A web aggregator is a person who provides details about various insurance
products that insurance companies offer. Insurance web aggregators allow buyers to choose
amongst various insurance products on the basis of their prices and features. However, these web
aggregators need to obtain the License for this job prior to starting any kind of aggregation
The main cause to introduce Insurance Web Aggregators in our country India was to instruct the masses and make them cognizant about the different insurance products. Earlier, people used to take suggestions from insurance agents before they buy any insurance policy and for this service, agents used to charge a huge amount of commissions. Therefore, the IRDAI was formed with the idea of introducing a digital, transparent, and highly regulated platform to reduce the malpractice of charging needless commissions by insurance agents. Insurance Web Aggregators also avail the facility of comparing policies so that customers can make more informed decisions according to their needs and the type of insurance they want.
An insurance web aggregator has to collect, assemble and maintain the details of
various insurance products that various insurance companies offer. All the information collected by the
web aggregator is uploaded on the online portal so that the consumers who are looking for insurance
services could easily access it. Insurance Regulatory and Development Authority of India (IRDAI)
administers the functions of the Web Aggregator are administered by the regulations enforced by itself.
The provisions of the Companies Act and the Insurance Act govern the concept of the Insurance Web
In India, a company needs to obtain an Insurance Web Aggregator License from IRDAI if it is willing to operate as an Insurance Web Aggregator.
The legal provisions that regulate the concept of Insurance Web Aggregator
License in India are given below:
The guidelines for the Insurance Web Aggregators issued by the IRDA are as
The role of Insurance Web Aggregators in India are as follows:
A web aggregator is an intermediary or an insurance company that provides information
on insurance provided by many other companies. A web aggregator also provides a comparison of insurance
products and also the prices of different insurance products. The web aggregator is a company registered
in accordance with the rules of the Companies Act 2013 or the previous company law 1956 and the IRDAI. A
web aggregator offer us details about many distinguishable products to various insurers.
The web aggregator concept is developed when end consumers get quotes on the prices of different financial products. The aggregator can either maintain a website or own a website to yield information about the insurance products.
The applicant is an individual, including:
Any business wishing to act as an Insurance Web Aggregator must have Rs 25 Lakhs of
minimum paid-up capital. By issuing equity shares as per the provisions of the Companies Act, 2013, the
company may collect this money.
In a Limited Liability Partnership, however, the investment made by the partners must be in cash only.
Moreover, the combined shareholding of foreign investors in the Insurance Web Aggregator does not reach the 49% limit of the equity capital paid-up.
IRDAI (Insurance Regulatory and Development Authority of India) is the primary regulatory authority for the Insurance Web Aggregator Licence. The regulations behind Insurance law are the Insurance Act 1938 and the Insurance Regulatory and Development Act 1999. Besides this, the Web Aggregators are provided with rules related to their work by the Insurance Regulatory and Development Authority of India (Insurance Web Aggregators) Regulations, 2017.
Application for Registration
An Applicant needs to make an application in Form- A for being registered as a web aggregator.
A fee of Rs. 10,000/- and in addition to it tax has to be paid through demand draft payable or electronic transfer to the Insurance Regulatory and Development Authority of India payable at Hyderabad.
The application would not be further moved if payment of the fee is not made.
If the aggregator will also provide telemarketing services, and outsourcing as well, it should be mentioned in the application form.
The applicant is bound to fulfill some specific requirements. The requirements that are needed to be fulfilled are as follows:
1) The applicant has fulfilled the eligibility criteria or not.
2) If any key managerial person is being suffered from any kind of disqualification under the Insurance Act 1938;
3) If any person who is in direct or indirect connection with the applicant has been denied in the past to grant the license.
4) If the applicant has fulfilled the requirements of the capital and net worth.
The authority will check the application for registration of a web aggregator’s license.
The authority can ask for extra documents for the license of the web aggregator.
The authority grants the certificate of registration in Form- E if it feels to them
that registration is in the interest of the policyholders. This will grant permission to the applicant
to provide service as an insurance web aggregator.
If the applicant fulfills the code of conduct laid down by the authority, the certificate of registration will be issued
In case of the lapse of the certificate or the authority has denied providing the certificate, a new application can be submitted only after one year for the certificate of registration.
If the applicant wants a certificate of registration, he has to fulfill conditions that are as follows:
1) The applicant of the web aggregator can only adjourn insurance.
2) The Web Aggregator shall fulfill all the requirements of the IRDA Act 1999.
3) The applicant should let the authority be aware of any change or false/ misleading detail, for the documents provided previously.
4) Web Aggregators have to take correct steps within 14 days for the redressal of grievances.
5) The code of conduct must be maintained by the Web aggregator.
6) The authority is provided with the authority to appoint another investigative agency to look and check the books and accounts of the web aggregator.
The documents required for the Insurance Web Aggregate License Registration
The validity of the Certificate of Registration that is the license for Insurance Web Aggregator is for three years from the date of the issue.
The following steps has to be followed to renew an Insurance Web Aggregator
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