web aggregator license
Why register for a web aggregator license?
The insurance web aggregator license is required to deal with the insurance products. The web aggregator license is required to maintain the website related to insurance products and also to ensure the standards related to the quality of insurance products.
Web aggregators help their clients to compare different prices of different companies. As these web aggregators have bound many insurance companies and that is why they ask for all the information about the policies and products.
The process begins from the day when we make the onboarding process complete. Firstly, activities are to share the name and prescribed documents with the IRDAI office for approval purposes. As soon as IRDAI approves the same, the person can register the company/LLP with the required capital.
Once the company is registered, the applicant is required to submit the application to the head office for scrutiny and revision purposes.
Benefits of obtaining a web aggregator license
Following are the perks, advantages, and benefits associated with having a web aggregator license. They are, as follows:
- A quick comparison between various products: Web aggregators help in providing a quick comparison between multiple policies at the same time to the customers. On the basis of premium, benefits provided, coverage, and terms & conditions, customers can easily compare different policies.
- Processing is fast: It is easy to buy insurance online as compared to buying the same from an insurance agent. The complete process from looking at different plans, comparing the plans, and selecting the best plan can be done in a minimal time which otherwise takes a lot of time to buy via the offline mode.
- Web aggregators provide convenience: One of the important benefits of insurance web aggregator licenses is online aggregators provide convenience. Customers can easily purchase the insurance policy from anywhere in India. Only an internet connection is required. The customer is required to provide relevant information about himself/herself and then can make the payment online and that is it.
- Payments can be made easily: Making payments through online mode is far better and easier as compared to offline mode. Different payment gateways are available online nowadays, and the payment for the insurance policy can be made in seconds.
- Authentic method to purchase: Many customers think that buying an insurance policy online is not genuine but it is not the case. Insurance policies available online are 100% authentic. Many banks and insurance companies are nowadays using the web aggregator platform to deal with insurance policies.
About web aggregator license service
The main idea behind starting the web aggregator in India was to educate more people about insurance products. Before the introduction of the web aggregator platform, people used to consult the insurance agent for buying insurance policies for which the agents used to charge high commissions.
Therefore IRDAI (Insurance Regulatory Development Authority of India) came up with the idea of initiating a digital and transparent platform to minimize the wrongdoing of agents.
A web aggregator is basically a company incorporated under the companies act, 2013 duly approved by IRDAI. The insurance web aggregator works as an online platform that provides information about insurance products.
Requirements to avail of the web aggregator license
Following are the below requirements that are to be taken care of while registering for a web aggregator license:
- The company applying for a web aggregator license must be registered as a company under the companies act.
- The object of the web aggregator must be mentioned in the MOA.
- Furthermore, the company applying for a web aggregator license shall not be engaged in the business other than mentioned in the object clause of the Memorandum of association (MOA).
- To register as a web insurance aggregator, the applicant company should not be registered or licensed as a corporate agent, insurance agent, micro-insurance agent, and others as may be prescribed.
- For managing the affairs of the company, the company shall appoint a principal officer full-time.
- The principal officer must be qualified or educated as per the prescribed schedule V of the act.
- The principal officer shall fulfil the fit and proper criteria set by the authority.
- The principal officer must comply with the code of conduct of the web aggregator as specified in schedules VI and VII of regulation.
- The authority under this opinion can grant the web aggregator license.
Procedure to obtain the web aggregator license
Following are the procedure one needs to follow to obtain a web aggregator license:
- An applicant forgetting the license for doing the business of web aggregator of insurance product shall apply to the authority in Form A of Schedule I of IRDAI (web aggregator) regulation 2017.
- An application shall be accompanied by a prescribed fee which is ₹10,000/- rupees (Ten thousand rupees). This fee is non-refundable which has to be paid either through electronic transfer funds or via a demand draft drawn in the favour of the Insurance Development and Regulatory Authority.
- In case an applicant wants permission for outsourcing and telemarketing functions, the same has to be mentioned in the application form.
- Necessary documents shall be attached along with the application for the grant of certificate of registration. Such documents are mentioned in Form 3 of Schedule I.
Verification of the application:
- An application that is filed is thoroughly scrutinized and verified.
- If the application is incomplete then the authority may reject the same.
- The applicant would be given 30 days to provide relevant information to the authority.
- If the information is not provided within 30 days of communication, then the authority would ask the applicant to file a fresh application again.
- If the application is complete in all respects, the authority may grant the certificate of registration in Form 3 Schedule I.
- Such certificate of registration granted to the applicant is with the code of conduct which is to be adhered to by the applicant throughout.
Documents required for obtaining a web aggregator license
- Copy of PAN Card – attested by at least two directors of the company.
- Copy of the certificate of incorporation – attested by at least two directors.
- Copy of MOA and AOA.
- Board resolution
- Details of auditor and banker
- Net worth and certificate from the statutory auditor
- Audited/Unaudited financials of the company.
- Business plan for the next three years
- Organizational chart showing functional responsibilities
- User ID and temporary password
- KYC of the directors, partners, and shareholders.
- Other prescribed documents.