Document Detail

Title: To all

Reference No.: --

Date: 24/07/2013

IRDA (Web Aggregators) Regulations 2013 Exposure Draft (with suggested chan

In exercise of the powers conferred by section 114A of the Insurance Act, 1938, sections 14 and 26 of the Insurance Regulatory and Development Authority Act, 1999, the Authority, proposes the following regulation:

1) Short title and commencement:

a) This regulation may be called the Insurance Regulatory and Development Authority (Web Aggregators) Regulations, 2013.

b) This regulation shall come into force on the date of their notification in the Official Gazette.

c) This regulation shall apply to all Web Aggregators and Insurers carrying on Insurance business in India

2) Definitions:

a) “Act” means the Insurance Act, 1938 (4 of 1938)

b) “Agreement” for the purpose of this regulation means an agreement entered into between a web aggregator and an Insurer.

c) “Authority” means the Insurance Regulatory and Development Authority established under the provisions of Section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).

d) ‘Distance Marketing’ -for the purpose of this regulation refers to the process of solicitation or sale of insurance products or services where the consumer is physically not present at point of solicitation or sale or the conclusion of the sale, and the process is accomplished through telephone SMS email Internet and web services.

e) “Insurer” – as defined in Section 2 (9) of Insurance Act, 1938.

f) “Lead” – For the purpose of this regulation “lead” means information pertaining to a client who has accessed the website of a web aggregator and has submitted contact information of any kind, for obtaining information on prices or features/benefits of insurance products.

g) “Lead Generation” – for the purpose of this regulation, lead generation is the process of collecting the details of the clients or prospects in any fashion or approaching the clients directly or in distant mode to ascertain their intent to purchase insurance before proceeding with solicitation of insurance products and includes all the activities leading to the solicitation.

h) ‘Lead Management System’ (LMS) for the purpose of this regulation refers to the Software implemented by the entity for recording, filtering, validating, grading, distribution, follow up and closure of leads from the enquiries received on the website of the Web Aggregator with an intention to buy insurance products.

i) ‘Net Worth’ for the purpose of the definition under this regulation means the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation

a) in determining the value of the assets owned by the entity, any amount on account of goodwill or of any other intangible assets shall be disregarded;

and

b) in determining the amount of the liabilities of the entity —

(i) all contingent or prospective liabilities shall be taken into account; and

(ii)any amount on account of any liability related to the share capital of

the entity shall not be taken into account.

j) “Outsourcing”: for the purpose of this regulation outsourcing means activities listed in Schedule IX which can be carried out by the Web Aggregators to the extent is specified in Schedule IX.

k) “Solicitation” – for the purpose of this regulation, solicitation is defined as the approach of a client by an insurer or an intermediary with a view to induce the client to purchase an insurance policy.

l) “Tele caller” – for the purpose of this regulation, a Tele caller is a person engaged by a Telemarketer for the purpose of interacting with clients over distance mode.

m) “Telemarketer” for the purpose of this regulation, Telemarketer an entity registered with Telecom Regulatory Authority of India under Chapter III of The Telecom Commercial Communications Customer Preference Regulations, 2010 (as amended from time to time) to conduct the business of sending commercial communications on behalf of Insurers, Corporate Agents or Web Aggregators.

n) “Web Aggregator” – For the purpose of this regulation, a web aggregator is a Company registered under Companies Act, 1956 (1 of 1956), approved by the Authority under this regulation, which maintains /owns a web site and provides information pertaining to insurance products and price / features comparisons of products of different Insurers and offers leads to an Insurer.

o) All words and expressions used and not defined in this Regulation but defined in the Insurance Act, 1938 (4 of 1938), the Insurance Regulatory and Development Authority Act, 1999 or in any of the Regulations made there under shall have the meanings respectively assigned to them in those Acts or Regulations.

