An insurance web aggregator has to collect, assemble and maintain the details of various insurance products that various insurance companies offer. All the information collected by the web aggregator is uploaded on the online portal so that the consumers who are looking for insurance services could easily access it. Insurance Regulatory and Development Authority of India (IRDAI) administers the functions of the Web Aggregator are administered by the regulations enforced by itself. The provisions of the Companies Act and the Insurance Act govern the concept of the Insurance Web Aggregator.

In India, a company needs to obtain an Insurance Web Aggregator License from IRDAI if it is willing to operate as an Insurance Web Aggregator.

A web aggregator is an intermediary or an insurance company that provides information on insurance provided by many other companies. A web aggregator also provides a comparison of insurance products and also the prices of different insurance products. The web aggregator is a company registered in accordance with the rules of the Companies Act 2013 or the previous company law 1956 and the IRDAI. A web aggregator offer us details about many distinguishable products to various insurers.

The web aggregator concept is developed when end consumers get quotes on the prices of different financial products. The aggregator can either maintain a website or own a website to yield information about the insurance products.

The applicant is an individual, including:

• A business formed pursuant to the Companies Act, 2013 (18 of 2013).
• An LLP, formed under the 2008 Limited Liability Partnership Act.
• Any other individual approved to act as an Insurance Web Aggregator by the Authority;
• In the case of a corporation, the primary aim of the Memorandum of Association is to carry out the business of web-aggregation of insurance products;
• Any process other than the main item, i.e. the online aggregation of insurance policies, shall not include the claimant.
• The principal officer shall have the qualifications requested and pass the insurance web aggregator analysis as defined by the Authority.
• Any other conditions as the Authority may enforce.

• An Insurance Web Aggregator’s net worth should never fall below 100% of the minimum capital requirements.
• The net worth of the Insurance Web Aggregator must be checked every half year, i.e. 31 March and 30 March.
• In the event of non-compliance, the non-compliance report must be submitted within 15 days. After that, within thirty days, a site aggregator needs to introduce a restoration measure;
• If even after thirty days, the web aggregator fails to retain the net value, all business operations must cease;
• After the finalization of the account books, A Practising CA issues a properly accredited net worth certificate.

Any business wishing to act as an Insurance Web Aggregator must have Rs 25 Lakhs of minimum paid-up capital. By issuing equity shares as per the provisions of the Companies Act, 2013, the company may collect this money.

In a Limited Liability Partnership, however, the investment made by the partners must be in cash only.

Moreover, the combined shareholding of foreign investors in the Insurance Web Aggregator does not reach the 49% limit of the equity capital paid-up.

• To display products of insurance to the final customers, an Insurance Web Aggregator Licence is required.
• To maintain the insurance products related website
• To ensure the maintenance of the quality of standards related to insurance products.

IRDAI (Insurance Regulatory and Development Authority of India) is the primary regulatory authority for the Insurance Web Aggregator Licence. The regulations behind Insurance law are the Insurance Act 1938 and the Insurance Regulatory and Development Act 1999. Besides this, the Web Aggregators are provided with rules related to their work by the Insurance Regulatory and Development Authority of India (Insurance Web Aggregators) Regulations, 2017.

• Net worth must not fall below 100% of the capital requirements.
• The applicant needs to acquire a paid-up capital minimum of up to 25 Lakhs.
• As it is a company in accordance with the Companies Act 2013, the capital must be in the form of equity
• In LLP, the capital of partners should be in the form of cash only.
• The shares of the web aggregator which is considered as capital should not be mortgaged one.
• The insurance web aggregator must overview the status of the net worth on a half-yearly basis on 30th September and 31st March annually and report in case of non-compliance.
• The business of aggregator must be stopped if the Insurance Aggregator is not able to maintain the net worth after 30 days.
• There should be annual submission of Net worth Certificate that is to be certified by a Chartered Accountant.

Application for Registration

An Applicant needs to make an application in Form- A for being registered as a web aggregator.

A fee of Rs. 10,000/- and in addition to it tax has to be paid through demand draft payable or electronic transfer to the Insurance Regulatory and Development Authority of India payable at Hyderabad.

The application would not be further moved if payment of the fee is not made.

If the aggregator will also provide telemarketing services, and outsourcing as well, it should be mentioned in the application form.

The applicant is bound to fulfill some specific requirements. The requirements that are needed to be fulfilled are as follows:

1) The applicant has fulfilled the eligibility criteria or not.

2) If any key managerial person is being suffered from any kind of disqualification under the Insurance Act 1938;

3) If any person who is in direct or indirect connection with the applicant has been denied in the past to grant the license.

4) If the applicant has fulfilled the requirements of the capital and net worth.

