Overview of Insurance Web Aggregator License
In India, insurance web aggregators are websites that give in-depth details on a range of insurance plans offered by various companies. Customers may evaluate the features and costs of various insurance policies using these platforms.
Insurer web aggregators are required to get the Insurance Web Aggregator License from IRDA prior to beginning any aggregation activity on their websites. The web aggregator is an insurance intermediary that maintains a website that provides access to insurance opportunities for value correlation, product data from different financial institutions, and other connected matters. This body regulates it- The Insurance Regulatory and Development Authority of India (Insurance Web Aggregators) Regulations, 2017.
Important Terminology of Insurance Web Aggregator License
Verifier with Authorization
The person employed by a web aggregator, insurance company, or tele-advertiser with the ultimate objective of selling and acquiring insurance through telemarketing and distance marketing, and who has prepared for and passed the test with ease, as assessed by the IRDAI;
Marketing from a Distance
It refers to the process of offering insurance products without the client's physical presence, which is developed via phone, email, short-term messaging services (SMS), and other online or web administrations;
Important Management Staff
The Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Marketing Officer (CMO), Chief Financial Officer (CFO), Head of Technical, and Head of IT etc are implied by the KMP and are considered to be important management staff;
Lead
It discusses the information that may be used to identify a person who has visited the website of an insurance web aggregator and provided specific contact information in order to obtain information about the features, pricing, and advantages of various insurance products;
System for Lead Management
This procedure involves the licensed insurance web aggregator using software to record, filter, validate, grade, distribute, follow up, and conclude leads from inquiries received on the Insurance Web Aggregator's website;
Principal Officer
He or she may be a director, shareholder, promoter, or someone else entirely and is responsible for the overall operation of the online aggregator.
Eligibility Criteria For Insurance Web Aggregator License
The following requirements must be met by applicants in order to get the Insurance Web Aggregator Registration Certificate or License:
• The applicant must be a firm registered under the Companies Act of 2013
Or
Limited Liability Partnership (LLP) which is registered under the Limited Liability Partnership Act of 2008 and it must be Indian.
• The company's or LLP's Memorandum of Association (MoA) should state that its primary goal is to aggregate insurance goods online.
• Other than aggregating insurance websites, the applicant should not be involved in any other commercial ventures.
• According to the rules of the Insurance Regulatory and Development Authority of India (IRDAI), the applicant has not been registered or hired to serve as an insurance/microinsurance agent, commercial agent, surveyor as well as loss assessor, Third Party Administrator (TPA), insurance marketing firm, or another kind of intermediary.
• There should be no referral agreements between the applicant and an insurer.
• The Principal Officer has completed training, passed the IRDAI test, and possesses the credentials listed in Form C of the Regulations.
• The fit and appropriate standards outlined in Form D of the Regulations have been met by the principal officer, promoter, director, partner, shareholder, or other important managerial people.
• The individual (Authorized Verifier) who works for the insurance web aggregator or telemarketer to engage in insurance solicitation and procurement via telemarketing and distance marketing has successfully completed the tests required by IRDAI.
Application For Insurance Web Aggregator License
The registration application in Form A must be accompanied by a non-refundable fee of Rs. 10,000 plus taxes. The application has to be sent in by Demand Draft (DD) payable to IRDAI or electronic payment transfer. Candidates must include in their application if they intend to employ outsourcing and telemarketing services or facilities.
• The candidate must meet the aforementioned qualifying requirements.
• No one should be disqualified under the Insurance Act, including the directors, chief executive, partners, managing director, senior management staff, or principle officer.
• The IRDA has not rejected any prior applications from individuals who are directly or indirectly linked to the applicant.
• In order to make investments, the applicant's promoter, partners, or shareholders must be in a stable financial situation.
• If the IRDA offers a chance to provide information or clarification, it must be presented within 30 days; the applicant should have a dedicated website that may provide an insurance web aggregate for insurance solicitation.
• This insurance online aggregators must hold at least Rs. 25 lakh in capital paid out in the form of equity shares if it is a business registered under the Companies Act of 2013. The individual applying must have at least 100% of the necessary minimum capital in their net worth.
• Each year on March 31 and September 30, the candidate should assess their current net worth. The applicant has been given 15 days to alert IRDAI of any non-compliance. After then, the applicant has 30 days to reinstate the criteria after verifying them with the IRDAI.
• After 30 days, if the applicant is still unable to maintain their net worth, the insurance aggregation company ought to be closed.
Grant Of Insurance Web Aggregator License
Form E of Schedule I, the IRDAI will provide the applicant a certificate of registration so that it can operate as an Insurance Web Aggregator. If the applicant satisfies the conditions outlined in the Regulations and the IRDAI determines that granting registration to the applicant will benefit the policyholder, the IRDAI shall issue this certificate of registration.
