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JC - Legal Updates - Old Wine in the New Bottle - Web Aggregator Regulations, 2017

Legal Updates

11 May 2017

Old Wine in the New Bottle - Web Aggregator Regulations, 2017

1)        Introduction:
The Insurance Regulatory and Development Authority of India (“IRDA”) has come out with IRDA (Insurance Web Aggregators) Regulations, 2017 (“New Regulations”). The New Regulations repeals the already existing IRDA (Web Aggregator) Regulations, 2013 (“Old Regulations”).

An insurance web aggregator (“Aggregator”) is a person who by way of its website, display information pertaining to the insurance products of different insurers to market and facilitate sale of such products. Any person who visits the website of the Aggregator and provides details of any kind for obtaining information on insurance products, such details are saved with the Aggregators and provided to the insurers or intermediary. The insurers or intermediary then approaches the customers to sell their products. Persons intending to act as an Aggregator need to comply with the provisions of the New Regulations.
2)        Highlights of the key changes:
We have in the following table captured in brief the key changes made to the Old Regulations.


Sr. No.


Old Regulations

New Regulations



Net Worth

INR 10,00,000

INR 25,00,000

To meet the requirement within 1 year.


Equity held by Foreign Investors (“FI”)


Less than equal to 26% of the paid-up equity capital at any time.

Less than equal to 49% of paid-up equity capital at any time.

This is as per the change in the FDI policy. Specific conditions are provided under Schedule XII of the New Regulations.


Professional Indemnity

Minimum - INR 10,00,000

Maximum - 3 times the remuneration received during the previous year

Minimum - INR 25,00,000

Maximum - INR 100,00,00,000

Maximum indemnity has been provided.


Renewal Fees

INR 10,000

INR 25,000

Low impact.


Grant of registration


If the FI or Indian promoter has exited at any time during the preceding two financial years from the date of application, then the applicant may not be eligible to obtain registration as Insurance web aggregator.

IRDA can exempt the requirement. In future, the exit should be scheduled in accordance with renewal timelines.


Annual Fees

INR 5000


Low impact.


Premium Ceiling in case of life insurance

(for insurers)

Insurers shall not solicit non - single premium policies whose premium is exceeding INR 50,000.

Single premium policies shall not be solicited for a premium exceeding INR 50,000 over telemarketing

Insurers shall not solicit non- single premium policies whose premium is exceeding INR 1,50,000.

Single premium policies shall not be solicited for a premium exceeding INR 1,50,000 over telemarketing mode.

Business friendly.


3)        Conclusion:
The existing players will continue under the New Regulations. The New Regulations retains the provisions in relation to intimation/ obtaining approval of IRDA in case of transfer of shares of any Aggregator. Also the documentation between Aggregator and Insurance companies are almost the same. There are few minor changes in the corporate governance, conflict of interest, intermediary registration provided to group, remuneration to Aggregator etc.