What are the Public Disclosure Requ...
The Insurance Regulatory and Development Authority (IRDA) is the regulator looking after the pr...
In today’s age of digitalization, e-commerce is the gaining the fancy of customers as well as sellers. Even in the insurance industry, the registered player is exploring the online platforms to sell their products. In light of that, Insurance Regulatory and Development Authority of India (IRDA) had issued guidelines relating to insurance e-commerce on 9th March 2017. The main objective of these guidelines is to set standardize rules for conducting insurance e-commerce activities. As per these regulations, anyone willing to sell insurance online is required to set-up a digital platform known as Insurance Self-Network Platform (ISNP) and follows all the regulations specified for it.
As we discussed electronic commerce is emerging as a very effective and cost-efficient way to access new consumer base. Like any other market, e-commerce can be very helpful in penetrating the insurance market. Realizing the same, with a view to mandate development and promote insurance Authority has issued Guidelines on Insurance e-commerce.
Following are the main objectives for the introduction of these guidelines:
Insurance Self-Network Platform refers to an electronic platform set up with a view to conducting insurance e-commerce activity. Such platforms can only operate after getting permission from IRDA.
ISNP can be set up in any of the following forms:
Many very under the misconception that these insurance e-commerce guidelines will pave the way for e-commerce companies like Amazon and Flipkart. But, that is not the case, as per the definition provided in these insurance e-commerce guidelines clearly state that only a person registered or recognized by the Insurance Regulatory And Development Authority of India can apply for ISNP registration.
As per this explanation, any of the following people either selling or servicing insurance products can file for permission for setting up an ISP:
The most important pre-requisite is that the applicant must have an established online portal for conducting insurance e-commerce activities. This is the reason insurance agents are not permitted to set up ISNP but they can use insurer’s ISNP by taking their permission. In such a situation the insurer will be liable to make sure all compliances required under the guidelines are done.
For setting up an Insurance Self-Network Platform to carry on insurance e-commerce activities prior permission from the authorities is required. For ISNP registration following procedure is to be followed:
NOTE: Once the Authority receives the application, it is required to decide the application within 60 days from the date of submission.
Anyone planning to submit an application with the Insurance Regulatory and Development Authority of India for registration as an IS NO is required to deposit a non-refundable registration fee of Rs. 10,000 along with taxes applicable on the same.
The ISNP platform approval will be valid for the period the registration of applicant is valid under IRDA. For further clarification