A web aggregator is a person who provides details about various insurance products that insurance companies offer. Insurance web aggregators allow buyers to choose amongst various insurance products on the basis of their prices and features. However, these web aggregators need to obtain the License for this job prior to starting any kind of aggregation activity.
The main cause to introduce Insurance Web Aggregators in our country India was to instruct the masses and make them cognizant about the different insurance products. Earlier, people used to take suggestions from insurance agents before they buy any insurance policy and for this service, agents used to charge a huge amount of commissions. Therefore, the IRDAI was formed with the idea of introducing a digital, transparent, and highly regulated platform to reduce the malpractice of charging needless commissions by insurance agents. Insurance Web Aggregators also avail the facility of comparing policies so that customers can make more informed decisions according to their needs and the type of insurance they want.
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.
The Insurance Regulatory and Authority of India, 2017.
The Insurance Web Aggregators can’t do promotion of the services and products offered by any specific insurer;
The Insurance Web Aggregators are allowed to sell their products only on the basis of the Analysis Report;
The Insurance Web Aggregator should always display the pricing of every product;
The Insurance Web Aggregator must not display the ranking, ratings, and highlight any product as the best to purchase.
Comparing insurance products.
Making Agreements with insurers. All important details related to insurance products have to be provided.
Display of details related to insurance products on the website.
Even an Insurance Web Aggregator possesses a license, it would not allow a web aggregator to give ranks and compare the products of different insurance providers.
Web aggregators are allowed to show only insurance products.
The adjuration of policies is permitted to web aggregators.
An adjuration is done online where details will be directly given to the customer.
To encourage and spread the online market for insurance products.
To enhance the customer’s experience of purchase.
To help the customers while the process of sale is going on.
To create more transparency and easy to access the insurance sector.
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.
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.
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;
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 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:
3.Minority Insurance Agents;
5.Loss testers or testers;
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 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.
How can we get a No Objection Certificate (NOC)?
NOC is made available to insurance web aggregators and this certificate can be put to use by the Web Aggregator for the registration of the company under ROC (the Registrar of Companies).
The following documents have to be submitted to the authority for the NOC:
• The name that is proposed.
• PAN Card, Address Proof and the name of the proposed directors.
What will happen if the application submitted for a Certificate of Registration is incomplete?
If the application submitted is not complete in all respects or according to the instructions specifically given in the application form, the authority may reject it.
Who is called the Principal Officer (PO)?
A person who acts as a key management executive of Insurance Web Aggregator is known as the Principal Officer. All the activities and responsibilities related to the business of Insurance Web Aggregator is conducted by the Principal Officer.
What’s the difference between insurance aggregator and Insurance broker?
The function of a web aggregator is to provide prospects with several insurance policies in order to choose from as per their needs. Apart from this, the function of insurance broker is to suggest the best insurance product according to their household budget.
Is it mandatory to get a well prepared website for an Insurance Aggregator?
Yes, the Web Aggregator needs to get a website prepared that works well. It is also necessary to give CISA Report (the audit report of the website). It shall be certified by authorized professionals.