Insurance Web Aggregator

Registration Requirements for Web Aggregators

Web Aggregators

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.

Who can be an Applicant 

In order to register as an insurance web aggregator following person can file an application with IRDA:

• Any company registered under Companies Act, 2013 or any of its previous versions.
• Any LLP registered under Limited Liability Partnership Act, 2008. However, following person cannot be a partner in applicant LLP:
• Non-resident Entity
• Any LLP registered under foreign laws or
• Any person resident outside India defined under clause (w) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999) (FEMA)
• Anyone else duly recognized by IRDA as an Insurance Web Aggregator

Eligibility criteria for Registration as an Insurance Web Aggregator

• Minimum Capital Requirements

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.

• Minimum Net-Worth Requirement

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 30^th September as well as on 31^st 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.

• Application Fee

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.

• Application for Registration

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.

• The Validity of the Certificate of 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.

Conditions for Registration

There is certain conditions precedent to registration as a web aggregator. While analyzing the application for registration following points are considered by the Authority:

1. The applicant is as per the person defined under regulation 2 (k).
2. The Memorandum of Association in case a company is applicant or LLP agreement in case LLP is the applicant clearly defines the main objects as the activities undertaken by Insurance Web aggregator. And make sure that the applicant is not involved in any other kind of business activity.
3. To make sure that the applicant is not registered as any other form of insurance intermediary as per the relevant regulations issued by the authorities. However, if any of its group entity is involved in any other kind of insurance intermediary business, registration can be granted after making sure that there are no conflicting interests.
4. The applicant must not be in kind of referral arrangements with any registered Insurer.
5. The applicant must have a registered website to undertake web aggregator activities.
6. The appointed Principal Officer must have specified academic qualifications as mentioned in Form C of Schedule I and has undergone the specified training and qualified the examination for the same.
7. Along with the principal Officer, the Authorized Verifier must also have completed the relevant training and passed the specified examinations.
8. All the officers of the applicant organization must qualify the fit and proper criteria specified in Form D of schedule I.
9. The Authority must check if in past one year any application for registration as a web aggregator is either rejected by the Authority itself or voluntarily withdrawn by the applicant.
10. If the registration is granted it must be in favor of the Policyholders.

Also Read: Insurance Web Aggregator Legal Support