Insurance web aggregators in India serve as platforms offering comprehensive information on various insurance packages provided by different firms. These platforms enable buyers to assess multiple insurance products, including their features and pricing.

Before initiating any aggregation activities on their websites, insurance web aggregators must obtain the Insurance Web Aggregator License from IRDA.

Objectives of Introducing Insurance Web Aggregators

  1. Consumer Education:

The primary goal was to educate consumers about the array of available insurance products, as opposed to solely relying on insurance agents.

  1. Mitigating Unethical Practices:

Historically, insurance agents often levied substantial commissions. To address this issue, the Insurance Regulatory and Development Authority of India (IRDAI) established a transparent, digital, and tightly regulated platform.

  1. Empowering Consumers:

Insurance Web Aggregators empower customers by facilitating policy comparisons, enabling them to make more informed decisions regarding their insurance requirements.

Eligibility criteria

To obtain an Insurance Web Aggregator Registration Certificate (License), applicants must meet the following eligibility criteria:

  • Business Structure:

Be a company registered under the Companies Act, 2013 or a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008. (Note: LLP partners must be Indian residents.)

  • Business objective:

The applicant's primary business objective, as outlined in the Memorandum of Association (MoA), must be web aggregation of insurance products. They cannot engage in any other business activities.

  • Clean Records:

The applicant cannot be registered as an insurance/microinsurance agent, corporate agent, surveyor and loss assessor, Third Party Administrator (TPA), insurance marketing firm, or any other intermediary under IRDAI regulations.

  • No Referral Arrangements:

This clause in an insurance policy prohibits the policyholder from receiving compensation or other benefits for referring other individuals to the insurance company. In simpler terms, the policyholder cannot act as a salesperson for the insurer and earn commissions by convincing others to buy insurance from the same company.

  • Qualified Personnel:

The Principal Officer must possess the qualifications specified in Form C of the Regulations, undergo IRDAI-mandated training, and pass the prescribed examination.

  • Fit and Proper Criteria:

The Principal Officer, promoters, directors, partners, shareholders, and key managerial personnel must meet the "fit and proper" criteria outlined in Form D of the Regulations. This ensures they are suitable for the role.

  • Telemarketing Staff Qualifications:

Any personnel employed by the insurance web aggregator for telemarketing and distance marketing purposes (Authorized Verifiers) must pass IRDAI-specified examinations.

  • Compliance History:

The applicant cannot have violated the obligations and code of conduct specified in Forms V and W of the Regulations.

  • Previous Application Status:

IRDAI must not have rejected the applicant's previous application for a license/registration certificate within the preceding financial year. Additionally, the applicant cannot have withdrawn their application during that period.

  • Net Worth:

The applicant's net worth must not fall below 100% of the minimum capital requirements.

(Capital and Net Worth Requirements

Minimum Capital:

The applicant must have a minimum paid-up capital of Rs. 25 lakh.

Company Structure:

For companies registered under the Companies Act 2013, the capital should be issued and subscribed in the form of equity shares.

For LLPs, the partner's contribution must be in cash only.

Unencumbered Capital: The shares held as capital cannot be pledged for securing credit or any other facility. They must remain unencumbered at all times.)

  • Net Worth Monitoring:

The applicant must review their net worth status half-yearly on September 30th and March 31st of each year.

  • Non-Compliance Reporting:

If non-compliance is identified, the applicant must report it to IRDAI within 15 days. They must then restore compliance within 30 days and confirm this to IRDAI.

  • Business Suspension:

If the applicant cannot maintain the net worth even after 30 days, their insurance aggregation business will be suspended.

  • Net Worth Certificate:

The applicant must submit a Net Worth Certificate certified by a Chartered Accountant (CA) to IRDAI every year after finalizing the books of accounts.

Documents Required for Insurance Web Aggregator License

The documents to be submitted with the application for the Insurance Web Aggregator License are listed in Form B of the Regulations. All documents must be self-attested by the Principal Officer. Here's a breakdown of the required documents:

  • Company Registration:

Copy of Certificate of Registration or Incorporation issued by the Registrar of Companies.