3) Application seeking Grant of License.

a) The application, seeking grant of License as Web Aggregator shall be made by the applicant to the Authority in the application form as shown in Schedule I - Form A of this regulation.

b) The application shall be accompanied by a non-refundable fee of rupees ten thousand paid by way of a bank draft drawn in favour of ‘Insurance Regulatory and Development Authority’ payable at Hyderabad.

c) Applicants seeking permission for Outsourcing and Telemarketing functions / facility shall mention the same specifically in the application Form.

Note: The documents to be submitted along with the application for grant of License as Web Aggregator are mentioned in Schedule III of this regulation.

d) The applicant / application for grant of license as Web Aggregator shall fulfill the all the eligibility conditions as specified under the relevant sections of these regulations and fulfill the conditions mentioned in this regulation.

e) The application for grant of license as Web Aggregator shall be dealt with by the authority as per the applicable provisions and under this regulation.

f) On the applicant fulfilling all the eligibility criteria and requirements mentioned in this regulations; the authority shall grant License to the applicant to function as a Web aggregator as shown in Schedule II Form B of this regulations.

g) Validity of license — A license once issued shall be valid for a period of three years from the date of its issue, unless the same is suspended or cancelled pursuant to this regulation.

h) An application, which is not complete in all respects, shall be liable to be rejected.

i) Provided that, before rejecting any such application, the applicant shall be given an opportunity to complete such formalities within a period of thirty days from the date of receipt of communication from the Authority.

ii) The Authority may require the applicant to furnish such further information or clarification as may be required by it.

iii) In case the requirements are not furnished / filed / submitted within 30 days of the letter from the authority; the application shall be deemed invalid and the applicant shall be required to file a fresh application.

4) Application seeking Renewal of License

a) Renewal of license: Web Aggregators interested in continuing in the businessshall apply with the Authority for renewal of the License NINETY DAYS before expiry of the previous License accompanied by a fee of rupees ten thousand paid by way of a bank draft in favour of ‘Insurance Regulatory and Development Authority’ payable at Hyderabad and containing such information as specified in Form A of Schedule I of this regulation. Applicants seeking permission for Outsourcing and Telemarketing functions / facility shall mention the same specifically in the application Form.

i) Provided however that if the application reaches the Authority later than that period mentioned above in 4 (a) but before THIRTY DAYS of the expiry of the current license, an additional fee of rupees two thousand only shall be payable by the applicant to the Authority.

ii) The Authority shall not consider an application submitted for renewal, which is NOT submitted at least 30 days before the date of expiry of the License, and such renewal application shall follow the new application procedure as specified under section 3 of this regulation.

iii) The application for renewal of license as Web Aggregator shall be dealt with by the authority as per the applicable provisions and under this regulation.

iv) A Web Aggregator, before seeking a renewal of license, shall have completed, at least twenty-five hours of theoretical and practical training, imparted by an institution recognized by the Authority from time to time.

v) The Authority, on being satisfied that the applicant fulfills all the conditions specified for a renewal of the license, shall renew the license as shown in Schedule II Form B for a period of three years and send intimation to that effect to the applicant.

Note: The documents to be submitted along with the renewal application by Web Aggregator are as per Schedule IV of this regulation.

5) Eligibility criteria for License of the Web Aggregator:

a) For the grant of License / Renewal of license of the web aggregator, the applicant shall ensure the fulfillment of the conditions including but not limited to the following:

i) The applicant is a company formed and registered under the Companies Act, 1956 (1 of 1956) and complies with Foreign Direct Investment Norms in force from time to time as applicable for insurance sector at the time of submission of application and continue to comply during the period in which the license (if granted) to act as Web Aggregator is in force.

ii) The Memorandum of Association of the company shall have the business of web aggregation as one of its main objects.

iii) The applicant is not engaged in any other business other than the main objects of the applicant;

iv) The applicant shall not be licensed / registered as an insurance agent, corporate agent, micro-insurance agent, TPA, surveyor, Loss assessor or an Insurance Broker under the relevant Regulations framed by the Authority.

