Significance of ISNP Insurance Certification

The certification from ISNP is vital for insurance entities looking to engage in e-commerce. It not only reduces transaction costs but also helps meet the growing demand for online insurance services. A report by Google India indicates a rising trend among consumers preferring to purchase and renew policies online

Services Offered on ISNP

The ISNP facilitates various services for policyholders, including:

• Issuance of policy documents and certificates
• Organizing medical check-ups
• Endorsements and policy term changes
• Collection and remittance of renewal premiums
• Assignment registration and nomination changes
• Policy cancellations, maturity benefits, and payouts
• Loan against policy and fund switching
• Duplicate policy issuance and claims processing

Eligibility Criteria for Setting Up ISNP

To establish an ISNP, applicants must meet certain criteria:

Eligibility Criteria

1. The applicant must be an incorporated company or a Limited Liability Partnership (LLP).
2. A principal officer must be designated for the business entity.
3. Compliance with the guidelines specified in Form ISNP-1 is mandatory.

Essential Requirements

• Capability to automate processes while ensuring data privacy.
• A web or mobile platform to sell and service policies across life and non-life insurance companies.
• Insurance intermediaries can enroll insurers, while insurers can only enroll intermediaries.

Understanding E-Insurance Accounts (eIA)

Under ISNP, policyholders can maintain an e-insurance account (eIA), which holds their policy documents in electronic format. IRDAI has authorized four entities to manage eIAs, including:

• NSDL Database Management Limited
• Central Insurance Repository Limited
• Karvy Insurance Repository Limited
• CAMS Repository Services Limited

Policyholders must have an eIA before engaging in transactions on the ISNP.

Required Documents for ISNP Insurance Certification

To initiate an e-commerce platform for insurance, the following documents must be submitted:

• Certificate of Incorporation
• Memorandum of Association (MOA) and Articles of Association (AOA)
• Details of directors and shareholders
• Description of the business model
• Management personnel information
• Security measures to prevent unauthorized access
• Disaster recovery procedures
• Customer data encryption details
• Management Information System supporting operations
• Source code of the e-commerce portal
• CERT-IN certification of the portal

Process of Obtaining ISNP Insurance Certification

The steps to obtain ISNP certification include:

1. Submit an application using Form ISNP-1 to seek prior permission.
2. Attach the required documents and pay the non-refundable fee.
3. The authority will review the application.
4. If satisfied, the authority will grant approval; otherwise, it may reject incomplete applications.

Validity and Compliance

The ISNP certification remains valid as long as the registration certificate is active. Insurers must ensure that they comply with IRDAI regulations and perform annual reviews of their systems by certified auditors.

Compliance Requirements

• Annual reviews by external certified auditors.
• Reporting adverse findings with action plans to IRDAI.
• Adherence to a strict code of conduct for managing ISNP.
• Regular filing of compliance certificates by senior management.

Note: The ISNP is a transformative initiative in the Indian insurance landscape, enabling a smoother transition to e-commerce. By understanding its functionalities and compliance requirements, insurance entities can effectively leverage this platform for growth