Insurance Web Aggregator License: A Detailed Guide
- Farheen Mukadam
- Jul 31
- 9 min read
Insurance web aggregators are websites that gather, aggregate, and present information on the insurance plans of various firms. Their role is to serve as a middleman between individuals seeking insurance policies and insurance firms. Data about insurance firms' policies is collected by insurance web aggregators and uploaded to a single platform. Those who are interested in purchasing insurance can use this portal to examine the terms, pricing, and products provided by several insurance firms and select the one that best suits their needs. To operate in the market, these aggregators need to get a license.
Table of Contents
What is an Insurance Web Aggregator?
According to Section 2(n) of the Insurance Act, a web aggregator firm is authorised by the insurance industry's regulatory body and registered under the Companies Act of 1956. This business provides quotes and statistics about insurance plans and goods from various firms. An intermediary that manages and oversees the website and provides customers with pricing comparisons and features of various insurance packages is a web aggregator company. An insurance online aggregator business is registered under the Companies Act of 2013 and is authorised and governed by the IRDA. The website, which provides information on numerous insurance policies and products from different insurance firms, is owned and approved by the IRDA. Customers can compare prices from several insurance firms on a single platform thanks to insurance online aggregators. All of the companies are included in the online aggregator list so that products and quotes may be compared.
Eligibility Criteria for Insurance Web Aggregator License
The applicant must be a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act of 2008 or a business registered under the Companies Act of 2013. However, the LLP's partners have to be citizens of India.
The company's or LLP's Memorandum of Association (MoA) should state that its primary goal is to aggregate insurance goods online.
Other than aggregating insurance websites, the applicant should not be involved in any other business ventures.
Under the rules of the Insurance Regulatory and Development Authority of India (IRDAI), the applicant is not designated or registered as an insurance/microinsurance agent, corporate agent, surveyor and loss assessor, Third Party Administrator (TPA), insurance marketing firm, or any other intermediary.
There should be no referral agreement between the applicant and an insurer.
The fit and proper criteria listed in Form D of the Regulations have been met by the principal officer, promoter, director, partner, shareholder, or key managerial personnel.
The Principal Officer has completed training, passed the IRDAI exam, and possesses the credentials listed in Form C of the Regulations.
The individual (Authorised Verifier) who works for the insurance web aggregator or telemarketer for insurance solicitation and procurement via telemarketing and distance marketing has successfully completed the tests required by IRDAI.
The duties and standards of behaviour outlined in Forms V and W of the Regulations have not been broken by the applicant.
The application for a licence or registration certificate shall not have been denied by the IRDAI, nor should the applicant have withdrawn it for any reason during the previous fiscal year from the application date.
Application Process for Insurance Web Aggregator License
Step 1: Form A of the Regulations is where the applicant should submit their application for the Insurance Web Aggregator Registration Certificate.
Step 2: A non-refundable charge of Rs. 10,000 plus taxes must be sent with the registration application by electronic fund transfer or demand draft (DD) made payable to IRDAI.
Step 3: On the application form, candidates should make clear that they would like permission to use telemarketing and outsourced facilities or functions.
Step 4: For the application to be considered, the applicant must meet all of the following requirements:
The candidate must meet the aforementioned eligibility requirements.
The Insurance Act shouldn't disqualify any of the directors, chief executive, partners, managing director, key management staff, or main officer.
The IRDA has not rejected any prior applications from individuals who are directly or indirectly related to the applicant.
The applicant's promoter, partners, or shareholders should have a stable financial situation.
For the purpose of soliciting insurance, the applicant should have a specific website that may provide an insurance web aggregate.
If the IRDA provides a chance to provide information or clarification, it must be filed within 30 days.
Step 5: The application should fulfil the following capital requirements:
A minimum of Rs. 25 lakh in paid-up capital is required of the applicant.
The capital should be issued and subscribed for in the form of equity shares if the insurance online aggregator is a business formed under the Companies Act of 2013. When it comes to an LLP, a partner's contribution should only be made in cash.