v) The applicant shall not have a referral arrangement with an Insurer.

vi)The applicant shall not be a related party of an insurer, insurance broker, corporate agent, micro-insurance agent, TPA, Surveyor or a loss assessor at the time of application for web aggregator.

b) The applicant company shall employ / designate a Director as Principal Officer to manage the company on full time.

c) The Principal Officer shall possess the qualification as specified in Schedule V.

d) The Principal officer should fulfill the conditions in the FIT and PROPER criteria set by the Authority as notified by the authority.

e) The Principal officer should not have violated the obligations of web aggregator as specified in Schedule VI and the code of conduct as specified in Schedule VII to this regulation and

f) The Authority is of the opinion that the grant of license will be in the interest of policyholders.

6) Employees of the Web Aggregator:

a) The employee of the Web Aggregator should have completed the fifty hours of theoretical and practical training on insurance from an institution recognized by the Authority from time to time and passed an examination, at the end of the period of training mentioned above, conducted by the National Insurance Academy, Pune or any other examining body recognized by the Authority.

b) Telecallers deployed by Web Aggregators to solicit business should be employees on the rolls of the Web aggregator and should have undergone statutory training as prescribed by IRDA.

c) Web Aggregators shall be responsible for all acts of commission and omission of the employees deployed on their behalf.

7) Annual Fees:

a) Every Web Aggregator shall pay annual license fees of Rs.5,000/-.

b) The annual license fee shall be paid before the expiry of 15 days from the finalization of annual audited accounts of the Web Aggregator or till the 30^th of September whichever is earlier.

c) The fees shall be payable by an Account Payee draft in favour of “The Insurance Regulatory and Development Authority” payable at Hyderabad.

8) Capital requirements

a) The applicant shall have a net worth not less than rupees ten lakh as on the date of application and continue to maintain the minimum net worth prescribed during the license period.

b) The Web Aggregator shall submit to the Authority a net worth certificate duly certified by a Chartered Accountant every year after finalisation of books of accounts.

c) No part of the capital of an applicant shall be held by a non-Indian interest beyond the limits in force at any time. For the purposes of this regulation, the calculations of non-Indian interest shall be made in the same manner as specified in Insurance Regulatory And Development Authority (Registration of Indian Insurance Companies) Regulations, 2000 for an insurer.

9) Professional indemnity insurance —

a) Every Web Aggregator shall take out and maintain and continue to maintain a professional indemnity insurance cover throughout the validity of the period of the license granted to them by the Authority.

Provided that the Authority shall in suitable cases allow a newly licensed Web Aggregator to produce such a guarantee within six months from the date of issue of original license.

b) The indemnity cover shall be on a yearly basis for the entire period of license;

c) The insurance cover must indemnify the Web Aggregator against

(i) any error or omission or negligence on his part or on the part of their employees and directors;

(ii) any loss of money or other property for which the insurer is legally liable in consequence of any financial or fraudulent act or omission;

(iii) any loss of documents and costs and expenses incurred in replacing or restoring such documents;

(iv)Dishonest or fraudulent acts or omissions by Web Aggregators’ employees or former employees.

10)Procedure where License / renewal is not granted.

a) The Authority may reject the application made by the applicant to the Authority seeking grant of License / renewal, if it does not satisfy the eligibility criteria laid down under this regulation or if the grant of such License is not found to be in public interest.

b) The decision of the Authority along with the reasons to be recorded in writing shall be communicated to the applicant within a period of fourteen days from the date of the decision.

c) In case of rejection of application for web aggregator, the applicant may appeal against the decision to Chairman of the Authority within thirty days from the date of the Authority’s letter communicating such rejection.

