{"id":6294,"date":"2019-09-30T14:33:14","date_gmt":"2019-09-30T09:03:14","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=6294"},"modified":"2019-12-18T17:22:32","modified_gmt":"2019-12-18T11:52:32","slug":"what-are-the-norms-of-insurance-web-aggregator-by-irdai","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/what-are-the-norms-of-insurance-web-aggregator-by-irdai\/","title":{"rendered":"What are the Norms of Insurance Web Aggregator by IRDAI"},"content":{"rendered":"\n<p>A web Aggregator is an online\nintermediary that maintains a website for rendering the details of insurance\nproducts and policies. The website maintained by the web aggregator is useful\nfor comparison of different products and services given by various insurers.\nThese websites provide an interface for the following services:<\/p>\n\n\n\n<ul><li>Price comparison<\/li><li>Comparison of\npolicies provided by\ndifferent insurers<\/li><li>Detailed information on products provided by different insurers.<\/li><li>Eligibility criteria<\/li><li>Rate of premium<\/li><li>Amount assured, etc <\/li><\/ul>\n\n\n\n<p>The Insurance Regulatory and\nDevelopment Authority of India (IRDAI) has framed regulations for governing the\nfunctions and activities of web aggregators to keep a check on the information\nof insurers which are provided to the customers. <\/p>\n\n\n\n<p>Web Aggregators are registered and\nregulated by the Companies Act as well as the Insurance Regulatory Act. <\/p>\n\n\n\n<p><strong><em><a href=\"https:\/\/swaritadvisors.com\/insurance-web-aggregator-license\"> Insurance Web Aggregators <\/a><\/em><\/strong>play a vital role in boosting the online market for insurance products. Web Aggregators are referred to as online insurance intermediaries as they allow the customer to purchase and compare the insurance products and services online. <\/p>\n\n\n\n<div class=\"browse\">\n<p>Browse through our articles on services provided at <a href=\"https:\/\/swaritadvisors.com\">Swarit Advisors<\/a>, and just let us know if we can help you with your NBFC registration or NBFC for Sale or RBI Advisory Services.<\/p>\n<div class=\"browse1\">\n<table class=\"table1\">\n<tbody>\n<tr>\n<td><a href=\"https:\/\/swaritadvisors.com\/nbfc-registration\"><span>NBFC Registrtaion<\/a>&nbsp;<\/span><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/nbfc-registration\"><span>FFMC License<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/msme-registration\"><span>MSME Registration<\/span><\/a><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/swaritadvisors.com\/nbfc-takeover-agreement\"><span>NBFC Takeover<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/prepaid-wallet-license\"><span>Prepaid Wallet License<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/nidhi-company-registration\"><span>Nidhi Company Registration<\/span><\/a><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/swaritadvisors.com\/nbfc-for-sale\"><span >NBFC For Sale<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/peer-to-peer-lending-license\"><span >P2P Lending License<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/payment-gateway-license\"><span >Payment Gateway License<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\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-6a3084aeee420\" 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-6a3084aeee420\"  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\/what-are-the-norms-of-insurance-web-aggregator-by-irdai\/#Role_of_Insurance_Web_Aggregators\" title=\"Role of Insurance Web Aggregators\">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-2\" href=\"https:\/\/swaritadvisors.com\/learning\/what-are-the-norms-of-insurance-web-aggregator-by-irdai\/#Regulations_governing_Insurance_Web_Aggregator\" title=\"Regulations governing Insurance Web Aggregator\">Regulations governing Insurance Web Aggregator<\/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\/what-are-the-norms-of-insurance-web-aggregator-by-irdai\/#Boost_in_Insurance_Web_Aggregator\" title=\"Boost in Insurance Web Aggregator\">Boost in Insurance Web Aggregator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/what-are-the-norms-of-insurance-web-aggregator-by-irdai\/#Key-Points_for_Insurance_Web_Aggregator\" title=\"Key-Points for Insurance Web Aggregator\">Key-Points for Insurance Web Aggregator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/what-are-the-norms-of-insurance-web-aggregator-by-irdai\/#Insurance_Web_Aggregators_License\" title=\"Insurance Web\nAggregator\u2019s License\">Insurance Web\nAggregator\u2019s License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/what-are-the-norms-of-insurance-web-aggregator-by-irdai\/#Documentation_for_an_application\" title=\"Documentation for an\napplication\">Documentation for an\napplication<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/what-are-the-norms-of-insurance-web-aggregator-by-irdai\/#Renewal_of_License\" title=\"Renewal of License\">Renewal of License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/what-are-the-norms-of-insurance-web-aggregator-by-irdai\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/what-are-the-norms-of-insurance-web-aggregator-by-irdai\/#What_are_the_documents_required_to_be_annexed_in_Form_F_for_the_renewal_of_the_license\" title=\"What are the documents required to be annexed in Form F for the renewal of the license?\">What are the documents required to be annexed in Form F for the renewal of the license?