• The candidate must abide by the rules and guidelines that the IRDAI which specifies.
• The applicant is limited to requesting insurance and obtaining several insurance policies that are appropriate for their financial situation (specific details are stated in From Q of the Regulations).
• Any significant changes or inaccurate information in the previously submitted papers must be reported to IRDAI by the applicant, who must also abide by the terms of the IRDAI Act, 1999.
• Within 14 days of receiving a grievance, online aggregators must take appropriate action to address it. The Web Aggregator will keep records in the manner that the Authority specifies, including data about policies and authorized verifiers.
Documents Required For Insurance Web Aggregator License
Form B of the Regulations lists the documentation that the applicant must provide with their application for an Insurance Web Aggregator License. The principal officer must self-attest each document that is presented.
• A copy of the Registration Certificate or Incorporation Certificate issued by the Registrar of Companies is needed for the process.
• An authenticated copy of the Memorandum of Association and Articles of Association or the LLP Agreement.
• A copy of PAN card for the company.
• The resumes of the senior officer with qualifications and the directors or authorized partners of the limited liability partnership.
• A list of the people in charge of or in control of the contents of the insurance online aggregation website, as well as screenshots of the proposed website and documentation of domain name registration and hosting location confirmation.
• The Certificate of CA for the company's net worth and shareholding pattern, the copies of the Audited Accounts and Annual Report for the last three fiscal years and also the business plan for the next three years.
• The specifics of the infrastructure, particularly the IT infrastructure that is accessible.
• A functional responsibility chart for the organization.
• The chief officer's and authorized verifiers' certificates of training and examination.
• Information and statements on the "fit and proper" requirements listed in Form D of the Regulations made by the chief officer, directors, promoters, partners, and senior management staff.
• Notarized Self Certification signed by two LLP directors or designated partners attesting to the following.
• The company's principal officer and directors are not deemed to be mentally incompetent by a court of competent jurisdiction, and they have not been found guilty of any major crimes, including theft, deception, breach of trust, forgery, or aiding and abetting an attempt to commit any of these crimes within the last five years. The applicants and directors have not engaged in any economic offenses throughout the past three years.
• The company should ensure that none of its directors or employees work for or represent any other insurance-related organization, and that its net worth does not drop below Rs. 25 lakh throughout the certificate of registration period.
• According to the applicable IRDAI rules, neither the applicant nor its directors nor the principal officer are registered as corporate agents, insurance agents, microinsurance agents, surveyors, TPAs, insurance brokers, loss assessors, or other insurance intermediaries.
Validity Of Insurance Web Aggregator License
The validity of Insurance Web Aggregator License or you can say Registration Certificate issued by IRDAI is for three years only after its issuance. The registration may be renewed thirty days prior to its expiration.
Renewal Of Insurance Web Aggregator License
Before 30 days after the registration expires, the insurance web aggregator must submit an application in Form F to IRDAI to renew their registration. However, the web aggregator may also submit an application for registration renewal in the way that IRDAI specifies, up to ninety days before to the registration's expiration.
The registration renewing application must be submitted with the documents listed in Form G of the Regulations and a renewal fee of Rs. 25,000 plus taxes.
If the application fails to submit the application within 30 days of registration to IRDAI an additional fee of Rs. 100 per day will be imposed. If payment of an additional Rs. 750 fee, you can request the authority for renew to IRDAI up to 60 days after the termination of registration date.
Why eStartIndia for Insurance Web Aggregator License?
One website that can help with getting an Insurance Web Aggregator License is eStartIndia. In order to ensure compliance with IRDAI regulations and facilitate access to revenue opportunities, they provide services to assist businesses in navigating the process of becoming licensed web aggregators in the insurance sector. Businesses may expedite the licensing procedure and concentrate on developing their online insurance comparison platform and associated services by utilizing eStartIndia's experience.
• Regulatory Compliance Expertise: eStartIndia focuses on assisting companies in meeting regulatory standards, such as those established by the IRDAI for insurance online aggregators.
• Simplified Application procedure: They may save you time and effort by assisting you with the sometimes difficult license application procedure.
• Concentrate on Business Growth: eStartIndia takes care of the licensing details, freeing you up to focus on creating your insurance comparison website, advertising your offerings, and cultivating connections with insurance companies.
• Potential for Revenue Generation: Obtaining a license as an insurance online aggregator gives you the chance to get paid commissions for policies that are sold on your platform, which might generate income.
• Developing Credibility and Trust: Having an eStartIndia license that has been authorized by the IRDAI can help your platform become more credible and trustworthy to clients looking for insurance products.
• Improved customer Experience: By providing extra services like online insurance purchasing, premium calculators, and grievance redressal, licensed web aggregators can enhance the customer experience in general.
Author:
Leave a Comment
Previous Comments