11)Duties and Functions of web Aggregators.

a) The Web Aggregator shall

i) Display Information pertaining to the Insurers who have signed agreement with the Web Aggregators.

b) The Web Aggregators shall not

i) Display any information pertaining to products or services of other Financial institutions / FMCG or any product or service in the website

ii) Display advertising of any sort, either pertaining to any product or service including insurance product or service, other financial products or service / or any other product or service in the Web Aggregators Website.

iii) Operate multiple websites or tie up with other approved / unapproved / unlicensed entities / websites for lead generation / comparison of product etc.

iv) Operate the websites of other Financial / Commercial / marketing or sales or service entities or use other Social Media sites etc. for comparison of products etc.

v) Operate in any other manner for the purpose of transmitting leads to any entity engaged in insurance business except as provided under this regulation.

12)Agreement of Insurer with a Web Aggregator:

(a) An Insurer desirous of obtaining leads from web aggregator shall enter into an “agreement” with the web aggregator approved by the Authority which shall necessarily include details relating to, though not limited to, the following:

i. Time-frame and mode of transmission of leads to be shared

ii. Onus of complying with regulatory and other legal requirements on both the parties to the agreement

iii. Identifying the different data elements to be shared (viz., name of prospect / client (visitor of the web site), contact details etc)

(b) The agreement between an insurer and web aggregator shall be valid for a period of three years from its date.

(c) The web aggregator shall file the agreement to the Authority within fifteen days from the date of entering the agreement.

13) Display of product comparisons on the web site:

(a) Web aggregators shall disclose prominently on the home page, a notice that that the client / visitor’s particulars could be shared with insurers.

(b) Product information displayed by web aggregators shall be authentic and be based solely on information received from insurers.

(c) Web aggregators shall not display ratings, rankings, endorsements or bestsellers of insurance products on their website. The content of the websites of the web aggregators shall be unbiased and factual in nature; they shall desist from commenting on insurers or their products in their editorials or at any other location in their websites.

(d) Products will be categorized as

i. Life:

a. Term Insurance Products

b. Endowment Products

c. Health Insurance products

d. Retirement – Immediate annuities

e. Retirement – Deferred annuities

f. Children’s products

ii. Non Life:

a. Home Insurance

b. Motor Insurance

c. Health Insurance

d. Travel Insurance

e. Personal Accident Insurance

f. Rural Insurance

g. Corporate and Commercial

h. Other classes

(e) Products under a category as mentioned above can be compared.

(f) Basic product features of products such as

i. Eligibility criteria

ii. Plan / Policy Term / Premium term / Min and Max SA / Age / Min & Max Maturity etc. have to be compared.

iii. Inbuilt Benefits / riders can be compared (Additional Riders to be compared separately)

iv. Premiums for different age groups can be compared.

v. Surrender benefits / Loans etc

vi. Benefits such as Survival benefits / Maturity Benefits / Death benefits etc. are to be compared.

vii. Returns – 6 % and 10 % s approved by IRDA to be compared

viii. Any other additional information / special product features relating to the products under comparison can be compared.

(g) Templates can be mutually worked out between the Web Aggregators and Insurers whose products are compared.

(h) Product comparisons that are displayed shall be up to date and reflect a true picture of the products.

(i) Web aggregators shall display product information purely on the basis of the information furnished to them by insurers.

(j) Web Aggregators can use published data for “Additional Information to Customers” based on IRDA Data.

(k) Web Aggregators can integrate their websites with the with insurers website for

i. ONLINE Sale

ii. Registration of Customer data or Proposal Form

iii. Online Underwriting decision

(l) Web aggregators shall not carry any advertisements or sponsored content on their websites.

14)Transmission of leads to be shared:

(a) Web aggregators shall disclose prominently on the home page that the client/visitor’s particulars could be shared with insurers.

(b) Web Aggregator should provide an option to select three insurers to whom the lead can be communicated.

(d) Provided that, if the client evinces interest in buying insurance but does not prefer any Insurer, web aggregator shall not transmit the lead to more than three Insurers in the same class of insurance business.

