Insurance Web Aggregator License

Insurance Web Aggregator License

Who is an Insurance Web Aggregator?

The web aggregator is the Insurance Intermediary maintaining a website which provides interface to the Insurance prospects for price comparison and information of products of different insurers and other related matters.

The activities of the IRDA (Web Aggregates) are governed by Insurance Regulatory and Development Authority of India (Insurance Web Aggregates) Regulations, 2017.

Eligibility criteria for certificate of registration of the Insurance Web Aggregator:

  • The applicant shall be a person, which includes
  • A company formed under the Companies Act, 2013 (18 of 2013); or
  • A limited liability partnership formed under the Limited Liability Partnership Act, 2008;
  • Any other person recognized by the Authority to act as an Insurance Web Aggregator;
  • The Memorandum of Association, in the case of Company, shall have the main object of carrying out the business of web-aggregation of Insurance products;
  • The applicant shall not be engaged in any activity other than the main object i.e, web aggregation of Insurance products.
  • The principal officer shall have the prescribed qualification and shall have passed the examination of Insurance web Aggregator as prescribed by the Authority;
  • Such other conditions as may be prescribed by the Authority

Application for the grant of registration as Web Aggregator:

  • The application seeking registration, complete in all respects, shall be made in Form A of Schedule-I of IRDA (Web Aggregator) Regulations, 2017;
  • The application shall be made along with the Non-refundable fees of INR 10,000/- paid either by the way of Demand Draft or by the electronic transfer of funds in the favor of Insurance Regulatory and Development Authority of India.

Capital Requirements

  • Any applicant seeking registration under IRDA (Web Aggregator) Regulations, 2017 shall have the minimum net worth/paid up capital of INR twenty-five lakhs.
  • In case the proposed Insurance Web Aggregator is a company registered under Companies Act, 2013, the capital shall be issued and subscribed in the form of Equity Shares.
  • In case of LLP, the contribution of partners shall only in the form of cash;
  • The shares shall not be pledged in any form or manner to secure credit or any other facility and shall be unencumbered at all the times.

Net Worth Requirements

  • After the issue of certificate of registration, the net worth of an Insurance Web Aggregator shall at no time fall below 100 % of the minimum capital requirements;
  • The status of its net worth shall be reviewed by every Insurance Web Aggregator every half year as at 30th September, and 31st March every year.
  • A net worth certificate duly certified by a Chartered Accountant shall be submitted to the Authority every year after finalization of books of accounts.

Process for the grant of Registration

  • On being satisfied with fulfillment of the requirements mentioned in these regulations and the covering of the interest of the policyholders, the certificate of registration shall be granted by the Authority as per Form E (Certificate of Registration) of Schedule I of these Regulations
  • In case the certificate of registration is canceled/ surrendered or renewal rejected by the Authority for any of the reasons, the applicant shall make the fresh application only after lapse of one year from the effective date of such cancellation/ surrender or rejection of renewal of registration.

Validity of the Certificate of Registration

 The certificate shall be valid for a period of three years from the date of issue unless the same is canceled or been suspended.

Rejection of application for registration

The application seeking the grant of registration as Insurance web aggregators shall be rejected by the Authority on the following grounds:

  • Incomplete or improper information;
  • Failure to furnish the information asked by the Authority within 30 days of the receipt of the information. In such case, the application will be considered as non-submission only.

Renewal of the registration

  • The application for renewal shall be made at least 30 days before the expiry of the term for which the license is being issued by the Authority;
  • The application for renewal shall be accompanied by the fees for INR 25,000 and shall be complete in all respects and must be filed along with all the necessary documents;
  • No Insurance Web Aggregator is allowed to carry out the functions of the Insurance Web Aggregator, without a valid certificate of registration issued by the Authority

Scope of Activities of an insurance web aggregator

 The insurance web aggregator, holding a valid certificate of registration, shall be carrying one or more of the following activities:

  • Display of product comparisons on the website;
  • Transmission of leads to the insurers ;
  • Sale of the insurance online;
  • Sale of the insurance by telemarketing mode or any other digital marketing mode.

Remuneration earned by insurance web aggregator

  • No fees shall be charge for transmission of leads from insurance web aggregator to insurer;
  • A flat fee of not exceeding Fifty thousand per year towards each product displayed by the Insurance Web Aggregator in the comparison charts of its web is payable to him.
  • Any other fees as governed by the Authority.

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