Disclaimer

This website is only for informational purposes. Visitors are requested to note that the information is intended to be correct, complete, and up-to-date. Juris Corp does not warrant that the information contained on this website is accurate or complete, and disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.

This website is not intended to be a source of advertising or solicitation. The reader must not consider the information contained herein to be an invitation for a lawyer-client relationship, must not rely on information provided herein and must seek independent advice. Transmission, receipt or use of any information on this website does not constitute or create a lawyer-client relationship. No recipients of content from this website should act or refrain from acting, based upon any or all of the contents of this website.

Furthermore, Juris Corp does not wish to represent anyone desiring representation based solely upon viewing this web site. Finally, the reader is warned that the use of e-mail for confidential or sensitive information is susceptible to inherent risks of lack of confidentiality associated with sending e-mail over the internet.

By clicking on the "I understand and agree" button below, the user acknowledges that:

  • This website is not a mode of advertisement, promotion, personal communication, or solicitation of any sort whatsoever and the user wishes to gain information about us for his/her own reasons;
  • Entering into this website does not establish a lawyer-client relationship.

We are not liable for any consequence of any action taken by the user relying on information provided under this website. In cases where the user has any legal issues, he/she must seek independent legal advice.

.
JC
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

Impact

  1.  

Net Worth

INR 10,00,000

INR 25,00,000

To meet the requirement within 1 year.

  1.  

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.

  1.  

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.

  1.  

Renewal Fees

INR 10,000

INR 25,000

Low impact.

  1.  

Grant of registration

None

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.

  1.  

Annual Fees

INR 5000

Nil

Low impact.

  1.  

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.