It would be easier to understand the differences between general insurance brokers and web aggr...
Web aggregators are insurance intermediary registered with Insurance Regulatory and Development Authority of India (IRDA). Web Aggregators has registered website on which they provide duly compiled information of all the insurance policies provided by different insurance companies.
In order to register as an insurance web aggregator following person can file an application with IRDA:
In order to apply for registration as an insurance web aggregator, the applicant is required to meet the minimum capital requirement of 25 Lakh Rupees.
In case the applicant is a Company registered under Companies Act, 2013 or any previous version of the same, then such capital must be in the form of issued and subscribed capital.
In case the applicant is an LLP registered under Limited Liability Partnership Act, 2008, then the contribution must be in the form of cash only.
Note: The shares of the applicant must not be pledged in any form to secure credit etc.
The Insurance Web aggregator is required to maintain Net Worth of at least 100% of minimum capital requirement i.e. 25 Lakh Rupees at all times.
For this purpose, they are required to review their Net Worth half yearly on 30th September as well as on 31st March every year. Along with these reviews, web aggregators are also required to submit a certificate from a Chartered Accountant to the Authority every year after the finalization of its accounts.
In case of any non- compliance the web aggregators are required to report to the Authority within 15 days. If the web aggregators fail to restore the minimum requirement of net worth within 30 days of reporting it, then it shall stop doing all the insurance-related activities.
While submitting an application for registration as a web aggregator the applicant is required to submit non-refundable application fees of Rs. 10,000/- plus applicable taxes on the same.
Mode of Payment: The above-stated registration fees can be submitted either through electronic funds transfer or through a demand draft drawn in favor of ‘Insurance Regulatory and Development Authority of India’ payable at Hyderabad.
In order to apply for insurance web aggregator license, one can submit a duly filled application along with all the relevant attachments in FORM-A. The format of Form-A is provided in schedule I of the Regulations.
If the applicant also willing to do any outsourcing or Telemarketing functions, then they are required to mention the same in the application for registration.
Once the certificate of registration is issued to the applicant, it remains valid for a period of 3 years from the date f registration and issue of such certificate.
However, it can be canceled or suspended by the authorities at any point before that in case of any non-compliance of the provisions stated in the Regulations.
There is certain conditions precedent to registration as a web aggregator. While analyzing the application for registration following points are considered by the Authority: