{"id":4295,"date":"2019-04-08T09:00:56","date_gmt":"2019-04-08T03:30:56","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=4295"},"modified":"2020-06-26T12:31:42","modified_gmt":"2020-06-26T07:01:42","slug":"insurance-web-aggregator-regulations","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/","title":{"rendered":"Insurance Web Aggregators -IRDA Regulations 2017"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In its <strong>notification dated 13th April 2017<\/strong>, the <strong>Insurance Regulatory<\/strong> and <strong>Development Authority of India<\/strong> laid down the IRDAI (<strong>Insurance Web Aggregators<\/strong>) Regulations, 2017 for Insurance aggregators. With the introduction of these rules,<strong> IRDA aims to supervise and monitor Web Aggregators<\/strong> to curb aggressive selling of insurance products and clarify various ambiguities that existed in the erstwhile rules.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a5b39875b0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a5b39875b0\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#What_are_Insurance_web_aggregators\" title=\"What are Insurance web aggregators?\">What are Insurance web aggregators?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#What_are_the_benefitsrole_of_Insurance_Web_Aggregators\" title=\"What are the benefits\/role of Insurance Web Aggregators?\">What are the benefits\/role of Insurance Web Aggregators?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#Key_aspects_of_the_IRDAI_Insurance_Web_Aggregators_Regulations_2017\" title=\"Key aspects of the IRDAI (Insurance Web Aggregators) Regulations, 2017\">Key aspects of the IRDAI (Insurance Web Aggregators) Regulations, 2017<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#Conditions_regarding_application_for_registration_as_a_web_aggregator\" title=\"Conditions regarding application for registration as a web aggregator:\">Conditions regarding application for registration as a web aggregator:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#Conditions_relating_to_Capital_requirement\" title=\"Conditions relating to Capital requirement:\">Conditions relating to Capital requirement:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#Conditions_relating_to_Net_worth\" title=\"Conditions relating to Net worth\">Conditions relating to Net worth<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#Grant_of_registration_certificate_by_IRDA\" title=\"Grant of registration certificate by IRDA\">Grant of registration certificate by IRDA<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#Validity_of_certificate_of_registration\" title=\"Validity of certificate of registration:\">Validity of certificate of registration:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#Rejection_of_certificate\" title=\"Rejection of certificate\">Rejection of certificate<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#Renewal_of_Registration_of_Insurance_Web_Aggregator\" title=\"Renewal of Registration of Insurance Web Aggregator\">Renewal of Registration of Insurance Web Aggregator<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#Other_conditions_on_corporate_governance\" title=\"Other conditions on corporate governance\">Other conditions on corporate governance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/learning\/insurance-web-aggregator-regulations\/#Disclosures_to_the_IRDA\" title=\"Disclosures to the IRDA\">Disclosures to the IRDA<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Insurance_web_aggregators\"><\/span><strong>What are Insurance web aggregators?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Insurance Web Aggregators are online portals<\/strong>, which provide customers on various information on <strong>insurance products<\/strong> of different insurers. They serve as a platform for analyzing the <strong>products of different insurers<\/strong> and deciding which one to buy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_benefitsrole_of_Insurance_Web_Aggregators\"><\/span><strong>What are the benefits\/role of Insurance Web Aggregators?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Web aggregators provide the following benefits:<\/strong><\/p>\n\n\n\n<ul><li>They help in comparing <strong>different insurance products<\/strong> by providing all the necessary information.<\/li><li>It saves time and effort in comparing multiple products offline.<\/li><li>They serve as a platform for insurers to display their products and attract customers.