<\/a><\/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\/what-are-the-norms-of-insurance-web-aggregator-by-irdai\/#Explain_in_brief_the_functions_activities_of_web_aggregators\" title=\"Explain in brief the functions &amp; activities of web aggregators?\">Explain in brief the functions &amp; activities of web aggregators?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_Insurance_Web_Aggregators\"><\/span>Role of Insurance Web Aggregators<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Insurance Web Aggregators improve and enhance the purchase experience of the customers who want to purchase insurance products as they redirect customers to the website of the insurer. Moreover, they assist customers throughout the sale process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Regulations_governing_Insurance_Web_Aggregator\"><\/span>Regulations governing Insurance Web Aggregator<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Earlier, Insurance Web Aggregator and its activities were under the governance of Insurance Regulatory &amp; Development Authority (Web Aggregators) Regulation, 2013 that was superseded by new guidelines issued by an IRDAI with the launch of Insurance Regulatory and Development Authority (Insurance Web Aggregators) Regulation, 2017.<\/p>\n\n\n\n<p>New guidelines of IRDAI has made the\nfollowing this mandatory:<\/p>\n\n\n\n<ul><li>No\ninsurance aggregators are allowed to promote the products or services of any\nparticular insurer. The products are allowed to be sold based on the analysis\nreport. <\/li><li>The\nInsurance Web Aggregators have to display product pricing inclusive of all\ntaxes. <\/li><li>The\nInsurance Web Aggregators forbade from displaying ratings, raking endorsement,\nusing best selling products, etc. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Boost_in_Insurance_Web_Aggregator\"><\/span>Boost in Insurance Web Aggregator<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The IRDAI amendment made to regulate\nthe web aggregators with effect from 2017, has considerably reduced the\nambiguity in the maintenance of websites by Insurance Web Aggregators, which\nhas boosted the number of insurance websites.<\/p>\n\n\n\n<p>IRDAI, in its official gazette,\nnotifies the amendment in rules governing insurance web aggregator and has set\nnew rules with the introduction of IRDAI (Insurance Web Aggregators)\nRegulations 2017.<\/p>\n\n\n\n<p>With the introduction of the new\nrules following are the few changes that can boost the insurance market in\nIndia:<\/p>\n\n\n\n<ul><li>All the insurance products that were not allowed earlier, such as ULIPS- Unit Linked Insurance Plans have been opened for sale on the web aggregator&#8217;s online portal.<\/li><li>The ticket size of the insurance policy which can be put up for sale has increased from INR 50,000 to INR 1.5 Lakhs. This change will help in boosting the sale of bundles insurance products.<\/li><li>Remunerations have been allowed via rewards even on zero-commission policies.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key-Points_for_Insurance_Web_Aggregator\"><\/span>Key-Points for Insurance Web Aggregator<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are key points to be kept\nin mind by the aggregator: <\/p>\n\n\n\n<ul><li><strong>Net Worth:<\/strong> Every Insurance Web Aggregator shall maintain at least 100% of its paid-up capital as its net worth and the same shall be reviewed half-yearly. <\/li><li><strong>Non-Compliance: <\/strong>Aggregator shall immediately stop the business of web aggregator in case of any non-compliance with any regulations such as minimal maintenance of net worth, disclosure, and reporting, etc <\/li><li><strong>Certificate by CA:<\/strong> The web aggregators are required to submit to the IRDAI a certificate stating its net worth certificate issued by a Chartered Accountant.<\/li><li><strong>Minimum Capital:<\/strong> Insurance web aggregators can be registered as a company with a minimum paid-up capital of INR 25 Lakhs or as an <strong><em><a href=\"https:\/\/swaritadvisors.com\/limited-liability-partnership\" target=\"_blank\" b=\"\" rel=\"noopener noreferrer\">LLP<\/a><\/em><\/strong> with a minimum contribution of INR 25 Lakhs. <\/li><li><strong>Training &amp; Qualification<\/strong>: Principal officer of the Insurance Web Aggregator must be a person who has undergone the necessary training and has the prescribed qualification as mentioned in Form C of Schedule I of IRDAI (Insurance Web Aggregators) Regulations, 2017. <\/li><li><strong>Criteria to be met:<\/strong> The criteria as mentioned in Form D of Schedule I of IRDAI (Insurance Web Aggregators) Regulations, 2017. <\/li><li>&nbsp;Must be met by the Principal officer, Directors, Promoters, Partners, and KMP.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insurance_Web_Aggregators_License\"><\/span>Insurance Web\nAggregator\u2019s License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following is the procedure for the application to the\nauthority for seeking the grant of certificate of registration:<\/p>\n\n\n\n<ul><li>Apply in Form-A of Schedule I of IRDAI (Insurance Web Aggregators) Regulations, 2017. <\/li><li>A non-refundable fee of INR 10,000\/- shall be deposited at the\ntime of application either online or via Demand Draft.<\/li><li>Application\nto be made along with the necessary documents <\/li><\/ul>\n\n\n\n<p>After an application is submitted with the authority, the same is scrutinized and verified. If the submitted application is correct and complete as per the guidelines of the IRDAI (Insurance Web Aggregators) Regulations, 2017. <\/p>\n\n\n\n<p>The relevant authority may order for further clarification in case it finds an application to be incomplete. If further information or\nclarification is not given within 30 days of demand, the application may get\nrejected. The license issued shall be valid\nfor three years from the date of issuance unless it is rejected or suspended by\nthe authority.