Ever since the IRDA opened its doors for the newcomers, becoming an insurance web aggregator has become the goal for many. It is not the ease of this enterprise but the prospect of online customers attracting modern entrepreneurs towards this enterprise. However, similar to all shoes aren’t for everyone, becoming an aggregator of insurance policies isn’t suitable for all entrepreneurs.
But that doesn’t mean you shouldn’t try. The Insurance Regulatory and Development Authority of India was kind enough to provide eligibility criteria for this certificate. Therefore, all you need is to adhere to it to become worthy of becoming a web aggregator for insurance policies.
But what are those eligibility points?
Let us discuss.
Eligibility points to obtain the Insurance Web Aggregator license
Every point we mention here is the holy grail of starting your own web aggregator business. So, therefore, make sure that you take your time reading them:
Start a Company before getting the license
The COR (Certificate of Registration) that IRDA grants are only for a business entity. Thus, you can only proceed with application filing if you have first incorporated a private limited company registration or an LLP. Because of that requirement, start a company before you begin selling insurance policies online.
Mention your business objective in the Memorandum of Association
The Memorandum of Association is the foundation doc of your company. Thus, do not fail to mention in the document that your objective behind incorporating the company is to render insurance web aggregation services.
Must not be a part of the insurance sector in any shape or form
If you are already a part of the insurance sector, you can’t become a web aggregator, meaning you must be an entity entering the domain for the first time. Thus, you can’t obtain this COR if you happen to be any of the following entities in the past:
- Corporate agent
- Insurance agent
- Third-Party Administrator
- Surveyor and Loss Assessor
- Or an Insurance Marketing Firm
Must not have any referral agreement with an Insurance Company
If you have already signed a referral agreement with an insurance company, it means that you are already a stakeholder of the insurance domain. And thus, IRDA won’t consider you worthy of the license.
Must be well-equipped financially to operate the portal
Starting as a web aggregator is not only about setting up the website and creating business. There are many components involved. To manage all of them properly, you need proper financial infrastructure. Just because you can pay the IRDA web aggregator license fees does not mean that managing the business would be within your ability. Therefore, you must first ensure that your financial back is substantial before applying for this license.
The principal officer of your company must meet all the regulatory requirements
Your Principal Officer is the core officer that watches over the day to day functionality of the web aggregation business. Thus, he must fulfil the following eligibility criteria:
- He must have cleared the IWA examination.
- The court of law must deem him fit and proper to carry out the business operations.
- And he should not have any prior criminal convictions.
You must have a robust business plan
It is not only your certifications and qualifications that interests the IRDA. Your insurance web aggregator business model also matters. Thus, deliberate with financial experts and insurance professionals to create a sturdy business plan before starting.
An authorized verifier refers to a person responsible for providing telemarketing services to an insurance web aggregator. Their responsibility is to reach out to prospects to solicit insurance policies.
Thus, according to the IRDA rules, these authorized verifiers must have the required qualifications.
Also Read: Steps to Convert a Sole Proprietorship to a Pvt Ltd
Conclusion
To become worthy of getting the license to provide insurance comparison services online, you must follow the eligibility criteria to the tee.
Not heeding to these points won’t only reduce your chances of obtaining the registration but also smear your image in front of the Authority.
Therefore, always be mindful of the eligibility points when applying for any license in India.