<\/li><\/ul>\n\n\n\n<p>However, <strong>Insurance aggregators cannot provide ratings and reviews<\/strong> to any product. Also, they <strong>cannot indulge in advertisements for the products<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_aspects_of_the_IRDAI_Insurance_Web_Aggregators_Regulations_2017\"><\/span><strong>Key aspects of the <\/strong><strong>IRDAI (Insurance Web Aggregators) Regulations, 2017<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some key aspects of the regulations:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_regarding_application_for_registration_as_a_web_aggregator\"><\/span><strong>Conditions regarding application for registration as a web aggregator:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>The Insurance Web Aggregator shall be a company registered under the <strong>Companies Act, 2013<\/strong> <a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\">[1]<\/a> <\/li><li>The application for obtaining the certificate of registration as \u201cInsurance Web Aggregator\u201d shall be made to <strong>IRDA in Form A<\/strong> <a href=\"https:\/\/www.irdai.gov.in\/ADMINCMS\/cms\/frmGeneral_NoYearList.aspx?DF=frm&amp;mid=9.4.1\">[2]<\/a> .<\/li><li>A non-refundable fee of rupees ten thousand plus applicable taxes has to be <strong>paid along with the application<\/strong> by way of a demand draft<\/li><li>The application will not be processed without the application fee.<\/li><li>Option for seeking <strong>permission for Outsourcing and Telemarketing<\/strong> functions\/ facility shall be specifically mentioned in the Application Form.<\/li><li>All other conditions mentioned in these Regulations are to be fulfilled by the applicant along with the submission of necessary documents as mentioned in Form B<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_relating_to_Capital_requirement\"><\/span><strong>Conditions relating to Capital requirement:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>The minimum paid-up capital\/ contribution of an insurance web aggregator should be rupees twenty- five lakhs.<\/li><li>The capital of the <strong><a href=\"https:\/\/swaritadvisors.com\/insurance-web-aggregator-license\">Insurance Web Aggregators<\/a><\/strong> shall be consisting of Equity Shares only.<\/li><li>The contribution of partners in case of LLP shall be made only in cash.<\/li><li>The <strong>shares of the Insurance Web Aggregator<\/strong> at any time shall not be pledged in any manner or <strong>form to secure credit<\/strong> or any other facility<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_relating_to_Net_worth\"><\/span><strong>Conditions relating to Net worth<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>The net worth of <strong>an Insurance Aggregator<\/strong> must not be less than <strong>below 100% of the minimum capital requirements<\/strong> or contribution<\/li><li><strong>Insurance Web Aggregators<\/strong> shall every six months review the status of the <strong>net-worth as at 30th September, and 31<\/strong><sup><strong>st<\/strong><\/sup><strong> March<\/strong> every year<\/li><li>Any <strong>non-compliance<\/strong> shall be reported to <strong>IRDA within 15 days<\/strong>.<\/li><li>The requirements of minimum net worth shall be met within 30 days of reporting and the intimation shall be sent to <strong>IRDA<\/strong><\/li><li>If any <strong>insurance web aggregator<\/strong> fails to maintain the minimum net-worth even after 30 days, it shall immediately <strong>stop indulging in insurance related business\/ activity.<\/strong><\/li><li>A certificate on the net worth of the <strong>Insurance web aggregator<\/strong> duly certified by a <strong>Chartered Accountant<\/strong> shall be submitted to IRDA every year after the <strong>finalization of books of accounts<\/strong>.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Grant_of_registration_certificate_by_IRDA\"><\/span><strong>Grant of registration certificate by IRDA<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When the application is filed after fulfilling all the required conditions and after submitting all the required documents, the <em>IRDA will accept the application and grant the registration certificate to the applicant<\/em>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Validity_of_certificate_of_registration\"><\/span><strong>Validity of certificate of registration:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The <strong>certificate of registration<\/strong> issued holds <strong>validity<\/strong> for a period of three years from the date of its issue unless the same is suspended or cancelled by the IRDA.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rejection_of_certificate\"><\/span><strong>Rejection of certificate<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An <strong>incomplete application<\/strong> is liable for rejection. However, before rejection, an opportunity will be given to complete the <strong>formalities within 30 days<\/strong>. If no intimation is received within <strong>30 days<\/strong>, the <strong>application<\/strong> will be rejected,<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Renewal_of_Registration_of_Insurance_Web_Aggregator\"><\/span><strong>Renewal of Registration of Insurance Web Aggregator<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Application for renewal of registration<\/strong> is <strong>filed in Form F<\/strong> thirty days before the <strong>expiry of the registration<\/strong>.