Insurance Regulatory and Development Authority (IRDA)

What is the purpose of IRDA

The Insurance Regulatory and Development Authority (IRDA) of India’s primary objective is to ensure it has complied with the Insurance Act.

Insurance Web Aggregator Legal Support

Insurance Web Aggregator is a business entity that maintains a website to provide information about the different insurance policies offered by insurance companies. The web aggregators act as an intermediary between the insurance company and the customer. They collect and compile such information and upload it on their website to help the customer choose the best policy’s per their requirements.

There are various aspects in the Insurance Web Aggregator business for which the insurance Web aggregator requires legal support services such as litigation/ arbitration, advisory and compliance to name a few. Enterslice has a dedicated and experienced team to provide legal support services to the Insurance Web Aggregators.

The Insurance Regulatory and Development Authority of India (Insurance Web Aggregator) Regulations 2017 govern this corporate organisation, registered under the Companies Act of 2013.

Insurance Self Networking (ISNP Certification)

Nowadays, many companies use the Internet to gain a competitive advantage. Through ISNP, IRDA offered a way for insurers or insurance intermediaries to engage in insurance e-commerce activities in India; the insurance industry ultimately decided to encourage e-commerce in the insurance market. Indian insurance services can be purchased online through ISNP. It helps brokers or businesses economically to sell their policies.

The Insurance Self Network Platform is established after the regulatory body's approval. IRDA has created this platform in response to the prevalence of e-commerce across all goods and services. Any insurer or insurance intermediary, such as insurance brokers, corporate agents, or web aggregators, may set up the ISNP.

IRDAI Regulatory Sandbox

New business models, practises, and applications are tested in "sandbox" environments that might not fully adhere to current regulations. The IRDAI Regulatory Sandbox's primary goal is to make it possible to discover whether new product improvements are viable and marketable. The participating companies in the regulatory sandbox provide a safe environment without worrying about specific limitations and sanctions. The sandbox supports the regulator's efforts to develop rules that aid technology advancement, protect consumer interests, and keep up with market changes.

However, identifying the crucial legal prerequisites and other licencing difficulties helps Insurance Tech companies reduce marketing time and risk. Additionally, the sandbox reduces regulatory ambiguity, making attracting investment easier. The IRDAI Regulatory Sandbox on July 26, 2019, following the IRDAI (Regulatory Sandbox) Regulations 2019.

Insurance Web Aggregator License

An Insurance web aggregator is an intermediary or an insurance company that provides information about the insurance offered by different companies through a website or an online portal. It compares insurance products and their prices on such an online platform to help the customers analyse the best product and make an informed decision before buying any insurance product. The Insurance web aggregator is a business entity registered under the Companies Act 2013 or 1956 and regulated by the Insurance Regulatory and Development Authority of India (Insurance Web Aggregator) Regulations 2017 An Insurance web Aggregator must obtain an Insurance Web Aggregator licence from the IRDAI before commencing the business operations, which makes it essential for the Insurance Web Aggregator to be aware of the legalities associated with the Insurance Web Aggregator License.

Insurance Broker Licence

An insurance broker is a licensed professional who works on behalf of clients to identify their insurance needs, assess risks and recommend appropriate insurance products from various insurance companies. In India, various laws must be followed when dealing with insurance brokers. The IRDA Authority Act of 1999 and the IRDAI (Insurance Brokers) Regulations of 2018 are two regulations that apply to insurance brokers. As a result, after obtaining an insurance broker licence, the applicant must abide by the laws and regulations mentioned earlier. Brokers would serve as a liaison between the general public and insurance firms. It is done to increase sales of policies for the insurance provider.

Insurance Marketing Firm Licence

Insurance marketing firm is a new form of business and distribution channel in the insurance sector. This was brought out by one of the insurance committees in 2007. A group of companies were set up to market the products related to insurance and mutual funds sales. Apart from this, the main plan was to sell stocks, pension plans, and financial services.

Insurance marketing firms have collaborations with insurance companies to market their products. To obtain an insurance marketing firm licence the applicant has to be a company/ LLP/ cooperative society/ any other recognised entity. An individual cannot be an insurance marketing firm.

Insurance marketing firms hire Insurance Sales Persons (ISP) who carry out marketing and soliciting activities on behalf of the Insurance Marketing Firm. A financial executive is also appointed by Insurance Marketing Firm known as a Financial Service Executive (FSE). These executives are responsible for soliciting and marketing non-insurance products which are regulated by other authorities.

Insurance Surveyor's and Loss assessor's Licences

Loss assessors and insurance surveyors play essential roles in the insurance industry, particularly in the claims settlement process. They assess and evaluate insurance claims on behalf of policyholders and insurance companies. Generally, the insurance company send an insurance surveyor to estimate the amount of loss when the policyholder purchases insurance for a property. Following this, the insurance company and the policyholder would engage in a contract outlining the conditions of the agreement and the insurance that would be paid to the policyholder.

Internal Control and Organisation SOPs (Standard Operating Procedure)

Governance is required for every organisation to maintain a standard of transparency. Corporate governance can be understood as the relationship between an organisation's shareholders, stakeholders, and employees. The framework should ensure transparency between the stakeholders in the organisation. An organisation's main priority is having a practical corporate governance framework.

The IRDAI issued guidelines related to corporate governance for insurance companies in 2009. For the recruitment, appointment, and remuneration of key management executives such as the Managing Director, CEO, and Whole Time Director, separate guidelines were issued. The corporate governance standards of all organisations have improved due to the changes made to the Organisations Act of 2013. In 2016–17, insurance companies received the updated corporate governance requirements.

The governance process of an insurance company's operations would include internal control and organisational SOPS. All insurance companies, insurance intermediaries, insurance brokerage companies, and corporate agency firms would be subject to internal control and organisational SOPs.

Third-Party Administrator License

A third-party administration, known as a TPA, is an agency that is registered under the Insurance Regulatory and Development Authority of India. The Third-Party Administrator License is required for a company. A third-party administrator helps process insurance claims related to corporate and retail insurance. Apart from this, the Third-Party Administrator also acts as an outsourcing entity of the insurance organisation.

A Third-Party Administrator Licence is necessary to be the policyholder's administrator. Health insurance firms (both life and health insurance) engage third-party administrators to assist the policyholder in resolving insurance claims. Third-party administrators analyse policyholders' medical records and hospital bills to resolve insurance claims. Insurance claims are not subject to approval or denial by Third-Party Administrators.

Corporate Agency Licence

A corporate agent is typically a business representing a specific license or authorisation granted to a corporation or a company to act as an agent or intermediary in certain business activities on behalf of its clients or customers. A corporate agent must comply with specific rules. A corporate agent would need to get a corporate agency licence to work on behalf of the insurance firm. An organisation cannot act as a corporate agent without a corporate agency licence. When a business sells auto insurance on behalf of an insurance company, the business acts as the insurance company's corporate agent.

IRDA Insurance License

The Insurance Regulatory and Development Act of 1999 governs India's insurance industry. Such regulations were implemented to advance India's insurance industry. This law controls how insurance companies are registered in India, grants IRDAI licences to new insurance companies, and safeguards policyholder interests. To obtain an IRDA license, an applicant must undergo a rigorous process that involves meeting specific criteria and complying with various regulatory requirements. In addition, the Policyholders may purchase insurance goods offline or online.