Once in a life, every person takes an insurance policy. Taking an insurance policy is not a big deal, but taking the correct insurance policy matters a lot. Nowadays, the entire world is digitalised, and everything is available online. Similarly, there are a lot of insurance policies that are available, and it’s a really difficult task to choose the correct suitable out of them. This is where Insurance Web Aggregator License helps. It helps individuals and corporate bodies to choose the correct insurance policy. The procedure of an Insurance Web Aggregator License registration is a little bit complicated and requires expert help. It falls under the category of those licenses that are considered the toughest licenses in India. Hence, it is advisable to get expert help for completing the procedure of an Insurance Web Aggregator License registration.
Who is an Insurance Web Aggregator License?
Insurance Web Aggregator mainly have three words: insurance, which means a kind of arrangement between the two parties where one party pays a premium payment to the other party in exchange for protection against any uncertain loss. The second important word is aggregators, which is a website where well-researched information regarding a particular thing has been given. When we combine them, it comes to Insurance Web Aggregator, which is a platform or website where everything information and comparisons between different types of insurance are available. Such websites help an individual choose the best policy. These websites cannot work without having a license; they have to get a license from the Insurance Regulatory Authority of India, and the license is known as the Insurance Web Aggregator License. There is a proper procedure of an Insurance Web Aggregator License; one needs to complete the same to get the above-mentioned license.
Role of an Insurance Web Aggregator License
Every license is given for a purpose, and they have an important role to play; similarly, this license, called the Insurance Web Aggregator License, has some important roles due to which it has been issued. Some of the key roles of IWAL are given below:
- Give permission to function as an Insurance Web Aggregator
- To ensure that the applicant has fulfilled the conditions given under the related laws
- To make sure that issuing an Insurance Web Aggregator License for a particular applicant will be in the interest of the holder of the policy
- It ensures that the applicant will follow the code of conduct and other conditions issued by the IRDAI.
- To ensure providing solutions to any grievance within 14 days of receiving such grievance is necessary.
- To make sure that all the records have been maintained
- The information provided on the website is true and well-researched
Eligibility Criteria to Get Insurance Web Aggregator Registration
Only those applicants eligible to get Insurance Web Aggregator registration after completing the procedure of an Insurance Web Aggregator License who are eligible to get the same as per the related rules and regulations. The eligibility criteria for the same have been given below:
- Applicant must be a registered entity under the company law or can be registered LLP that is well known among the masses as a Limited Liability Partnership Firm under the LLP Act of 2008
- The MOA known as the Memorandum of Association of the entity, must mention that the entity is working as an Insurance Web Aggregator.
- The applicant who is applying for the license of Insurance Web Aggregator must not engage in any other kind of business activity.
- The applicant cannot work as an insurance agent for any other third party
- To do this business, Insurance Regulatory and the applicant must not have a referral from any insurance agency
- The principal officer must have qualifications and training regarding the business
- Must fulfil the conditions given under Form C, Form D, Form V and Form W of the related regulation of the Insurance Web Aggregators
- Applicant must have the minimum paid-up capital for the business of Insurance Web Aggregator. The minimum paid-up capital is Rs. 25 lakhs
What is the Procedure of an Insurance Web Aggregator License?
Follow the steps given below to complete the procedure of an Insurance Web Aggregator License online:
- The very first step is to file an application for a non-objection certificate to use the words “Insurance Web Aggregator” before the Insurance Regulatory and Development Authority of India
- Once the applicant gets that non-objection certificate from the Insurance Regulatory and Development Authority, he or she has to incorporate a company or LLP for its business.
- After the incorporation of the company, appoint a principal officer for it and complete its training.
- Open an account for the entity and make a fixed deposit of Rs. 25 lakhs as paid-up capital in the same account.
- File an online application before the office of IRDA for the Insurance Web Aggregator License and upload all the required documents.
- Now, the department will scrutinise the application, and they will either raise the query or issue the license.
- If the query is raised, then within 30 days, an applicant is supposed to resolve that query because if not resolved within 30 days, there are chances of rejection of the application.
List of Documents Required for Insurance Web Aggregator License
Basis documents required to complete the procedure of an Insurance Web Aggregator License are given below:
- Non-objection certificate of the IRDA to use the words “insurance web aggregator.”
- All relevant documents related to the entity like MOA, AOA, CIN, LLP Deed, etc.
- Documents related to the principal officer appointed for the company
- CISA certified report regarding the website of company will be required
- Bankers’ copy with respect to the bank’s own funds will be required to show the paid-up capital that is deposited in the company’s account
- The entity’s PAN Card number will also be required
- A proper detailed business plan is also required
Benefits of an Insurance Web Aggregator License
Some of the benefits of getting an Insurance Web Aggregator License after completing the procedure of an Insurance Web Aggregator License are mentioned below:
- Provides information about the different insurance policies available
- Compares different insurance so that individuals can choose among them easily
- Gives an idea regarding the better insurance policy
- Helps individuals to choose the best policy of insurance
- Saves time and effort for the individual
- Increases transparency and gives a clear picture
- Provides better pricing for the insurance
- One can get the expert advice
Conclusion
Obtaining an Insurance Web Aggregator License in India is a rigorous process that authorises online platforms to assist individuals and businesses in selecting suitable insurance policies. This license, granted by the Insurance Regulatory and Development Authority of India (IRDAI), mandates adherence to strict eligibility criteria, including entity registration, exclusive focus on insurance aggregation, and a minimum paid-up capital requirement. The application procedure of an Insurance Web Aggregator License entails securing a non-objection certificate, incorporating the entity, appointing a qualified principal officer, and submitting a range of necessary documents. Once approved, the license empowers these platforms to provide valuable information, comparisons, and expert advice on insurance policies, ultimately enhancing transparency, efficiency, and the ability to make informed insurance decisions.