<\/li><li>The requisite documents that shall be submitted by the applicant along with the <strong>renewal application<\/strong><\/li><li>The <strong>renewal application<\/strong> shall also be accompanied with a fee of <strong>Twenty Five thousand rupees plus applicable taxes<\/strong> paid by way of a bank draft.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_conditions_on_corporate_governance\"><\/span><strong>Other conditions on corporate governance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>Every <strong>Insurance Web Aggregator<\/strong> shall have a policy on \u201c<strong>manner of soliciting insurance products<\/strong>\u201d approved by the Board, which shall be reviewed at least once in three years.<\/li><li>Every <strong>Insurance Web Aggregator shall maintain a professional indemnity insurance<\/strong> cover throughout the registration period<\/li><li>Prior approval of IRDA shall be obtained for any change in its name.<\/li><li>There should not be any arrangements between Insurance Web Aggregators and with the insurers which are against the interests of policyholders;<\/li><li>Any arrangements entered into between web aggregators and the insurer shall comply with the <strong>details mentioned in Form L<\/strong>.<\/li><li>Insurance Web Aggregator shall not indulge in the promotion of any product of a particular company through any mode.<\/li><li>Every <strong>Insurance Web Aggregator<\/strong> shall prepare a balance sheet, profit &amp; loss account; an income and expense statement; a statement of cash\/fund flow for every Financial Year.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disclosures_to_the_IRDA\"><\/span><strong>Disclosures to the IRDA<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>The <strong>Web Aggregator<\/strong> shall make all such <strong>disclosures to IRDA<\/strong> as given in Form N.<\/li><li>The <strong>Insurance Web Aggregator<\/strong> shall furnish half-yearly returns to the<strong> IRDA before 31<\/strong><sup><strong>st<\/strong><\/sup><strong> October or 30<\/strong><sup><strong>th<\/strong><\/sup><strong> April<\/strong> giving details its <strong>business insurer<\/strong> wise and product wise.<\/li><li>On examination of the returns furnished by the <strong>Web Aggregator<\/strong>, the <strong>IRDA<\/strong> may issue such directions or advice to the <strong>web aggregators<\/strong> as it may deem fit<\/li><\/ul>\n\n\n\n<p><strong>Conclusion: <\/strong><\/p>\n\n\n\n<p>With the introduction of these regulations, all kinds of insurance products can be now sold on the web aggregators\u2019 portals. It also raised the ticket size of the policies from fifty thousand to One lakh fifty thousand. Further, remuneration on zero-commission policies is allowed to be paid to the <strong>Insurance aggregators<\/strong>. It has also streamlined the business of Insurance <strong>Web aggregators<\/strong> thus helping in a significant way to curb aggressive selling of insurance products<strong>.<\/strong><\/p>\n\n\n\n<p class=\"text-left\"><b>Also, Read<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/what-are-the-fundamental-functions-of-web-aggregators\/\">What are the Fundamental Functions of Web Aggregators?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In its notification dated 13th April 2017, the Insurance Regulatory and Development Authority of India laid down the IRDAI (Insurance Web Aggregators) Regulations, 2017 for Insurance aggregators. With the introduction of these rules, IRDA aims to supervise and monitor Web Aggregators to curb aggressive selling of insurance products and clarify various ambiguities that existed in [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":4304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[545],"tags":[377,487,682],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/4295"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=4295"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/4295\/revisions"}],"predecessor-version":[{"id":11288,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/4295\/revisions\/11288"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/4304"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=4295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=4295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=4295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}