  • Company Documents:

Copy of Memorandum of Association and Articles of Association or LLP Agreement duly certified by a CA.

  • Company Information:

Copy of PAN Card of the company.

  • Management Team:

CVs of the directors or designated partners of LLP and principal officer with qualification certificates.

  • Website Details:

Snapshots of the proposed website along with proof of domain name registration, confirmation of website hosting location, and a list of individuals responsible for or controlling the insurance web aggregation website content.

  • Financial Statements:

Certificate from a CA for the company's net worth and shareholding pattern, along with copies of the Audited Accounts and Annual Report for the previous three financial years.

  • Business Plan:

The applicant's business plan for the next three years.

  • Infrastructure:

Details of infrastructure, including available IT infrastructure.

  • Organizational Structure:

An organizational chart showing functional responsibilities.

  • Training and Certification:

Training and Examination Certificates of the principal officer and authorized verifiers.

  • Fit and Proper Criteria:

Details and declarations of the principal officer, directors, promoters, partners, and key management personnel relating to the "fit and proper" criteria as specified in Form D of the Regulations.

  • Website Access:

A user ID with a temporary password (with view permission only) for IRDAI's IT Department to verify the insurance web aggregation website/portal in a closed cover.

  • Self-Certification:
  • Notarized Self Certification executed by two directors or designated partners of LLP, certifying the following:
  • The Principal Officer and directors are of sound mind, not minors, and have not been found guilty of criminal misappropriation, cheating, criminal breach of trust, forgery, or abetment of such offenses in the past five years.
  • The directors/applicant have not been involved in any economic offenses in the last three years.
  • No employees/directors of the company hold employment/directorships in or represent any other insurance-related entity.
  • The company will ensure that its net worth remains above Rs. 25 lakhs during the validity period of the registration certificate.
  • The applicant, its directors, or the Principal Officer are not registered as any insurance intermediaries under IRDAI regulations.
  • The applicant and its directors/principal officer are not related parties of any insurance intermediaries at the time of application and will maintain this status throughout the validity period of the certificate.

How to Apply?

Application Form:

Submit the application for the Insurance Web Aggregator Registration Certificate in Form A as prescribed by the Regulations.

Application Fee:

 Include a non-refundable fee of Rs. 10,000 plus taxes. Payment can be made via Demand Draft (DD) in favor of IRDAI or Electronic Fund Transfer (EFT).

Outsourcing and Telemarketing:

Applicants seeking permission for outsourcing and telemarketing functionalities must explicitly mention it in the application form.

Additional Requirements

Eligibility Criteria:

The applicant must fulfill all the eligibility criteria mentioned above.

Disqualification Checks:

Directors, CEOs, partners, managing directors, key management personnel, and the Principal Officer cannot be disqualified under the Insurance Act.

Previous Applications:

IRDAI cannot have previously rejected applications from individuals directly or indirectly related to the applicant.

Financial Standing:

 Promoters, partners, or shareholders of the applicant must demonstrate a sound financial position to support investments.


The applicant must have a designated website capable of facilitating insurance web aggregation for insurance solicitation.

Response to IRDAI:

 If IRDAI requests further information or clarification, the applicant must submit it within 30 days.

The certificate of registration issued by IRDAI is subject to the following conditions:

Regulatory Compliance: The applicant must comply with the provisions of the IRDAI Act, 1999, the Regulations, Circulars, Guidelines, and any other instructions issued by IRDAI.

Solicitation Limits: The applicant can only solicit insurance and procure a number of insurance policies commensurate with their resources (specific details are outlined in Form Q of the Regulations).

Disclosure: The applicant must inform IRDAI of any material changes or misleading or false information provided in previous documents.

Grievance Redressal: The web aggregator must take adequate steps to resolve grievances within 14 days of receipt.

Record Keeping: The web aggregator must maintain records in the format specified by IRDAI, capturing policy-wise and authorized verifier-wise details. They must also implement systems that allow IRDAI regular access to these records.

