In IRDA web aggregator License is a permit to start your business as an internet web aggregator.
What is an insurance web aggregator?
Simply put, an collector of insurance policies on the internet is a web aggregator, meaning that it’s a website that contains information about various insurance policies. Insurance seekers come this website, checkout various insurance policies, read their respective features, compare between various insurance policies, and finally, if they wish, buy one straight via this website.
In more blunt terms, an insurance web aggregator is an insurance broker without the human element, and hopefully, the corruption that comes with that element.
In India, the rise of population coupled with the rise of danger has made people desperate to find a way to secure their future. The problem, the tool for that security, the insurance policies, appear too similar to them. People don’t have time to search and look through all of them properly. Thus, they find themselves entrapped by an insurance agent who provides them with limited policy options. With no apparent choice, people tend to choose between these options.
An insurance web aggregator business model that provides a wide variety of insurance policies. By removing the human element, it has provided a simple way for people to browse among many options.
Through this article, we are going to unveil the 7 steps to obtain Insurance web aggregator license in India.
Step 1: Incorporate your business as a company
To grant you the permission to start as a web aggregator, IRDA needs you see you not as an individual, but as a business institution. Right now, the vastness of insurance web aggregator can only be contained within either a public or a private limited company. Thus, you first must incorporate any of those companies with your objective being a business web aggregator for insurance policies.
Step 2: Train yourself in the way of insurance web aggregation
Insurance web aggregator is a business that requires qualifications. Thus, or any other person in your company who you can appoint as a principal officer has to go through mandatory training. There are several IRDA sponsored institutes that provide online training for insurance web aggregation. Complete 50 hours of training at one of these institutions. Upon successful completion of that training, you’ll obtain an training completion certificate. It makes you eligible to apply for the IRDA web aggregator license.
Step 3: Do the same for your Key Personnel of your Management
Insurance web aggregation is not a one man job. You can’t relegate the task of collecting and providing insurance policies via a website to a single person. Thus, in order to properly run the website from the background, and ensuring that the portal performs as it should, you need to train all your KPMs in Insurance web aggregation.
Step 4: File the application form to the IRDA license
All the previous three steps do is make you eligible to apply for the IRDA license. Once you’ve achieved eligibility, you can go ahead and file the online application. Hopefully, with your training, you shouldn’t have any problems understanding the requirements asked in that application form. Once you’ve filled the application form, submit it along with the IRDA web aggregator fees.
Step 5: Attach the documents required with the application form
If you attempt to pay the fees before you’ve uploaded the documents, you’ll fail. Thus, before taking the step 4, take this one. Put together all the required documents for IRDA web aggregator license. They include:
- Incorporation certificate of your company
- Memorandum of Association – company objective sheet – of your company.
- PAN card of your company.
- Details of the principal officer.
- Details of Key Management Personnel that have received IRDA training.
- Details of the website
- Details of the content manager responsible for uploading the content about insurance policies
- net worth certificate and shareholding pattern of the company
- Audited financial statements of the last five years (or last year if you’re a new insurance web aggregator)
- Details of the IT infrastructure of your company
- Organizational chart showing the hierarchy of your company.
- Access of insurance web aggregator website,.
Step 6: Monitor the status of your IRDA application
Keep a close watch on your application’s status once you’ve submitted it to the IRDA. If there are any issues with it, you’ll get the appropriate notifications. Be ready to deal with them, because that is going to be common. In case you need help, you can get in touch with IRDA consultants that can assist you.
Step 7: Obtain the Insurance web aggregator license
Once the IRDA accepts your application, it will email the IRDA certificate for web aggregator to you. The certificate will contain a unique IRDA number, note it somewhere. It would assist you in future.
Here are the 7 steps to obtain IRDA web aggregator license in India. Follow all of them is you want to become an insurance web aggregator in India.