Overview of Insurance Web Aggregator Companies
A web aggregator company is defined in Section 2 (n) if the insurance act, 1938 as a company registered through Companies Act, 1956 (1 of 1956) and approved by regulating authority of insurance companies. This company gives quotations and stats related to insurance products and policies of different companies.
A web aggregator company acts as an intermediary that maintains and supervises the website and offers price comparison with features of different insurance products to the customer.
An insurance web aggregator company is approved and regulated by IRDA and is registered through the Companies Act, 2013. IRDA is responsible for ownership and approval of the website and gives information related to different insurance policies and products of various insurance companies. The Insurance web aggregators provide customers a single platform to compare quotes from different insurance companies on a single platform.
Eligibility Criteria for Insurance Web Aggregator Registration
- The Company must be incorporated under the Companies Act. The Web Aggregator must comply by all the FDI norms and other regulations set by the authority.
- The main objective of the company must be mentioned as ‘Web Aggregator’ in the MoA or Memorandum of Association. Also, the company mustn’t engage in any other business and only stick to its objective of giving web aggregator services.
- The applicant must not be a licensed or registered insurance agent, loss assessor, corporate agent, micro-insurance agent, surveyor, TPA, or an insurance broker registered under IRDA.
- The company must have a designated principal officers to handle its day to day affairs and his/her educational qualification must be as stated in the Schedule V of the act.
- The designated principal officer should adhere to the code of conduct specified in the Scheduled VI and VII of the Act.
Annual license Fee for Insurance Web Aggregator Registration
- 5000 must be paid as an annual license fee to the authority.
- The fee should be paid before 15 days of finalization of audited account (annual audit).
Capital Requirement for Wen Aggregator License
- For an LLP or a company, the minimum paid-up share capital requirement is Rs. 2500000.
- The paid-up share capital of an applicant company must be issued/subscribed in form of equity share.
- For LLP’s the minimum contribution should be in form of cash only.
- The issued share for the minimum capital requirement will remain unencumbered which means that these shares can’t be pledged as a security to get any credit.
- The net worth of an Insurance web aggregator company must not fall below 100% minimum capital required for registration.
- Status of net worth must be reviewed half-yearly on 30th September and 31st
- A net worth certificate duly certified by a C.A. must be submitted annually to the regulating authority (IRDA).
Procedure to Get Insurance Web Aggregator License
- An application for grant of insurance Web aggregator license and registration needs to be made to IRDA and the format for same should be same as prescribed in Schedule I – Form A of the act.
- Payment for web aggregator license could be made through electronic fund transfer or by demand draft.
- A non-refundable fee of Rs. 10000/- should be paid and the DD should be made in favour of ‘Insurance Regulatory and Developmental Authority’. The DD should be payable in ‘Hyderabad’.
- An application should be made to carry out outsourcing and telemarketing services with the application form.
- If the applicant fulfils all the criteria set by IRDA after inspection of the application and all the relevant document, the authority will grant the applicant insurance web aggregator license.
Validity of License
A license granted by the authority must be renewed after three years which is its period of validity. The authority holds the right to suspend a license in case the company fails to comply with the norms of the IRDA Act.
Getting an Insurance web aggregator license application cleared form IRDA is not an easy task. The application needs to be impeccable and should be minutely examined to avoid any discrepancy that could lead to cancellation of the application by the authority. MUDS help companies in getting the license easily by giving complete end-to-end support to new companies in getting their Insurance web aggregator license and registration.