Pursuant to provision of Insurance Act, 1938 read with insurance Regulatory and Development Authority of India (Insurance Web Aggregators) Regulation, 2017 amended up to 30th Oct, 2019 any person who want to do business of Insurance Aggregation via Digital Platform are required to take approval first from the Insurance Regulatory and Development Authority of India (IRDAI).
On increasing internet penetration, smart phone users and easy access of internet people are often met with an instant search engine for any related services and knowledge. It is understood by the businessmen of India that the digital presence is most and operation of business digitally and technology driven is need of an hour.
Similarly the regulator also acknowledge the modes of business operation and its variability in market, out of which in early 2013 regulator come up with guidelines for Insurance Web Aggregator business. The business of digital sourcing of insurance activities via digital platform. The regulator recently repeal the 2013 regulation and come up with revised regulatory framework of Insurance Web Aggregator in 2017 latest amended up to 30th Oct, 2019 to license, monitor and govern this business appropriately.
- Authorized Verifier: It is a Person employed by license Insurance Web Aggregator or a Tele-marketer for insurance solicitation and procurement through Telemarketing and Distance Marketing mode. Such person need to take training and passed the examination specified by Authority. Authority refers to IRDAI.
- Distance Marketing: Marketing or sale of insurance products without physical presence at the time of sale and it is done via telephone, Short Messaging Service (SMS), e-mail or internet or web service.
- Lead: It is information pertaining to person who has accessed the website of an Insurance Web Aggregator and has submitted contact information of any kind, for obtaining information or prices or features or benefits of insurance products.
Lead or Lead Generation, both need to manage in proper way as per regulatory requirements termed as “Lead Management System” i.e. LMS refers to software implemented by Insurance Web Aggregator for recording, filtering, validating, grading, distribution, follow up and closure of leads from the enquiries received on the website of the Insurance Web Aggregator.
- Principal Officer means director/partner or Chief Executive Officer who is exclusively responsible for the activities of Insurance Web Aggregator.
- Solicitation is defined as approach of a prospect by an insurer or an intermediary with view to convince the prospect to purchase an Insurance policy.
What is Insurance Web Aggregator?
It is digital platform to generate the lead and its management for securing the business to various Insurer company in India under the valid agreement in between Insurance Web Aggregator and Insurance Company.
Who are eligible to apply for Insurance Web Aggregator License?
Any person like Company or Limited Liability Partnership with minimum Net Owned Fund adequacy of INR 25 Lakh can apply for Insurance Web Aggregator License. Applicant can file application to IRDAI in Form A with non-refundable fees of application.
What are the Registration Fees?
The applicant should first pay non-refundable application Fees of INR 10,000 plus applicable taxes. Besides this there is stamp duty as per state for incorporation of Company or LLP to carry this business, consultancy charges, business plan charges, application fees and system audit fees. It is costly products to get approval from IRDAI but gives ample opportunity to explore the business of insurance product solicitation.
There are 22 registered Insurance Web Aggregator as on 31st Dec, 2020 as per the report published by IRDAI for public inspection. Easy policy Insurance Web Aggregator Private Limited is first around 2014, followed by Policybazaar Insurance Web Aggregator Private Limited around 2015 and recently KDGO Insurance Web Aggregator Private Limited is recently authorized entity in 2019. All the license entity are valid for period of 3 years. Then such entity is required to renew at least 30 days before the expiry of registration at Form F with required attachment of documents at Form G in addition to renewal fees of INR 25,000/- plus applicable taxes.
- Telemarketer is an entity registered with Telecom Regulatory Authority of India.
- Website is set of related web pages served from a single web domain. It is hosted on at least one web server accessible via networks such as Internet or Private Local Area Network through an Internet Address known as a Uniform resource locator. Word website includes a web portal and/or a mobile site.