(f) Web aggregator shall transmit the data of clients to Insurer

i. Not later than five days of visit to the web site.

ii. Reasonably securing the information of clients from unauthorized access and misuse;

iii. With a reasonable level of suitability, reliability and correctness, and;

iv. In compliance with generally accepted I.T. security procedures

(g) Web Aggregator shall use Lead Management Systems (LMS) and the full details of the visitors to the Web Aggregators website and the Leads and preference of the visitor should be recorded

(h) LMS data should be shared with the Insurance companies that have signed agreements with the Web Aggregators and with the Authority.

(i) LMS should ensure Transparency and Accountability.

(j) Web Aggregators should deploy an IT Firm to audit the LMS systems at least once in 6 months.

(k) The Audit Report of the IT Firm should be submitted to IRDA and the Insurers who have signed contract with the Web aggregators.

15)Remuneration.

Remuneration shall be payable to web aggregators by insurers in compliance with the following provisions:

a) A flat fee not exceeding Fifty thousand per year towards each product displayed by the web aggregator in the comparison charts of its web site.

b) Web aggregator will put in place a robust LMS and transmit leads to the insurers as outlined in Section V above. No charges will be payable for leads by the Insurer.

c) The Remuneration made by the Insurer towards a policy procured through to services of the Web Aggregator or lead provided by the web aggregator including the remuneration made towards such a policy to any insurance intermediary deployed by the insurer for procuring the business shall not exceed the limits prescribed in the Sec. 40-A of the Insurance Act.

d) Web Aggregator can engage in Outsourcing functions to provide ‘Insurance Services’ as per Schedule IX of this regulation in respect of policies procured through them. Some of the outsourcing functions are

a. Reminders for Premium Payment

b. Printing and posting of reminders for other services

c. On line collection of premiums through the Insurers website only.

In such instances; the insurer may pay the web aggregators, service charges at rates fixed in the service agreements with the web aggregators.

e) Web Aggregator can use the Telemarketing / Distance Marketing modes as per instructions outlined in Schedule X in this regulations for solicitation of Insurance business.

16) Conduct of business by the Web aggregator.

The Web aggregator shall conduct the business in a fair manner and shall abide by

a) The Obligations of the Web Aggregators as outlined in Schedule VI

b) The Code of conduct of the Web Aggregators as outlined in in Schedule VII.

17)Cancellation or suspension of license with notice —

a) The license of an Web Aggregator may be cancelled or suspended after due notice and after giving him a reasonable opportunity of being heard if he —

i) violates the provisions of the Insurance Act,1938 (4 of 1938), Insurance Regulatory And Development Authority Act, 1999 (41 of 1999) or rules or regulations, made there under;

ii) fails to act in accordance with the Obligations of the Web Aggregators as specified in Schedule VI of this regulation;

iii) fails to adhere to the Code of Conduct specified in Schedule VII of this regulation;

iv) furnishes wrong or false information for obtaining a license; or conceals or fails to disclose material facts in the application submitted for obtaining a license;

v) fails to furnish any information relating to his activities as an insurance Web Aggregator as required by the Authority or furnishes wrong or false information or conceals or fails to disclose material facts to the Authority during the validity of license;

vi) does not submit periodical returns as required by the Authority;

vii) does not co-operate with any inspection or enquiry conducted by the Authority;

viii)fails to resolve the complaints of the policy holders or fails to give a satisfactory reply to the Authority in this behalf;

ix) indulges in rebates or inducements in cash or kind to a client or any of the client’s directors or other employees or any person acting as an introducer;

x) fails to pay the fees or the reimbursement of expenses under this regulation as per section 7 of this regulation;

xi) fails to maintain the capital requirements in accordance with the provisions of section 8 of this regulation ;

xii) if the principal officer does fulfill the conditions mentioned in the regulation

xiii)If the Web Aggregator indulges in sourcing of business by themselves or through call centers by way of misleading calls or spurious calls;

b) In the circumstances where the Authority feels that the establishment of a Web Aggregator is only to divert funds within a group of companies or their associates, it can after due enquiries made by it cancel the license granted to the Web Aggregator.

