All you need to know about Insurance Web Aggregator License

Currently, there are twenty-four Insurance companies in India, but how do you know which company offers you the best service as per your convenience? So, IRDA introduced the solution to your problem, Insurance Web Aggregators.

Insurance Web Aggregators operate online portals that help customers in comparing insurance products and services offered by different insurers and companies. Customers can find all the information about products and insurance-related services in one place with the help of Insurance Web Aggregators. Let’s proceed further to know more about the Insurance Web Aggregators and the License to function as Insurance Web Aggregators.

What is Insurance Web Aggregator License?

Insurance Web Aggregator license is issued by IRDA (Insurance Regulatory and Development Authority) which is governed under IRDAI Regulations, 2017.

Insurance Web Aggregators are insurance intermediaries that compare prices, schemes, products, and services offered by different insurers and insurance companies.

What is the main objective of Insurance Web Aggregators?

The main objective of Web Aggregators is to monitor and supervise their website for customer interface so that the public can find different offerings, schemes and related information of various insurance products and services at one place/website.

What activities should be undertaken by Insurance Web Aggregators?

• Web Aggregators can sell web products online of different insurance companies on a single website.
• Web Aggregators can compare the products of different insurers on a single website for their customers.
• Insurers can also generate leads with the help of web aggregators.
• Web aggregators can sell insurance products with the help of distance marketing and telemarketing.

What are the essentials for Insurance Web Aggregators?

• Web Aggregators should have a board-approved policy of solicitation insurance products.
• The mechanism for designing the Web Aggregators’ website should include types of policies, multiple tie-ups.
• Insurance Web Aggregators need to maintain the professional indemnity cover throughout their validity period.
• They are not allowed to provide any discount to their customers or prospects which might violate the regulations of Section 41 of Insurance Act, 1938.
• Web Aggregators have to maintain an agreement with their insurers in a prescribed format.
• These Aggregators are not allowed to advertise or push the products of any particular insurer or company with the medium of its website or through other marketing approaches.

What are the eligibility criteria for obtaining Insurance Web Aggregator License?

• Company registered under Companies Act, 2013.
• An applicant should be a person defined under Section 2 (K)
• Limited Liability Partnership incorporated under the Limited liability Partnership Act, 2008.
• Any other person recognized by IRDA for performing as Insurance Web Aggregator.
• The minimum capital requirement for an applicant registering as Insurance Web Aggregator is Rs.25 laks.

Capital requirement

• For registering as a company registered under the Companies Act, 2013, the capital must be in the form of issued and subscribed capital.
• If the company is LLP (Limited liability Partnership), then it should be in the form of cash only.

Minimum net-worth requirement

Insurance Web Aggregators have to maintain Rs.25 lakhs as net worth all times. They also have to review their net worth on a half-yearly basis, i.e., on 30^th September and on 31^st March.

What is the application fee for registering as Insurance Web Aggregator?

The application for applying as a web Aggregator is Rs. 10k or Rs.10000 which is non-refundable plus applicable taxes on the same.

The payment can be made both offline and online. In the case of online payment, the applicant can prefer electronic transfer. But, if the applicant wants to pay offline, then he/she can pay through DD (Demand Draft)  payable in favor of the “Insurance Regulatory [1] and Development Authority of India” at Hyderabad.

What are the documents required for obtaining Insurance Web Aggregator License?

• Certificate of Incorporation
• MOA
• AOA
• Details of directors or shareholders
• Data of Associated and interested companies
• Information regarding applicant’s Principle banker
• Organizational structure with all inflows and outflows
• Details of statutory auditors
• Details of associated KYC
• Business plan of three years
• Proof of domain name registration
• Audited annual report of three years
• PAN and GST of the company
• Aspects of settled or pending disputes, if any
• NWC (Net Worth Certificate) by CA
• Examination and Training of Principal Officers
• User Id and password for the verification of the Aggregator website during close over.

What is the procedure for granting Insurance Web Aggregators License?

After satisfied with all the requirements and interests of policyholders, the authority will grant a license to the applicant as per Form E of Schedule I of the regulations to beginning their operations as Web Aggregators.

In case, the authority rejects the application or the applicant surrenders; then the applicant needs to file the new application again after completing the tenure of one year from the cancellation/renewal/surrender.

What is the validity of the Insurance Web Aggregator License?

The validity of Web Aggregator’s license is three years until the suspension or cancellation of permission by the authority. 

What is the compliances requirement for Insurance Web Aggregators?

• The Web Aggregators should submit half-yearly reports to the authority. They can send it according to the list of insurers, the policies plan, and other formats prescribed by the administration.
• The Principal Officer of IWA (Insurance Web Aggregator) should submit the Certificate to the authority at the end of each financial year. The Certificate will state that Web Aggregators have complied with all the provisions during the fiscal year.

Conclusion

Therefore, Insurance Web Aggregators play a crucial role in providing necessary information to the public related to insurance services and its associated products. The registration process as Insurance Web Aggregators is not so easy and requires enormous documentation. So, it will be advisable to hire professional services for your assistance in this registration.

Also, Read:How to Get the Certificate of Insurance Web Aggregator?