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What are the Documents Required for Obtaining Insurance Web Aggregator License?

Swarit Advisors

| Updated: Sep 12, 2019 | Category: IRDA Advisory, News

Web Aggregator is an online portal for enquiring about financial and insurance products. This is a useful platform for any individual for getting the quote and buying diverse Insurance products or policies through the service providers sitting at one point. Insurance Web Aggregators are companies: registered under the Companies Act and regulated under the Insurance Regulatory & Development Authority. These regulatory bodies make sure that online websites are operated and maintained online for clients who are willing to gather information based on Insurance policies and products

Insurance Web Aggregator- An Overview

Web aggregator is a company registered under Companies Act, 2013 or 1956 and also regulated under IRDAI that maintains operates & owned an online website for Insurance products & services.

Web Aggregators do help the client to compare the different policies of different companies. As these Web Aggregators have a tie-up with many insurance companies and thus they ask for all the information about the policies & products of these companies which is then be disclosed on the Website as per the set format. Web Aggregators don’t give ratings or reviews to these Insurance companies claiming any of them to be the best sellers. These web aggregators can’t display any information or service other than that of Insurance products or policies. Also, they are not allowed to do any form of advertisement.

Conditions for Insurance Web Aggregator

Following are certain key-points to be kept in mind by the aggregator throughout:

  • The net worth of Insurance Web Aggregator shall not fall below 100% of the minimum paid-up capital requirement. 
  • Net worth status shall be reviewed half-yearly along with the reporting of any non-compliance.
  • In case of any noncompliance, Web Insurance Aggregator has to immediately stop the business.
  • Chartered Accountant shall issue a net worth certificate duly certified by CA is issued, which has to be submitted to an authority by Insurance Web Aggregator.

Eligibility for Insurance Web Aggregator License

Following are the necessity for getting the certificate of registration of Web Aggregator license:

  • Company registered under the provisions of Companies Act,2013
  • LLP registered under the LLP Act, 2008.
  • Any other person as recognized by IRDA.
  • If an applicant is a company there shall be authorization in its memorandum of association for carrying the business of Web-Aggregator.
  • An applicant should not be registered or proposed to be registered as an Insurance agent, corporate agent, or any other Insurance intermediary.
  • Principle officer has undergone the training and shall possess the necessary qualification as prescribed in Form C of schedule I.
  • Principle officer, Directors, Promoters, Partners and KMP shall fulfill the Fit & Proper criteria specified for this purpose as per Form D of Schedule I.

Steps for getting License for Insurance Web Aggregator

Following are the procedure for the application to the authority for seeking the grant of certificate of registration:

  • An applicant shall apply to the authority in Form A of Schedule I of IRDA (Web Aggregator) Regulation, 2017 along with the non-refundable fee of INR 10,000/-.
  • Fees can be paid online or through Demand Draft drawn in the favor Insurance Development & Regulatory Authority.
  • Take the permission for Outsource & Telemarketing Functions in an application.
  • Attach the necessary documents with an application.
  • An application filed to the authority is scrutinized and verified for its correctness. In case of any incompleteness, an authority may order for further information or documents.
  • An incomplete application can be rejected by an authority by giving 30 days for furnishing such unfurnished information failing in which an application is returned and an applicant has to file a fresh application with fees.
  • An applicant who is aggrieved by the decision of authority can file an appeal to the Securities Appellant Tribunal (SAT) within 45 days of such order.
  • If an application is complete in all respect, the authority may grant the Certificate of Registration in Form E of Schedule I.

Documentation for obtaining Insurance Web Aggregator License

Following is the list of documents required to be annexed with an application:

  • Copy of Certificate of Incorporation in case an applicant is a company.
  • Copy of MOA & AOA
  • Copy of PAN of a company
  • Details of directors & their qualification
  • The CV of Principal Officer along with his qualification
  • Bank draft of INR 10000 drawn in the favor of IRDA
  • An affidavit certifying that no director or principal officer has
  • indulged in any fraudulent activity
  • is not involved or holding any directorship in any other insurance company
  • that the company or its directors, employee are not the related parties of any insurance company, insurance broker, insurance agent,
  • That the net worth of the Company has never fallen below INR 10 Lakhs.
  • Screen shorts or photocopies of the proposed website of an Insurance Aggregator.
  • Complete details & the list of the person responsible for the maintenance & operation of the website.
  • Certificate by the Chartered Accountant certifying the shareholding & net worth of the company at the time of submission of application.
  • Business plan made for the subsequent three years.
  • Complete details of Infrastructure details.
  • Organizational Chart with details of functional responsibilities
  • Audited financial reports & financial statements for the preceding three years.

Renewal of License

Unless an authority suspends or cancels the certificate of registration, such license is valid for three years from the date of issuance that can be renewed as per the following:

  • An application in Form F of Schedule II for renewal of a license shall be submitted by an Insurance Web Aggregator at least 30 days before the expiry of the certificate of registration to the authority supporting with necessary documents.
  • An application shall be accompanied by a renewal fee of INR 25,000/- plus applicable taxes.
  • No person is allowed to carry on the business of Insurance Web Aggregator unless he has a valid certificate or license for the same.
  • On being satisfied and in case the renewal application is complete in all terms, an authority will issue a renewed certificate of registration as per Form H of Schedule II.
  • Authority can also refuse to renew in case it comes to the knowledge of an authority that an applicant has not carried on any business during the previous period of registration.

Documents required for renewal of an Insurance Web Aggregator License

A list of the documents needed in case of renewal is similar to that required for the first time of applying for the license. Following is the list of documents required to be annexed with an application for renewal:

  • Copy of Certificate of Incorporation with any change during the period of License.
  • Copy of MOA & AOA with any changes made during the license period.
  • Bank draft of INR 10000 drawn in the favor of IRDA
  • Details of directors & their qualification
  • The CV of Principal Officer along with his qualification
  • An affidavit certifying that no director or principal officer has
  • indulged in any fraudulent activity
  • is not involved or holding any directorship in any other insurance company
  • that the company or its directors, employee are not the related parties of any insurance company, insurance broker, insurance agent,
  • That the net worth of the Company has never fallen below INR 10 Lakhs.
  • There is no violation or non-compliance of any act, rule, regulation by the Company or its director or employees during the previous period of the license.
  • Screenshots or photocopies of any changes made on the website of an Insurance Aggregator. 
  • Complete details & the list of the person responsible for the maintenance & operation of the website.
  • Certificate by the Chartered Accountant certifying the shareholding & net worth of the company at the time of submission of application.
  • Business plan made for the subsequent three years.
  • Complete details of Infrastructure details.
  • Organizational Chart with details of functional responsibilities
  • Audited financial reports & financial statements for the preceding three years.

Minimum Contribution Requirement

  • Company: Minimum paid-up share capital: Rupees Twenty Five Lakhs
  •  LLP:  Minimum Contribution: Rupees Twenty Five Lakhs.
  • A minimum contribution of LLP has to be bought only in cash.
  • Equity Share Capital of Web Aggregator Company cannot be pledged to secure any form of credit.
Swarit Advisors

Swaritadvisors.com is technology motivated platform establishing the specialized legal & Financial advisory services in India. We are dedicated to helping startups and MNC in solving legal, Taxation and compliance related to starting and running their business around the world.

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