The Insurance Regulatory Authority of India (IRDAI) issues the Insurance Web Aggregator License. The license is good for three years, and it may be renewed by following the easy renewal process. If the competent government suspends or cancels the web aggregator license, it can be sought for renewal. In this post, we’ll take a look at how to renew your Insurance Web Aggregator License.
What does it mean to have an Insurance Web Aggregator License?
The Insurance Online Aggregator License is necessary for people who work in the insurance web aggregation industry. Insurance web aggregators gather and collate data on insurance plans from a variety of firms. They act as a middleman between insurance firms and customers interested in purchasing insurance coverage.
Insurance Web Aggregator License Renewal Eligibility Criteria
The applicant must guarantee that the following requirements are met to renew the license:
- Regulation 1(i) requires that the petitioner be a natural person.
- The company’s MOA should only have the business of web aggregation of insurance products as its primary goal.
- Apart from the principal goal, the applicant shall not be involved in any other business.
- The applicant cannot be a licensed or registered insurance agent, corporate agent, TPA, surveyor, loss assessor, or another similar profession.
- There must be no referral agreement between the applicant and the insurer.
What is an eligibility criterion for registering as an Insurance Web Aggregator?
Minimal Criteria for Insurance Web Aggregator license applicant shall fulfill the following conditions;
- Applicant company must be formed and registered under the Companies Act of 1958. Company shall comply with all FDI norms applicable to the insurance sector at the time of application submission and shall continue to comply with them throughout the course of their business as a Web Aggregator; company’s Memorandum of Association shall mention its main object as a web aggregator; and applicant shall not be engaged in any other business than that mentioned in the company’s MOA.
- Under the Authority’s essential Regulations, the applicant should not be registered or licenced as an insurance agent, corporate agent, loss assessor, micro-insurance agent, TPA, surveyor, or insurance broker.
- There should be no referral settlements with an insurer on the applicant’s record.
- To oversee the company’s affairs, the board of directors will nominate a full-time main officer.
- The main officer’s educational qualifications must meet the requirements set out in Schedule V of the legislation.
- In addition, the principal officer must meet the Authority’s FIT and PROPER requirements, as stated by the Authority.
- The Principal Officer shall not breach the web aggregator’s responsibility and code of conduct, as set out in this regulation’s schedules VI and VII, respectively; The Authority may, in its judgement, award an Insurance Web Aggregator licence that is in the best interests of policyholders.
What are the Eligibility criteria for the employees of Web Aggregator?
- Web Aggregator Company employees must undergo fifty hours of theoretical and practical training from a government-approved institution.
- After completing training, an employee must pass an exam administered by the National Insurance Academy in Pune, or by any other body.
- Telecallers hired by Web Aggregators to promote the company should be enrolled as Web Aggregators employees and have undergone the IRDA-mandated statutory training.
- Web Aggregators are liable for any acts and omissions committed by their personnel on the job.
What is the cost of Web Aggregator’s annual licence?
Every Web Aggregator is required to pay an annual licence fee of Rs. 5,00O. The price must be paid within 15 days after the completion of the Web Aggregator’s annual audited accounts or by September 30th.
Renewal of an Insurance Web Aggregator License Procedure
The following is the procedure for renewing the Insurance Web Aggregator License:
- The web aggregator firm must submit a Form F application to the Insurance Regulatory Authority at least 30 days before its license expires. The firm can also apply for renewal 90 days before the license expires.
- The application must be accompanied by the required papers. In addition, the application must be accompanied by the necessary renewal charge. The charge must be paid in the form of a bank draught made payable to the IRDAI. It is possible to pay the charge electronically.
- If a firm fails to file a renewal application at least 30 days before the expiration date, the company will be subject to a penalty. In this scenario, the applicant corporation might offer written grounds for application acceptance to the IRDAI. In this instance, the authority has the authority to approve the application even though it has passed the 60-day deadline.
- The regulatory body verifies the application for Insurance Web Aggregator License Renewal to check if the applicant’s license may be renewed.
- The Insurance Web Aggregator must also verify that the company’s principal officer and authorized verifiers have received renewal training within the last six months.
- After the IRDAI has verified the application and determined that the applicant has completed all of the requirements set out in the regulations for web aggregator registration renewal, the authority renews the applicant’s license for another three years.
- It’s worth noting that the IRDAI has the authority to refuse to renew a license if it considers the applicant did not engage in insurance aggregation operations during its prior registration, in whole or in part.
Renewal of the Insurance Web Aggregator License: Documents Required
For license renewal, you’ll need the following documents:
- Self-certified undertaking in the format required by the rules in Annex 1;
- Confirmation of the location where the company’s website is hosted, including locations such as the registered office/operations office if they have changed;
- A list of persons in charge of the digital platform or of the administration of insurance online aggregation operations;
- a business strategy for the next three years at the very least;
- Certificate of renewal of the principal officer’s and authorized verifiers’ insurance training;
- Draft from a bank.
On a website, insurance web aggregators collect, organize, and present information about various firms’ insurance plans. They provide a link between insurance firms (insurers) and those looking to purchase insurance coverage.
The insurance web aggregator is a company that runs a website that offers information on insurance plans offered by various insurance firms in the market. The Insurance Regulatory and Development Authority of India (Insurance Web Aggregators) Regulations, 2017 (“Regulations”) governs their activities.
For individuals who want to apply on their own, the procedure of renewing an Insurance Web Aggregator License might be challenging. As a result, it is recommended that you seek the advice of Insurance Web Aggregation professionals before applying.