The applicant's capital shares should always be unencumbered and should never be pledged in any way to obtain credit or any other facility.
Step 6: The application should fulfil the following net worth requirements:
The applicant's net worth shouldn't be less than 100% of the required minimum capital.
Every year on September 30 and March 31, the applicant should examine their net worth status. If there is any non-compliance, the applicant has 15 days to notify IRDAI. The applicant must then check the criteria with the IRDAI and restore them within 30 days.
The insurance aggregation firm should be shut down if the applicant is still unable to sustain their net worth after 30 days.
Following the completion of the books of accounts, the applicant must annually submit to the IRDAI the Net Worth Certificate certified by a Chartered Accountant (CA).
Documents for Insurance Web Aggregator License
Form B of the Regulations lists the documentation that the applicant must provide with their application for an Insurance Web Aggregator License. The principal officer must self-attest each document that is presented. The following are these documents:
A copy of the Registrar of Companies' Certificate of Registration or Incorporation.
A copy of the LLP Agreement or the Memorandum of Association and Articles of Association that has been properly certified by a CA.
Resumes of the senior officer with their qualifications and the directors or designated partners of the LLP.
A copy of the company's PAN card.
Copies of the audited accounts and annual report for the preceding three fiscal years, as well as a certificate from a chartered accountant for the company's net worth and shareholding pattern.
The applicant's business plan for the following three years.
Screenshots of the proposed website, documentation of the domain name registration, verification of the website hosting location, and a list of the individuals in charge of or responsible for the contents of the insurance online aggregation website.
The specifics of the infrastructure, particularly the IT infrastructure that is available.
An organisational chart that displays the roles and responsibilities of each function.
Training and Examination Certificates of the authorised verifiers and the principal officer.
Information and statements about the "fit and proper" requirements listed in Form D of the Regulations made by the chief officer, directors, promoters, partners, and senior management staff.
In order to validate the insurance web aggregation website/portal by the IRDAI IT Department in a closed cover, a user ID and a temporary password (with only view permission) are required.
Signed by two LLP directors or authorised partners, this notarised self-certification attests to the following:
A court of competent jurisdiction has not found the company's principal officer or directors to be mentally incompetent, nor have they found them guilty of any major crimes, including theft, fraud, breach of trust, forgery, or aiding and abetting an attempt to commit any of these crimes during the previous five years. The applicants and directors have not engaged in any economic violations within the past three years.
The company must make sure that its net worth does not fall below Rs. 25 lakh during the time of registration for the certificate.
None of the company's directors or employees work for or represent any other organisation involved in insurance.
According to the applicable IRDAI regulations, neither the applicant nor its directors nor the principal officer is registered as corporate agents, insurance agents, micro insurance agents, surveyors, TPAs, insurance brokers, loss assessors, or other insurance intermediaries.
At the time of submitting the registration application for the Insurance Web Aggregator Certificate, the applicant company, its directors, or the principal officer were not related parties of an insurer, corporate agent, insurance broker, TPA, micro-insurance agent, loss assessor, surveyor, or other insurance intermediaries. They will remain so for the duration of the certificate of registration in the future.
Grant Of Insurance Web Aggregator License
In Form E of Schedule I of the Regulations, the IRDAI will provide the applicant a certificate of registration to operate as an Insurance Web Aggregator. If the applicant satisfies the conditions and the IRDAI believes that granting registration to the applicant will benefit the policyholder, the certificate of registration is issued. The following requirements must be met by the applicant in order for the IRDAI to grant the certificate of registration:
The requirements and code of conduct set forth periodically by the IRDAI must be followed by the applicant.
The applicant is limited to soliciting insurance and obtaining numerous insurance policies that are appropriate for their financial situation (specific specifications given in Form Q of the Regulations).
The applicant must abide by the terms of the IRDAI Act of 1999 as well as any rules, guidelines, circulars, and other directives issued under it.
