Process for Insurance Web Aggregator License/Registration

Narendra Kumar

11 Dec, 2020

The applicant shall comply with the following requirement of condition to obtain Certificate of registration of Insurance Web Aggregator:

1. The applicant shall be a person as defined u/s 2(k).
2. A Company incorporated under Companies Act 2013.
3. MOA of the Applicant company having a business of web aggregation of an insurance policy as its main object.
4. The Applicant company shall not engage in any other business other than the main object.
5. The principal officer posses the qualification as specified in Form-C and has undergone the training and cleared the examination.
6. A limited liability partnership formed under the Limited Liability Partnership Act, 2008 and any other person authorized by the authority can apply for Registration.

To obtain a certificate of registration as a Web Insurance Aggregator, the applicant shall make an application to the Authority in the application Form-A of schedule 1 of Insurance Regulatory and Development Authority of India under Insurance Web Aggregators Regulations 2017.

An applicant seeking the grant of the certificate of registration shall fulfill all the requirements for consideration of application as specified under Regulation 7.

The application shall be accompanied by a non-refundable fee of rupees ten thousand plus applicable taxes paid by way of a demand draft or by a recognized electronic fund.

All matters relevant to carrying out the functions of the Insurance Web Aggregator shall take into account while considering the grant of an application for a registration.

Capital Requirement

An applicant shall have a minimum paid up capital of Rs 25 lakhs. The Capital shall be issued and subscribed in the form of Equity Shares.

In case of LLP, the contribution of Partners shall only be in Cash.

Net-worth requirements

The net-worth of an Applicant Company shall at no time during the period of the certificate of registration period fall below 100% of the minimum capital requirements or contribution.

Net worth certificate duly certified by a Chartered Accountant every year after finalization of books of accounts.

Grant of Certificate of Registration

Once the applicant fulfills the requirements mentioned in these Regulations and the Authority is satisfied that the grant of registration will be in the interest of policyholders, the Authority shall grant the certificate of registration to the applicant to function as an Insurance Web Aggregator.

A CoR issued shall be valid for a period of three years from the date of its issue, unless the same is suspended or canceled pursuant to these Regulations.

Renewal of Certificate of Registration

The Applicant shall submit the application for renewal of registration to the Authority in Form-f within 30 days before the date on which the registration ceases to remain in force along with renewal fee of Rs 25,000 plus applicable taxes.

Without a valid CoR, no Insurance Web Aggregator is allowed to carry out the function.

On literal overview of newly introduced Insurance Regulatory and Development Authority of India (Insurance Web Aggregators) Regulation, 2017, it is observed that procedure and compliance requirement is very low and the technology has played a vital role in business, where the entire concept of business is placed on internet i.e. online platform. The concept is to aggregate all Insurance Companies product is in the single portal which is registered and highly monitored by the authority to offer end user. It helps the India greater initiatives of Digitalization of business which is one of the most important motives of existing government too. The ambitious government and technology-driven existing and new businessman will come together to achieve a new height of business in India. So it’s one pathway for the same.