In today’s digital age, insurance has become more accessible than ever. With the rise of online platforms, people can compare and purchase insurance policies from the comfort of their homes. One such platform that has gained popularity is the web aggregators in insurance. If you're looking to start an online business in this space, obtaining an Insurance Web Aggregator License is crucial. This guide will walk you through everything you need to know about acquiring this license in India.

What is an Insurance Web Aggregator?

An Insurance Web Aggregator is an online platform that collects, organizes, and displays information about various insurance policies from different insurance companies. It allows consumers to compare different policies based on price, coverage, and other factors, helping them make informed decisions.

For example, if you’re looking for a health insurance policy, an insurance web aggregator website will show you a list of available options, making it easier to choose the best one for your needs.

Why Do You Need a License?

In India, the insurance sector is regulated by the Insurance Regulatory and Development Authority of India (IRDAI). To ensure transparency and protect consumers, IRDAI mandates that anyone operating an insurance web aggregator business must have a license.

Without this license, you cannot legally operate such a platform in India. It also assures users that your platform meets certain standards of quality and trustworthiness.

Steps to Obtain an Insurance Web Aggregator License

1. Understand the Eligibility Criteria

Before applying for the license, ensure that you meet the eligibility requirements:

• Company Structure: Your business must be registered as a company under the Companies Act, 2013.
• Capital Requirement: You need a minimum paid-up capital of INR 25 lakh.
• Directors: At least one director must have knowledge and experience in insurance.

2. Prepare the Necessary Documents

You’ll need to gather various documents to submit along with your application. These include:

• Certificate of Incorporation of the company
• Memorandum of Association (MoA) and Articles of Association (AoA)
• Business plan outlining your web aggregator activities
• Details of the directors, shareholders, and key management personnel
• Proof of the paid-up capital

3. Submit the Application

Once you have all the documents ready, you can submit your application to the IRDAI. The application must be submitted in Form A as specified under the IRDAI regulations.

4. Pay the Application Fee

An application fee of INR 10,000 is required. This fee is non-refundable and must be paid via a demand draft in favour of IRDAI.

5. Inspection and Verification

After submitting your application, IRDAI will conduct an inspection of your documents and business premises. This step ensures that your business is genuine and complies with all necessary regulations.

6. License Issuance

If everything is in order, IRDAI will issue the Insurance Web Aggregator License. The license is valid for three years, after which it needs to be renewed.

Read also: Who is an Insurance Broker?

Responsibilities After Obtaining the License

Once you have the license, you need to adhere to several ongoing responsibilities:

• Compliance with Regulations: Ensure that your platform complies with all IRDAI regulations, including displaying accurate and up-to-date information.
• Annual Audits: Conduct annual audits and submit reports to IRDAI to demonstrate compliance.
• User Data Protection: Protect the personal data of users and follow all data protection laws.

Renewal of the License

Your Insurance Web Aggregator License is valid for three years. To renew it:

• Submit a renewal application at least 30 days before the license expiry date.
• Pay a renewal fee of INR 25,000.
• Ensure that your business remains compliant with all IRDAI regulations.

Benefits of Holding an Insurance Web Aggregator License

Holding this license provides several advantages:

• Legal Compliance: Operate your business legally and build trust with users.
• Access to Insurers: Partner with multiple insurance companies to offer a wide range of policies.
• Business Growth: Leverage the growing demand for online insurance comparison platforms to expand your business.

Read also: An Overview of Merchant Banker License

Conclusion

Obtaining an Insurance Web Aggregator License in India is a crucial step for anyone looking to start an online insurance business. It not only ensures that you comply with the law but also helps you build a trustworthy platform that users can rely on. By following the steps outlined in this guide, you can navigate the licensing process with confidence and set up a successful insurance web aggregator business in India.