Any significant changes or inaccurate or misleading information in the previously submitted documents should be reported by the applicant to IRDAI.
Within 14 days after receiving the grievance, the web aggregators must take appropriate action to address it.
The Web Aggregator will keep records in the manner that the Authority specifies, including details about policies and authorised verifiers. It will also set up mechanisms that will enable the Authority to regularly access these records and details.
Validity of Insurance Web Aggregator License
An insurance web aggregator's Certificate of Registration is good for three years after it is issued. Within 30 days before the end of the three-year period, the insurance web aggregator licence must be renewed by applying and paying Rs. 25,000.
Steps for Renewal of Insurance Web Aggregator License
The steps listed below must be followed in order to renew an insurance web aggregator licence:
Step 1: Before 30 days after the license expires, the Insurance Web Aggregator License renewal application must be filed using Form-F of Schedule II. Ninety days before the license's expiration, the applicant may submit an application for renewal.
Step 2: Documents must be sent in Form-G along with the registration application.
Step 3: Together with the Rs. 25,000 registration renewal fee (taxes included), the application will be submitted. Either an electronic payment or a demand draft made payable to the Insurance Regulatory and Development Body of India, Hyderabad, is required.
Step 4: A payment of Rs. 100 must be included with the application if it is submitted after the aforementioned time frame has passed but before the certificate's actual expiration date.
Step 5: The applicant must submit an application for registration renewal at the same time if there is a delay. Within sixty days following the certificate of registration's expiration, plus the extra Rs. 750 in costs.
Step 6: Any application that the authority receives after the sixty days have passed will only be taken into consideration a year later. The site aggregator is prohibited from conducting or soliciting any kind of commerce during this one-year period.
Step 7: Before requesting a certificate of registration renewal, an insurance web aggregator must make sure that the Principal Officer and the Authorised Verifiers have completed renewal training. This must be done no earlier than six months after the three-year validity of the Principal Officer's prior fresh or renewal training from an authorised institution.
Step 8: The authority will issue the certificate of renewal in Form H if it determines that the conditions have been satisfied.
Conclusion
In India, insurance web aggregators are websites that provide in-depth details on a range of insurance plans offered by various companies. Customers can evaluate the features and costs of various insurance plans using these platforms. Insurance web aggregators are required to obtain the Insurance Web Aggregator License from IRDA prior to beginning any aggregation activity on their websites.
Frequently Asked Questions
What is the difference between a web aggregator and insurance broker?
While web aggregators manage technology and offer a large selection of policy options through online platforms, insurance brokers typically give a traditional or customised approach and deal with clients one-on-one.
What is the minimum capital requirement for insurance web aggregators?
Insurance web aggregators should have a minimum capital requirement of Rs. 25 lakh.
What is the validity of the insurance web aggregator licence?
Unless it is revoked or suspended, the insurance web aggregator license is good for three years after it is issued.
Is it necessary to have a website prepared for an insurance aggregator?
Indeed, when creating it, the applicant must create a working website. Additionally, the website's audit report—known as the CISA Report—certified by qualified experts for this purpose must be submitted.
What will happen to the application for a Certificate of Registration if the application is incomplete?
If a Certificate of Registration application is not complete, what will happen to it? If an applicant's application is incomplete in any way, does not follow the guidelines on the application form, or does not meet the requirements and/or directives of the authority, it may be denied.
What are the fees for an insurance web aggregator license?
An insurance web aggregator license costs Rs. 10,000 plus taxes, and it is not refundable. Either Electronic Fund Transfer (EFT) or Demand Draft (DD) in favour of IRDAI may be used to make payment.
What are the renewal requirements for an insurance web aggregator license?
Together with the paperwork specified in Form G of the Regulations and a renewal fee of Rs. 25,000 plus taxes, the application for registration renewal must be filed.
What is the timeline to obtain an insurance web aggregator license?
It typically takes the business entity five to six months to receive an insurance online aggregator licence in India after completing all of the IRDAI's regulatory criteria.
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