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documentation_for_an_application\"><\/span>Documentation for an\napplication<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following is the list of documents required to be annexed with an\napplication:<\/p>\n\n\n\n<ul><li>Copy of Certificate of Incorporation<\/li><li>Copy of <strong><a href=\"https:\/\/en.wikipedia.org\/wiki\/Memorandum_of_association\"><em>Memorandum of Association<\/em><\/a><\/strong> &amp; Articles of Association<\/li><li>Copy of PAN of the company<\/li><li>Details of directors and their qualification<\/li><li>The CV of Principal Officer along with his qualification<\/li><li>Bank draft of INR 10,000 drawn in the favor of IRDAI<\/li><li>An affidavit certifying that no director or principal officer has indulged in any fraudulent activity<\/li><li>Details of the proposed online website along with the list of the persons who are maintaining and operating the same<\/li><li>Certificate of Shareholding and Net Worth of the company duly certified CA<\/li><li>Infrastructure details of the aggregator<\/li><li>Hierarchy chart with complete details of the functions and responsibilities of every department<\/li><li>Audited reports and financial statements for the preceding three years<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Renewal_of_License\"><\/span><strong>Renewal of License<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The\naggregator can apply for the renewal of the license on its expiry after 3 years\nin the following way:<\/p>\n\n\n\n<ul><li>Apply in Form F of\nSchedule II of IRDAI\n(Insurance Web Aggregators) Regulations, 2017<\/li><\/ul>\n\n\n\n<ul><li>&nbsp;With the same documents as\nattached with the original application<\/li><li>Such an application\nshall be made 30 days before the date of the expiry of the license<\/li><li>The renewal\nfee of INR 25,000\/- plus applicable taxes, has to be made<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Who is authorized to obtain a license of web insurance aggregator as per the IRDAI (Web Insurance Aggregator) Regulations, 2017?<\/p>\n\n\n\n<p>The following can obtain a certificate of registration of\nWeb Aggregator:<\/p>\n\n\n\n<ul><li>The company incorporated under the Companies Act,2013\/1956<\/li><li>LLP registered under the LLP Act, 2008.<\/li><li>No applicant who is registered as an Insurance agent, corporate\nagent, or any other Insurance intermediary is allowed to obtain a license.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_documents_required_to_be_annexed_in_Form_F_for_the_renewal_of_the_license\"><\/span>What are the documents required to be annexed in Form F for the renewal of the license?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following documents are annexed with a renewal application:<\/p>\n\n\n\n<ul><li>Copy of COI with changes, if any<\/li><li>Copy of MOA &amp; AOA with changes, if any <\/li><li>Director&#8217;s details, CV of the principal officer and their\nqualification.<\/li><li>An affidavit certifying no director has indulged in any fraudulent\nactivities.<\/li><li>Details of any changes made on online websites.<\/li><li>Complete details &amp; the list of the person responsible for the\nmaintenance &amp; operation of the website.<\/li><li>Certification of&nbsp; shareholding\n&amp; net worth of the company by CA <\/li><li>Business plans for the next three years.<\/li><li>Infrastructure details along with any changes.<\/li><li>Duties &amp; responsibilities of organizational <\/li><li>Financial statements for the previous three years<\/li><\/ul>\n\n\n\n<p><h2><span class=\"ez-toc-section\" id=\"Explain_in_brief_the_functions_activities_of_web_aggregators\"><\/span>Explain in brief the functions &amp; activities of web aggregators?<span class=\"ez-toc-section-end\"><\/span><\/h2><\/p>\n\n\n\n<p>IRDAI has defined and given the structure to some of the important\nactivities of Web Aggregator as\nfollows:<\/p>\n\n\n\n<ul><li>Display of insurance products<\/li><li>Facilities for comparison in terms of price<\/li><li>Manner &amp; process of the sale of insurance products<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>A web Aggregator is an online intermediary that maintains a website for rendering the details of insurance products and policies. The website maintained by the web aggregator is useful for comparison of different products and services given by various insurers. These websites provide an interface for the following services: Price comparison Comparison of policies provided [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":6305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[545],"tags":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/6294"}],"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=6294"}],"version-history":[{"count":15,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/6294\/revisions"}],"predecessor-version":[{"id":7852,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/6294\/revisions\/7852"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/6305"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=6294"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=6294"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=6294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}