Role of a Web Aggregator

A web aggregator plays the following roles:

• Compares insurance products.
• Agreements are made between web aggregators and insurers. All relevant information related to insurance products has to be provided
• Information related to insurance products is displayed on the website.
• Having an Insurance Web Aggregator License would not permit a web aggregator to provide ranking and comparison of different insurance providers and their products.
• Web aggregators can display only insurance products.
• Solicitation of policies is allowed by web aggregators.
• Solicitation is done through an online portal where information would be directly provided to the customer.

Why Insurance Web Aggregator License is required

• Insurance Web Aggregator License is required so that insurance products can be shown to end customers.
• To maintain the website related to Insurance Products.
• To ensure that quality standards related to insurance products are maintained.

Eligibility criteria for Insurance Web Aggregator License

For granting or renewing the certificate of registration for an Insurance Web Aggregator License the following have to be satisfied.

The applicant must be one of the following:

• 1) A Company formed under the Companies Act 2013; or
• 2) Limited Liability Partnership formed under the LLP Act 2008. The partners should not be a Non-Resident Indian or a person who is resident outside India under the Foreign Exchange Management Act 1999; or
• 3) Any other individual who is recognized as a web aggregator.
  • The MOA and AOA should have web aggregator business as the main objective.
  • The applicant must not be engaged in any other business other than the web aggregation business.
  • The applicant must ensure that he is not registered as an insurance agent, corporate agent, micro-insurance agent, TPA, Surveyor and Loss Assessor, Insurance Marketing Firm, or any other insurance intermediary.
  • The applicant must have a referral agreement with the insurer.
  • The applicant or any of the entities of the applicant would be only granted one certificate for insurance intermediation. If any of the entities are engaged in the activities of insurance intermediation, then the application for a web aggregator’s License would be determined based on the merits of the application.
  • The applicant has a website for insurance web aggregation.
  • The principal officer possesses the necessary qualifications for conducting web aggregation FORM C- Schedule I.
  • The principal officer has undergone the necessary training and passed the examination required by the specified authority.
  • The key management executives( Director/ Shareholders/ Other Principal Officers) have undergone the FIT and PROPER Criteria test in FORM D- Schedule-I
  • Authorized Verifier has gone through the prescribed training and passed the examination conducted by the specified authority.
  • The insurance web aggregator has not violated any obligations which are specified in Form V and Form W.
  • The authority has not withdrawn the certificate of registration of the Insurance Web Aggregator License.

Capital Requirements for Web Aggregators License

The applicant must satisfy the capital requirements for applying for a Brokers License:

• The applicant has to have a minimum paid-up capital of 25 Lakhs.
• Where the Insurance Web Aggregator is a company according to the Companies Act 2013, the capital must be from the equity shares which are issued and subscribed.
• In the case of an LLP, the partners' capital must only be in the form of cash.
• The shares of the web aggregator held as capital must not be pledged in any manner to secure credit.

Net Worth Requirements for Web Aggregators License

• Net worth must not fall below 100% of the capital requirements.
• The insurance web aggregator must review the status of the net worth every half year as of 30 September and 31 March every year and report non-compliance, if any. This must be done to the authority within 15 days and restore such requirements within 30 days after that and confirm compliance to the authority.
• If the Insurance Aggregator cannot maintain the net worth after 30 days, then the business related to the aggregator should be stopped.
• Net worth Certificate has to be submitted every year, which is certified by a Chartered Accountant.

Process / Procedure for Insurance Web Aggregator License Application for Registration

• An Applicant who wants to register as a web aggregator must make an application in Form- A (the application for grant of certificate of registration).
• Along with the application a fee of Rs. 10,000/- plus tax has to be paid through electronic transfer or demand draft payable in favor of the Insurance Regulatory and Development Authority of India payable at Hyderabad.
• The application would not be processed without the payment of the fee.
• If the aggregator is also going to provide outsourcing and telemarketing services, the same has to be mentioned in the same application form.
• The applicant has to fulfill certain requirements. The following are the requirements that need to be fulfilled:

Office Space/ Facilities

• The applicant applying for an Insurance Broker License must also satisfy necessary infrastructure such as adequate office space, equipment, trained manpower, and IT infrastructure to effectively discharge its activities.

• 1) Whether the applicant has fulfilled the eligibility criteria;
• 2) Whether any key managerial person is suffering from any disqualifications under the Insurance Act 1938;
• 3) Whether any individual who is connected directly or indirectly with the applicant has been refused in the past the grant of the license; and
• 4) Whether the applicant fulfills the capital and net worth requirements.The authority would deal with the application for registration as a web aggregator’s License.

The authority can ask to furnish extra documentation for the web aggregator’s License.

Procedure for Insurance Web Aggregator License

• If the authority feels that registration would be in the interest of the policyholders, then the authority would grant the certificate of registration in Form- E. This would be granted for the applicant to function as an insurance web aggregator.
• The certificate of registration would be issued when the applicant satisfies the code of conduct laid down by the authority.
• A new application for the certificate of registration can be made only after one year. This would be applicable in case of lapse of the certificate, or the authority has refused to grant the certificate.
• Certain conditions have to be followed by the applicant for the grant of certificate of registration.

• 1) The applicant can only solicit insurance.
• 2) The Web Aggregator shall comply with the provisions of the IRDA Act 1999.
• 3) The applicant should inform the authority of any material change or false/ misleading information, for previously provided documents.
• 4) Web Aggregators should take adequate steps for redressal of grievances within 14 days.
• 5) The Web aggregator shall maintain the code of conduct.
• 6) The Web aggregator shall solicit and procure a reasonable number of insurance policies commensurate with the resources.
• 7) The authority has the power to appoint another investigative agency to check the books and accounts of the web aggregator.

Validity for Insurance Web Aggregator License

The Certificate of Registration (Insurance Web Aggregator License) is valid for three (03) years from the date of the issue.

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