Insurance Web Aggregators are the companies that give the best idea about which insurance policy will be suitable for which individual. They are online platforms that work as per the rules and regulations mentioned under the Insurance Act of 1938 and the Insurance and Regulatory Authority of India Rule of 2017. They are the companies that need to work after obtaining permission in the form of an Insurance Web Aggregator License. There are a lot of benefits of an Insurance Web Aggregator License for the government as well as the company owner. Such licenses are not only for the benefit of the government and company owner but also for the general public, who will take policies with the help of Insurance Web Aggregators. The present blog will discuss the various benefits of an Insurance Web Aggregator License in detail.
What is the Idea Behind Insurance Web Aggregators?
These Insurance Web Aggregator companies got started with the basic idea of providing the true and correct information with respect to the insurance policies to the one who wants to take an insurance policy. At the current time, there are thousands of policies available in the market, which confuses individuals who want to obtain insurance policies. That is where these Insurance Web Aggregators came into action and helped such individuals choose the best policy among the policies available in the market. The sole idea behind these companies is to provide the best and the true comparison between the different available insurance policies so that it becomes easy for individuals to choose among them. The above-mentioned things also count as some of the key benefits of an Insurance Web Aggregator License with respect to an individual who wants to take an insurance policy.
Governing Laws of Insurance Web Aggregators
These companies of Insurance Web Aggregators are mainly governed by two laws that provide several benefits of an Insurance Web Aggregator License. These two laws include the following:
Insurance Act of 1938
This law of 1938, which is known as the Insurance Act, is one of the governing laws of the Insurance Web Aggregators. It has a total of 123 sections, five parts and eight schedules. Some of the sections and schedules have been omitted as well. This is the act that mandates take license to all the Insurance Web Aggregators. They cannot work without obtaining this license from the competent authorities.
Insurance and Regulatory Authority of India Rule, 2017
Insurance and Regulatory Authority of India Rules that came into force in 2017 are the rules that prescribed the procedures as well as other requirements of the Insurance Web Aggregator License. In the main act of 1938, it has been prescribed that it is mandatory to obtain an Insurance Web Aggregator License to work as an Insurance Web Aggregator; on the other hand, in the rules of 2017, it has been prescribed how to obtain the license.
Key Benefits of an Insurance Web Aggregator License
There are many benefits of an Insurance Web Aggregator License with respect to the government, company owners and the general consumers. Some of the key benefits of three of them are given below:
Concerning Government
- Maintenance of law and order
- Providing a license gives revenue to the government
- Ensures that business is running lawfully
- Can keep an eye on the business easily
- Have complete knowledge regarding the business and the business activities
- Secures the consumers from fraud and misleading information
- Helps in time-to-time inspection of the business activities of the Insurance Web Aggregators
- Having authority and control over the business and its activities
Concerning Company Owners
- Compliance with the law and order
- Can do business freely without fear
- Security against penalty and fines in case a license is not obtained or compliance is not done.
- Helps in proper management of records of the company as well as business
- Helps in the proper oppression of the business
- Build trust among the customers
- Increases reliability as well as credibility of the business
- Helps in the growth as well as development of the business
Concerning Consumers
- Fast and true comparison between the various insurance policies available in the market
- Fast processing, as buying online is an easy and simple process
- Conveniences to purchase policy while sitting anywhere
- Make the payment easy
- Gives authenticity to the policies
- Helps customers to get genuine policies for themselves
- The easy and online method provides convenience while obtaining a license
How to Obtain an Insurance Web Aggregator License?
To obtain the various benefits of an Insurance Web Aggregator License,it is necessary to complete the process and get the license. The very first step is to obtain NOC from the IRDAI to use the words “Insurance Web Aggregator” in the name of the company. This certificate ensures that there are no objections to your business concept. After obtaining the same, one needs to register the entity. Then comes the financial aspect. You’ll need to open a bank account for your company and deposit a fixed amount of Rs. 25 lakhs as paid-up capital in that account. This serves as a financial requirement for your business.
The next critical step is to submit an online application to the IRDAI for the Insurance Web Aggregator License. This application should include all the required documents and information about your business operations. The IRDAI will then review your application. They may have questions or require additional information, which they will communicate to you. It’s crucial to address any queries raised by the IRDAI within 30 days because failure to do so might lead to the rejection of your application.
Ultimately, once the IRDAI is satisfied with your application and all requirements are met, they will issue the Insurance Web Aggregator License, allowing you to legally operate your insurance aggregation business in India. After obtaining this, one can avail of the various benefits of an Insurance Web Aggregator License
Documents Required to Get the Insurance Web Aggregator License
To obtain various benefits of an Insurance Web Aggregator License, it is compulsory to obtain the same license for your company under the Insurance Act of 1938; several important documents are required, mentioned below:
- Copy of the Certificate of Incorporation (CIN), the Memorandum of Association (MOA) and Articles of Association (AOA) of the registered company
- The Permanent Account Number (PAN) of the company, CVs of all directors or partners with their educational qualification certificates
- ID and address documents for the directors or partners,
- Proof of the company’s business address,
- A declaration from the directors or partners about their compliance with the fit and proper criteria
- PAN and Aadhaar Card numbers of all directors or partners with their personal details such as full names, email addresses, nationalities, dates of birth, and contact information.
- Additionally, if you are appointing a principal officer for your company or LLP, you’ll need to provide their declaration of compliance with fit and proper criteria, educational qualifications, insurance-related training certificates, ID and address documents, PAN and Aadhaar Card numbers, and personal details.
- For your Insurance Web Aggregator’s website, you must submit snapshots of the website’s content, proof of domain name registration, confirmation of the hosting website’s address, and a list of responsible individuals for the website and its content.
- Lastly, there’s a crucial self-certification requirement. The principal officer or two directors/partners of the LLP must provide notarised certification confirming that they meet specific criteria, including being of legal age, sound mind, having no criminal background or involvement in economic offences in the last three years, and not being agents of other insurance companies.
Conclusion
There are multiple benefits of an Insurance Web Aggregator License in India for the government, company owners, and consumers alike. For the government, it ensures the maintenance of law and order, generates revenue, and allows for effective oversight of the insurance aggregation industry, safeguarding consumers from fraud and misinformation. Company owners benefit from legal compliance, business freedom, and increased trust and credibility, ultimately promoting business growth and development. As for consumers, the license facilitates fast and accurate comparisons of insurance policies, convenient online purchases, and the assurance of authenticity and genuine policies. With the proper documentation and adherence to regulations, aspiring Insurance Web Aggregators can contribute to a more transparent and consumer-friendly insurance landscape in the country.
