Under Schedule 9, Form-X, of the Insurance Web Aggregator Regulations of 2017, various grounds for Insurance Web Aggregator Licence Cancellation or suspension have been given. This licence, which has been provided to the Insurance Web Aggregators to run their business lawfully, needs renewal from time to time as this is not given for the lifetime of the person. This licence must be renewed 30 days before the expiry date. While getting this licence, one needs to complete all the formalities carefully because even a small mistake on your side can lead to the rejection of your application. Hence, one must take all the precautions while applying for this licence. Even after getting this licence, if it is found that there is a violation of any condition on which this licence has been issued, then it will be cancelled or suspended. The current blog will discuss the points on which there are chances of Insurance Web Aggregator Licence Cancellation or suspension in detail.
Is it Necessary to get an Insurance Web Aggregator Licence?
Yes, it is mandatory to take an Insurance Web Aggregator License. One who wants to do business as an Insurance Web Aggregator must have to obtain this licence. They are not permitted to do this business without the above-mentioned licence. This licence has been given initially for three years, and after that, it needs renewal. Even before the expiry of the licence, the Insurance Web Aggregator License is cancelled or suspended if it is found that they are doing something that is against the governing law. Hence, one must be very aware of the business of Insurance Web Aggregator because there are a lot of formalities in this business, Insurance Web Aggregator License is one of them.
Key Grounds of Insurance Web Aggregator Licence Cancellation
This Insurance Web Aggregator Licence Cancellation is possible in the following two ways:
Insurance Web Aggregator Licence Cancellation With Notice
- If there is a violation of any governing law or any other law
- If there is a violation of the conditions given under Form-V and Form-T of Schedule 8 and Schedule 6, respectively, of the Insurance Web Aggregator Regulation of 2017
- Not able to follow the code of conduct given under Form-W of Schedule 8 of the Insurance Web Aggregator Regulation
- False or wrong information has been given or provided while obtaining an Insurance Web Aggregator License.
- Hide the material facts or not disclose the material facts while obtaining the Insurance Web Aggregator License.
- Where one fails to furnish the information related to the activities of the business of the Insurance Web Aggregator
- Where one furnishes the wrong information or conceals the right information deliberately related to the activities of the business of an Insurance Web Aggregator
- Fails to submit the periodical returns that are compulsory to submit to the competent authorities
- If one is not cooperating with authorities during the time of any enquiry or inspection
- Where one has failed to resolve the grievance of the holder of the policy and is unable to give a reasonable excuse regarding the failure to the authorities
- If it is found that one is involved in rebates or inducement of cash as well as kind
- Fails to pay the requisite fees
- Fails to pay the penalties, if any
- If one is unable to maintain the minimum paid-up capital in the account of the registered entity
- If the principal officer is not appointed as per the rules given under the governing laws
- If the Insurance Web Aggregator is providing false information
- If the Insurance Web Aggregator is misleading the people
- If the Insurance Web Aggregator makes a profit in collaboration with the insurers
- At any stage, if it is found that an Insurance Web Aggregator company is created just to divert the funds of another company
- If the opportunity of being heard has been provided even after that, if the company does not respond, then Insurance Web Aggregator Licence Cancellation will be made.
Insurance Web Aggregator Licence Cancellation Without Notice
- If an Insurance Web Aggregator is found guilty in any fraud case
- If the Insurance Web Aggregator is convicted in any criminal case
- Committed such kind of default that instant action is necessary to take
- Within six months of obtaining an Insurance Web Aggregator License, one failed to commence its business
- Violation of the code of conduct
Violation of the Code of Conduct
If there is a violation of the code of conduct given under schedule 8 in Form-W of the regulation of 2017, then the Insurance Web Aggregator Licence Cancellation will be done. Some of the key conditions of the code of conduct are given below:
- Insurance Web Aggregator deals with the client with utmost integrity and good faith
- They must act with due care and diligence
- Maintain confidentiality and make sure that all the information will be safe and secure
- Avoid conflicts
- Record the complaints of the policyholders and provide them with their solutions as well.
- Communication with the clients must be acknowledged as soon as possible
- Make sure that the grievance of client is resolved by providing the client full satisfaction
- Complaints of the client must be attended to by the key management personal level person
- Insurance Web Aggregator’s website does not have any advertisement of any type
- Make sure that there is no violation of Regulation 31, which talks about the duties of the Insurance Web Aggregator
- Insurance Web Aggregator staff are well trained with respect to the objective of the company and the work they are supposed to do
- Ensure that the staff of the Insurance Web Aggregator’s company are competent enough to work
- The staff of the Insurance Web Aggregator’s company must be aware of the legal requirements of the company
Manner of Cancellation of Insurance Web Aggregator Licence
Insurance Web Aggregator Licence Cancellation or suspension will be done in a proper way. It has a process through which this licence for the Insurance Web Aggregator can be called or suspended. The step-by-step procedure for the cancellation or suspension of the Insurance Web Aggregator License is prescribed below:
- The enquiry officer will serve the notice regarding the cancellation or suspension of the licence to the Insurance Web Aggregators and give them the opportunity to be heard
- Within 15 days of receiving such notice, the Insurance Web Aggregator needs to reply with all the documentary evidence
- After hearing the licence holder inquiry officer will prepare a report based on the facts and evidence submitted before him and submit the same report to the decision-making authority which will decide whether there is a need for Insurance Web Aggregator Licence cancellation or not.
- After considering all the facts and evidence submitted before the decision-making authorities in the form of a report by the inquiry officer they will pass an order which will be visible on their website.
Conclusion
Initially, an Insurance Web Aggregator licence has been given for three years, but if anything against the law is found, it may be cancelled or suspended. There are various grounds for Insurance Web Aggregator Licence cancellation or suspension, out of which some are mentioned above. This licence is a kind of permission given by the government to Insurance Web Aggregators but if it is found that they are doing something that is against the names of the government, they can take back the permission in the form of Insurance Web Aggregator Licence cancellation or suspension. Hence as an expert advice, it is suggested to be fully aware of the terms and conditions which are prohibited under the Insurance Act and regulations so that there is no chance of cancellation or suspension of your licence. Once the licence is cancelled or suspended it’s really difficult to obtain it back. Therefore licence holders must be conscious about the related laws which have been discussed in the current blog. Reading the current write-up will make you aware of the same laws.