The authority will check the application for registration of a web aggregator’s license.

The authority can ask for extra documents for the license of the web aggregator.

The authority grants the certificate of registration in Form- E if it feels to them that registration is in the interest of the policyholders. This will grant permission to the applicant to provide service as an insurance web aggregator.

If the applicant fulfills the code of conduct laid down by the authority, the certificate of registration will be issued

In case of the lapse of the certificate or the authority has denied providing the certificate, a new application can be submitted only after one year for the certificate of registration.

If the applicant wants a certificate of registration, he has to fulfill conditions that are as follows:

1) The applicant of the web aggregator can only adjourn insurance.

2) The Web Aggregator shall fulfill all the requirements of the IRDA Act 1999.

3) The applicant should let the authority be aware of any change or false/ misleading detail, for the documents provided previously.

4) Web Aggregators have to take correct steps within 14 days for the redressal of grievances.

5) The code of conduct must be maintained by the Web aggregator.

6) The authority is provided with the authority to appoint another investigative agency to look and check the books and accounts of the web aggregator.

The documents required for the Insurance Web Aggregate License Registration are:

• Copy of COR (Registration Certificate)
• Copies of MOA (Organization Memorandum) and AOA (Organization Documents) in the event of a company
  A copy of the LLP Agreement certified by a working Chartered Accountant;
• Copy of PAN Card
• CV of nominated partners or directors and copies of their certificate of knowledge and certificates
• CV the Chief Executive Officer with copies of his or her experience certificates and qualifications
• Directors, shareholders, KMP, and Chief Executive Officer, are important.
• They are mentally ill.
• They have not been convicted in any of the Criminal Breach of Trust cases, criminal misconduct, cheating, delayed commitment or fraud within the last five years.
• They have not participated in any economic proceedings for the past five years;
• Company directors have no position or position in the insurance company;
• The value of the company’s profits is at least more than INR 25 lakhs.
• The directors or senior management of the applicant company are registered as follows:
  1. Insurance Agents;
  2. Company Agents;
  3. Minority Insurance Agents;
  4. TPAs;
  5. Loss testers or testers;
  6. Insurance Traders
  7. Any other insurance mediator defined by IRDAI regulations
• Pictures of the proposed portal and proof that the company has received domain name registration
• Proof of the address of the place where such a website will be held. Such an office may be a registered company office or other operating office
• List of persons who will be responsible for controlling and submitting information to the portal about insurance products, comparisons, and guidelines
• A copy of a certificate issued by a valid CA stating the sharing pattern and company value
• Copies of audited accounts, balance sheets, and annual reports for the past three financial years.
• The company’s business plan for the next three years.
• Details of the infrastructure including the IT infrastructure proposed by the applicant and available.
• Employee Chart showing individual responsibilities and duties.
• Training and training certificates for Principal Officer and accredited certificates
• Sign-in credentials for an affiliate website, digital, or LMS verification by the IRDAI Information Technology Department.

The validity of the Certificate of Registration that is the license for Insurance Web Aggregator is for three years from the date of the issue.

The following steps has to be followed to renew an Insurance Web Aggregator Licence:

• The renewal application for the Insurance Web Aggregator Licence must be submitted in Form- F of Schedule II prior 30 days of the expiry date of the licence. Before 90 days of the expiry of the licence,the applicant can apply for renewal of licence.
• Documents have to be submitted in Form- G along the application for registration.
• The payment of fee Rs. 25,000 in addition to taxes has to be submitted along the application for renewal of the registration. The payment mode will be electronic or a demand draft in favour of the Insurance Regulatory and Development Body of India, Hyderabad
• If application is submitted after the expiry period mentioned above but prior to the actual expiry of the certificate then Rs. 100/- has to be paid with the application.
• If the applicant made delay in making an application for renewal of registration, the applicant has to send the same. The applicant will be obliged to pay Rs. 750/- if this is within 60 days of the expiry of the certificate of registration
• If the application is received after the expiration of 60 days, it will be considered only after one year. In that one year, the web aggregator can not do any business or adjourn any form of business.
• No Insurance Web Aggregator will be permitted to carry out any other web aggregator’s business without a certificate of registration with validation.
• Prior looking for renewal of a certificate of registration, an Insurance Web Aggregator must make sure that the Principal Officer and the Authorized Verifiers have undergone renewal training.
• Certificate of renewal in Form- H will be provided if the authority considered that the requirements have been fulfilled.

• On your behalf, we will file the application form to get the Insurance Web Aggregator License for your business.
• We track and monitor the status of the application on behalf of the applicant.
• We are very well aware of the value of your time and money.
• We also provide post compliance services for your business of insurance web aggregator.