Grant of Insurance Web Aggregator License

IRDAI's Decision

IRDAI will grant the certificate of registration (Form E of Schedule I of the Regulations) to the applicant if they meet all the requirements and IRDAI believes granting registration is in the policyholder's best interest.

Validity of Insurance Web Aggregator License

The Insurance Web Aggregator License/Registration Certificate issued by IRDAI is valid for three years from the date of issuance. It can be renewed 30 days before the expiry of the registration period.

Late Fees

If the application is not received by IRDAI before 30 days of expiry, an additional fee of Rs. 100 per day will be levied. IRDAI may accept

Renewal of Insurance Web Aggregator License

Renewal Process

The insurance web aggregator must apply for renewal of registration with IRDAI in Form F at least 30 days before the expiry of the existing registration. However, they can also apply for renewal earlier, up to 90 days before expiry, following the process specified by IRDAI.

Renewal Requirements

The application for renewal of registration needs to be submitted along with the documents listed in Form G of the Regulations and a renewal fee of Rs. 25,000 plus taxes.

Compliance Requirement:

Board Approval:

  • IWAs need a plan approved by their board on how they sell insurance. This plan should cover:
    • How they partner with different insurance companies.
    • What types of insurance they offer.
    • How they handle customer complaints.
    • What reports they need to submit.
    • Any other important details about their business.
  • The board must review this plan at least every three years.

Insurance cover:

  • Insurance Web Aggregators must maintain a professional indemnity insurance cover as  mentioned in form K (Professional Indemnity Insurance) of Schedule III of Insurance Web Aggregators Regulations, 2017 throughout their registration period.

Financial Records:

  • Every year, IWAs need to keep detailed financial records, such as:
    • A balance sheet (financial snapshot) at the end of the year.
    • A profit and loss statement (how much money they made or lost).
    • Statements showing income, expenses, and cash flow.
    • Any other financial reports required by the regulator.
  • IWAs must submit these records, along with an auditor's report, to the regulator within 90 days of the year ending. They must also explain any issues the auditor finds in the records.
  • IWAs need to fix any problems the auditor finds within 90 days and tell the regulator.
  • The IWA must keep all financial records, electronic documents, and other important papers at their head office. These documents must be available for inspection by the regulator on weekdays.

Keeping Records:

  • IWAs must keep electronic records of many things for at least 10 years, including:
    • Sales leads generated and sent to insurers.
    • Leads that become actual insurance policies.
    • Client complaints and how they were resolved.
    • Details of insurance products offered for comparison.
    • Commissions earned for different activities.
    • Client KYC (Know Your Customer) information as required by law.
    • Copies of proposals submitted to insurers by clients.
    • A list of clients with details about their policies.
    • Complaint records.
    • Copies of communication with the regulator.
  • However, some records related to legal disputes must be kept until the courts make a final decision.

Disclosing Information:

  • IWAs need to submit reports to the regulator twice a year detailing the business they place with each insurer.
  • They must also disclose any changes to their registration details, client base, or legal issues within a specific timeframe.
  • Any significant changes to the IWA's structure, like a change in directors, require prior approval from the regulator.
  • IWAs also need to report specific events within three days of occurrence, such as opening/closing branches or property acquisitions.

Following the Rules:

  • Each year, the IWA's head honcho (Principal Officer) must confirm to the regulator that the IWA followed all the rules during the previous year.

Security and Audits:

  • IWA websites, data centres, and lead management systems must follow established data security standards in India.
  • All data transmissions, including leads sent to insurers, must be encrypted using secure technologies.
  • The IWA's information systems must be audited annually by a certified Information Security Auditing organization. A copy of the audit report needs to be submitted to the regulator and partnered insurers.

Annual Compliance Report:

Finally, IWAs must obtain a certificate from a qualified auditor confirming their compliance with all IRDAI regulations. This certificate needs to be submitted along with their annual report.

Article by Shashwat Tripathi

an Legal Intern at Corpzo