In this digital age, intermediaries (IRDA License) come in digital forms too. Do you remember that insurance agent? One who used to come to your home and give you information about insurance policies? Days of such human presence is about to be over. The Insurance web aggregator license has paved the way for that.
This license permits you to become one of the web aggregators of insurance. Instead of dealing with prospects directly, you’re going to create a website. This website will host insurance policies as products that customers can read about, compare and buy whenever they want.
Such tech oriented insurance business of web aggregators in India will open a lot of venues for you:
- People will reach out for the insurance products instead of you reaching out to them.
- While you won’t be allowed to market a particular insurance policy, you’ll be providing information about the policies so that customers can make an informed choice.
- You can establish contact with several insurance companies and earn via commission whenever a customer buys an insurance product.
The need of securing ones future is constant and thus, you’ll be receiving new customers for the insurance policies on a near constant basis. However, this attractive business will remain a dream until you take a step towards getting the Insurance web Aggregator License.
India has seen its fair share of tragedies and thus, people want to choose insurance policies on their own terms. With this license, you can give people a chance to choose.
So, in this article, you’ll know about this IRDA license:
- What is the meaning of the license and who issues it?
- What makes you eligible to obtain the license?
- What is the process of obtaining this license?
- What are the documents you need to obtain it?
What is the meaning of this license and who issues it?
Insurance web aggregator license is a type of IRDA license. It allows you to do the following:
- Setup a website where you can display insurance policies and product.
- Provide complete information about those policies.
- Let customers visit and find about the policies and information.
- Letting the customer compare different attributes of these policies.
- Allowing customers to buy their choice of insurance policy.
As the license is also known as the IRDA license, it’s the Insurance Regulatory Development Authority in India that issues it. However, it can only issue the IRDA web aggregator license to those who are eligible for it.
What makes you eligible to obtain irda license?
Insurance web aggregator is a niche business that requires individual with niche specialities and a niche mindset towards rules and regulations. To ensure that not just anyone files the application, the Insurance Development Regulatory Authority of India (IRDA) has placed following points in the eligibility criteria:
- Business entity required: IRDA doesn’t issue the license on an individual basis. Thus, before you apply for this online insurance license, incorporate your business as a company or LLP.
- Business objective required on information sheet: The information sheet of your business entity that states what business you do should specify your business is to provide insurance web aggregator services.
- No existing registration with the IRDA: You’re not eligible for the web aggregator license if you’re already registered with the IRDA as a TPA, insurance agent, corporate agent, surveyor & loss assessor, micro finance agent or a micro finance agent.
- Reference from an insurer: IRDA will only trust you the insurance web aggregator license if you have the trust of an insurer. Thus, you should have a referral of an insurer.
- Website is mandatory: Without a website, you don’t have a place to web aggregate the insurance policies. Thus, you don’t deserve the license.
- Trained principal officer: The principal officer of your company should be trained in the ways of insurance web aggregation before you can apply for the license.
- Fit and proper professionals: You should have a statement from court saying that every member of your company fits the “Fit and Proper” criteria.
Only after gaining the eligibility you’ll find the value of the answer to the question how to get IRDA license?
What is the process of obtaining this license?
The road is long from the time you file the application to the time you can get the IRDA license download option. But knowing the following steps will allow you take one at a time to make this road smaller.
- Train your principal officer
- Prepare that principal officer for IRDA license examination
- After clearing the exam, register your business as a company or an LLP.
- Use Form A to file IRDA license application online.
- Upload the required documents so that IRDA can assess you properly.
- Monitor the application as it’s processed by the IRDA.
- If there are discrepancies present in the application or documents, IRDA will notify you to take care of them.
- Fix those mistakes and resubmit the documents and the application.
- If IRDA accepts your application, you’ll be notified to download the license. In case the link you receive isn’t working, you can attempt to download IRDA certificate with URN number.
Whether you get the license or not depends on the documents more as much as it depends on the application. Thus, to make sure that you don’t receive a notification saying your documents are incomplete, you have to get complete knowledge of those documents.
What are the documents you need to obtain IRDA license?
IRDA only accepts your application if you submitted with it, after signing and properly attesting, the following documents:
- Incorporation Certificates of your insurance web aggregator company or LLP
- MOA in case of company/LLP agreement in case of LLP.
- PAN Card of the company or LLP
- Profile of partners in case of company/ Profile of directors in case of LLP.
- Profile of the principal officer containing his IRDA examination certificate and his qualifications.
- Web aggregator portal’s content descriptions
- Web hosting details of the web aggregator portal.
- Details of the website’s content manager
- Shareholding pattern that exists in your company or LLP
- LLP’s or company’s net worth certificate
- Financial documents of the company or LLP of the past 5 years. Provide the details of past year in case you’re a startup.
- IT infrastructure details of the company/LLP
- Backend access of the insurance web aggregator portal.
- Receipt of fee of IRDA license.
If the documents you’ve submitted are in exact right order as above and are self-attested, you’ll obtain the IRDA license transfer.
Only apply for the license if you wish to become insurance web aggregator yourself. Don’t do it on behalf of someone else as IRDA license transfer process is not possible.
Obtaining the license is quite easy if you realize that you’re going to use the same IRDA agent licensing portal. However, the details you’re required to fill and how you’re going to fill them dictate whether you’ll get the license on time or not.
Be ready with the right documents and be correct when filing the application. Meet those two requirements and consult with the third requirement – IRDA consultant so that everything happens on due time.