Insurance Web Aggregator License
Overview About Insurance Web Aggregator License
As per the provisions of Insurance Act, 1938 and Insurance Regulatory and Development Authority of India (Insurance Web Aggregators) Regulation, 2017 amended up to 30th Oct, 2019, any person who wishes to be in the business of Insurance Aggregation via Digital Platform needs to have approval first from the Insurance Regulatory and Development Authority of India (IRDAI) to get his Insurance Web Aggregator License
With increasing internet penetration, smart phone users and easy access of internet, people will be found on an instant search engine for any related services and knowledge. It is well accepted by our businessmen that it is the need of hour to have digital presence and business operation to be digital and technology driven. Similarly, the regulator also acknowledges the modes of business operation and its variability in market, wherein early 2013 regulator came up with guidelines for Insurance Web Aggregator business. The regulator recently repealed the 2013 regulation and came up with revised regulatory framework of Insurance Web Aggregator in 2017 with latest amendments up to 30th Oct, 2019 to license, monitor and govern this business appropriately.
Concepts About Insurance Web Aggregator License
Authorized Verifier- A Person employed by licensed Insurance Web Aggregator or a Tele-marketer for insurance solicitation and procurement through Telemarketing and Distance Marketing mode. That person needs to undergo training and have passed the examination specified by Authority i.e., IRDAI.
Distance Marketing- Marketing or sale of insurance products without physical presence at the time of sale which is done via telephone, (SMS), e-mail or internet or web service.
Lead-the information of person who has accessed the website of an Insurance Web Aggregator and has submitted contact information of any kind, to know the detailed information with prices and benefits of the products. This needs to be maintained on LMS system i.e., “Lead Management System”
Principal Officer-a director/partner or Chief Executive Officer who will be mainly and wholly responsible for the Insurance Web Aggregator activities.
Solicitation- An approach to prospect by an insurer or an intermediary to convince to purchase an Insurance policy.
What is Insurance Web Aggregator?
A digital platform which generates the lead and its management for securing the business to various Insurer company in India under the valid agreement between Insurance Web Aggregator and Insurance Company.
Eligibility Criteria to apply for Insurance Web Aggregator License?
Any person like-
-Company or
-Limited Liability Partnership with minimum Net Owned Fund adequacy of INR 25 Lakh, can apply for Insurance Web Aggregator License.
Registration Procedure
Post building the onboarding process-
- Share the Name and required documents of Director/Shareholder to IRDAI office for name approval for the incorporation of proposed Company or LLP.
- Post Approval, Person can incorporate the company or LLP with required capital contribution to maintain the Net Owned Funds.
- The permission letter will be valid for six (6) months to do incorporation. Post incorporation, the application drafting, other write up, business plan, review and collection of documents will take time.
- Thereafter, submit the application to its head office Hyderabad for their scrutiny and revision.
- Till completion of revision of submitted documents, IRDAI communicates the shortcomings or any further documents required.
- Subject to satisfaction of all the requirements, documents eligibility, fit and proper criteria of Board of Director; and Shareholder’s clean money criteria to issue in-principal approval.
- During the period of in-principal approval developed platform or platform in progress needs to be accomplished with system audit report on same.
- After the full fledge development of platform or system report submission on designed platform the IRDAI can give certificate of authorization.
- The entity shall initiate the business within 6 months of receiving the documents from IRDAI.
Documents Required
1. Copy of PAN Card – Attested by at least Two Director of Company
2. Copy of Certificate of Incorporation (COI) – Attested by at least Two Director
3. Copy of Memorandum and Article of Association or LLP Agreement – Duly certified by Chartered Accountant
4. Board Resolution
5. Shareholding Pattern
6. Details of Statutory Auditor and Principal Banker
7. List of Associate Companies/concern with activity and interest thereon
8. Net Worth Certificate from Statutory Auditor
9. Snap shots of contents of proposed website along with proof of domain registration
10. Confirmation of place of hosting website such as registered office, corporate office
11. List of persons to have control over or responsibility for the website contents in relation to Insurance Web Aggregation
12. Audited/unaudited financial statement of Company
13. Business plan for next three years
14. Details of infrastructure including IT infrastructure available
15. Organization Chart showing functional responsibilities
16. User ID and Temporary Password (with only view permission) to verify the Aggregation Website, Portal/LMS by IRDAI I.T. Department in a closed cover.
17. Director/Partner KYC, Profile and CV with experience certificate
18. Shareholder/Partner KYC, Income Tax Return and Net Worth Certificate
19. Principal Officer KYC, CV, Business Profile and Experience Certificate in addition to academic qualification with certification from authority
Conditions
- Person acting as Principal Officer in Insurance Web Aggregator shall be: -
- Graduate or Post Graduate in Arts, Science, or Social Sciences or Commerce or Engineering or Law or Management or its equivalent from any institution/university recognized by any State or Central Government
- Associate/Fellow members of Insurance Institute of India, ICAI, ICSI, ICWA, Institute of Actuaries of India or Indian Institute of Bankers
- Attended training on insurance from an institution recognized by authority.
- Completed examination and have submitted the certificate of passing the exam to authority.
FAQs
The main functions are-
To display the Insurance Products along with their prices; facilitation of feature and benefit comparison between two or more insurance products; assistance in the process of the sale; and premium payment of insurance products.
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