Insurance web aggregators are businesses that collect, compile, and present information about various insurance policies from multiple companies on a single online platform. They serve as intermediaries between insurance companies (insurers) and individuals seeking insurance coverage. Regulated by the Insurance Regulatory and Development Authority of India (IRDAI), these aggregators help consumers compare products, prices, and terms to make informed decisions.
Importance of Insurance Web Aggregators
- Centralized Information: They provide a one-stop solution for consumers to access and compare a wide range of insurance policies.
- Transparency: By displaying comprehensive details about various products, they foster transparency in the insurance market.
- Convenience: Users can easily navigate through different options without needing to visit multiple insurers.
Regulatory Framework
Insurance web aggregators are governed by the Insurance Web Aggregators Regulations, 2017 set forth by IRDAI. This regulatory framework ensures that aggregators operate fairly, maintain transparency, and adhere to ethical practices.
Eligibility Criteria for Insurance Web Aggregator License
To obtain an Insurance Web Aggregator License, applicants must meet specific eligibility criteria:
- Business Structure:
- Must be a company registered under the Companies Act, 2013 or a Limited Liability Partnership (LLP) under the LLP Act, 2008. Partners must be Indian residents.
- Business Objective:
- The Memorandum of Association (MoA) should state that the web aggregation of insurance products is its main object.
- Exclusivity:
- The applicant should not engage in any business other than insurance web aggregation.
- No Other Registration:
- The applicant must not be registered as an insurance agent, corporate agent, or any other intermediary under IRDAI regulations.
- Principal Officer Qualifications:
- The Principal Officer must have the qualifications specified in Form C and complete the requisite training and examinations.
- Fit and Proper Criteria:
- All key personnel must meet the fit and proper criteria outlined in Form D.
- No Referral Arrangements:
- The applicant should not have referral arrangements with any insurer.
- Previous Application History:
- The applicant should not have had a license application rejected by IRDAI in the previous financial year.
Documentation Required for Insurance Web Aggregator License
When applying for an Insurance Web Aggregator License, the following documents must be submitted:
- Certificate of Registration or Incorporation.
- Memorandum and Articles of Association.
- PAN Card.
- CVs and qualifications of directors and the principal officer.
- Proposed website details and domain registration proof.
- Chartered Accountant's certificate for net worth.
- Business plan for the upcoming three years.
- Details of IT infrastructure and organizational chart.
- Fit and proper declarations for all key personnel.
- User ID and temporary password for website verification
Application Process for Insurance Web Aggregator License
Step-by-Step Guide
- Submission of Application:
- Applications must be filed in Form A of the Regulations, along with a non-refundable fee of Rs. 10,000 plus taxes.
- Outsourcing and Telemarketing:
- If the applicant seeks permission for outsourcing and telemarketing, it should be clearly stated in the application.
- Documentation Requirements:
- The applicant must provide comprehensive documentation to validate eligibility, including:
- Certificate of Registration or Incorporation.
- Memorandum and Articles of Association or LLP Agreement.
- PAN Card and CVs of key personnel.
- Proof of domain name registration and proposed website details.
- Financial statements and business plans.
- Capital Requirements:
- A minimum paid-up capital of Rs. 25 lakh is required.
- Net Worth Compliance:
- The net worth should meet or exceed the minimum capital requirements and must be reviewed biannually.
Grant of License
Upon fulfilling all regulatory requirements, IRDAI will issue a registration certificate in Form E. This certificate allows the applicant to operate as an insurance web aggregator.
Conditions for Operation
- Adhere to the code of conduct set by IRDAI.
- Comply with all provisions of the IRDAI Act and related regulations.
- Maintain records in the specified format for access by IRDAI.
Validity and Renewal of License
The Insurance Web Aggregator License is valid for three years from the date of issuance. Renewal must be applied for at least 30 days before the expiration date using Form F and accompanied by a fee of Rs. 25,000 plus taxes. Late applications may incur additional fees.
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