Board Approved Policy
- Every Insurance Web Aggregator must have a Board Approved Policy. The Policy must cater to the mannerisms of soliciting insurance products. Also, the Policy must include all the points of approach that the Insurance Web Aggregator follows, such as:
- Having multiple tie-ups
- Type of products sold
- Grievance Redressal mechanism
- Reporting requirements and other items
- The Board of the Insurance Web Aggregator must also review the Policy at least once in three years.
Professional Indemnity Insurance
Every Insurance Aggregator must take out and maintain a professional indemnity insurance cover throughout the validity of their Certificate of the Registration period. The insurance cover details must be as specified in Form K of Professional Indemnity Insurance of the said regulations. But the Authority can allow a newly registered Insurance Web Aggregator to produce this Policy within six months from the date of issue of Certificate of Registration.
Name change of an Insurance Web Aggregator
An Insurance Aggregator must take the prior approval from the Authority to change its name in the specified manner and period.
Arrangements for Product Distribution
- Insurance Web Aggregators must not make any arrangements with the insurers that are against the interests of policyholders.
- For details pertaining to such arrangements are given in Form L of Arrangements with insurers for distribution of products of Schedule III of IRDAI regulations.
Also Read: Adjusted Gross Revenue
Conflict of Interest
While soliciting and procuring the insurance business, the Web Aggregator must comply with the following:
- The Insurance Web Aggregator having tie-ups with more than one insurer in a particular line of business must display to the prospective customer the list of insurers. The Aggregator has arrangements with these customers to distribute the products and provide them with the details such as:
- Scope of coverage
- Term of Policy
- Premium payable
- Premium terms
- Or any other information which the customer seeks
- The insurance product on-sell must be based on the need analysis of the prospect.
- No Insurance Web Aggregator can promote or push a particular product of a specific company either through its website or through distance marketing approaches.
Maintenance of Books of Account and Records
Every Web Aggregator must prepare the following for every accounting year:
- A Balance Sheet or a statement of affairs at the end of each accounting period
- A profit and loss account for that period
- An Income and Expense statement
- A statement of Cash and Fund flow
- Additional statements on Insurance Web Aggregators business as required by the Authority
The accounting year will be 12 months or less if the business starts after 1st April. The period will commence on 1st April and end on 31st March of the year following. Lastly, the accounts must be maintained on an accrual basis.
The Aggregator must maintain a schedule for the financial statements providing the details of all the incomes received from the following:
- Insurers
- Insurer’s group companies
Also, the Web Aggregator must maintain the details of payments that they receive by the group companies and associates from any insurer.
Disclosures to the Authority
- The Web Aggregator must specify the details pertaining to disclosure to the Authority are given in Form N (Disclosures to the Authority) of Schedule III of these regulations.
- The Insurance Web Aggregator must furnish half-yearly returns to the Authority insurer-wise business separately in respect of life, general and health insurance.
- The Authority, on examination of the returns furnished, can issue such directions as well as advice as it deems necessary to the Web Aggregator. Every Insurance Aggregator must comply with these directions.
Also Read: Know all about the TEC registration procedure in India
Action against an unregistered Insurance Web Aggregator
- No person can function as a Web Aggregator unless the Authority grants him a certificate of registration.
- No Insurer must engage with a person as an Insurance Web Aggregator who is not registered with the Authority.
- Initiation of criminal proceedings against a person who acts as an Insurance Web Aggregator without holding a valid registration will be done against the insurer who engages an unregistered web aggregator. The Authority can also invoke against such a person penal action under the Act or other law for the time being in force.
