors or the Principal Officer are not a related party of an insurer, corporate agent, insurance broker, TPA, micro-insurance Agent, a loss assessor or surveyor or other insurance intermediaries at the time of submission of the registration application for Insurance Web Aggregator Certificate and will maintain the same status during the period of the certificate of registration in future.
Validity Of Insurance Web Aggregator License
The Insurance Web Aggregator License/Registration Certificate issued by the IRDAI shall be valid for three years from the date of its issue. It can be renewed 30 days before the expiry of the registration.
Renewal Of Insurance Web Aggregator License
The insurance web aggregator has to apply for renewal of registration to IRDAI in Form F prior to 30 days of the expiry of the registration. However, the web aggregator can also apply for renewal of registration before 90 days of the expiry of the registration in the manner specified by IRDAI.
The application for renewal of registration needs to be submitted along with the documents listed in Form G of the Regulations and a renewal fee of Rs.25,000 plus taxes.
If the application is not received by the IRDAI before 30 days of the expiry of the registration, an additional fee of Rs.100 per day will have to be paid. IRDAI may accept renewal applications up to 60 days from the date of the expiry of registration on payment of an additional fee of Rs.750 by the applicant.
IRDAI will renew the registration after being satisfied that the web aggregator fulfils all the conditions specified in Form H of the Regulations. The IRDAI may refuse renewal if it is found that the web aggregator is not doing any insurance business during the entire or part of the previous registration period.
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