c) A Web Aggregator whose license is suspended after due notice and after giving him a reasonable opportunity of being heard, shall not solicit any new business from the date of receipt of such Suspension Order till such time the suspension is revoked. However, he shall continue to serve the existing policyholders during the suspension period.

d) If it is established on the examination of the facts, figures, circumstances and other substantial documentary evidence that the provisions of this regulation are violated/breached by the Web Aggregator and the Authority in the interest of policyholders may consider imposing financial penalty instead of cancellation/suspension of license of the Web Aggregator for such violations/breaches.

18)Cancellation or suspension of license without notice — The license of an WebAggregator may be cancelled or suspended without notice, if he —

(a) violates any one or more of the provisions under the obligations of web aggregators as specified in Schedule VI of this regulation;

(b) violates any one or more of the provisions under the code of conduct specified in Schedule VII of this regulation;

(d) commits such defaults, which require immediate action in the opinion of the Authority, provided that the Authority has communicated the reasons for the cancellation in writing;

(e) has not commenced business within six months of being granted a license.

(f) in case the license of a Web Aggregator is suspended without notice, such license shall not be cancelled unless an enquiry has been held in accordance with the procedure specified in this regulation.

(g) a Web Aggregator whose license is suspended without notice shall not solicit any new business from the date of receipt of such Suspension Order till such time the suspension is revoked. However, he shall continue to serve the existing policyholders during the suspension period.

19)Manner of holding enquiry before suspension or cancellation — (1) For the purpose of holding an enquiry under this regulation, the Authority may appoint an enquiry officer;

(a) the enquiry officer shall issue to the Web Aggregator a notice at the registered office or the principal place of business of the Web Aggregator, as the case may be, calling for such information as he considers necessary for the conduct of an enquiry;

(b) the Web Aggregator may, within fifteen days from the date of receipt of such a notice, furnish to the enquiry officer a reply together with copies of documentary or other evidence relied on by him or sought by the enquiry officer;

(c) the enquiry officer shall, give a reasonable opportunity of hearing to the Web Aggregator to enable him to make submissions in support of his reply made

(d) the Web Aggregator may either appear in person or through any person duly authorized by him to present its case;

(e) if it is considered necessary, the enquiry officer may require the Authority to present its case through one of its officers; and

(f) if it is considered necessary, the enquiry officer may call for feedback / information from the insurer or any other related entity during the course of enquiry

(g) the enquiry officer shall, after taking into account all relevant facts and submissions made by the Web Aggregator, submit a report to the Authority within 30 days of the completion of the enquiry proceedings.

20)Procedure to apply afresh to the Authority, in case where the Authority has cancelled or refused the renewal of license

(a) Web Aggregator can apply afresh for license as Web Aggregator in cases where there was a cancellation of License and / or rejection of renewal of license only after a period of twelve months from date of such decision from the Authority. In cases where the High Court or Supreme Court has decided a period beyond one year, the said period shall be taken into consideration by the Authority in considering the application for grant of the fresh license

(b) Application for Web Aggregator license applied afresh by the company whose license was cancelled (or renewal rejected) either due to surrender or disciplinary action shall be accepted on successful completion of due diligence process involving one or more of the following:

i. Gravity of regulatory violations while reviewing grant of fresh license.

ii. LMS model and existing infrastructure setup of Web Aggregator

iii. Persistency of business over the years

iv. Complaints registered against Web Aggregator through various insurance companies / customers

v. Due diligence and track record of existing business.

vi. Other information received with the application prescribed for the said purpose.

vii. any other matter which may be specified from time to time by an order or guideline issued by the Authority

(c) Authority will appoint a committee to examine request application and based on the recommendation of the said committee, the decision to cancel a renewal/license would be taken by Chairman

(d) Reissuance of license on appeal is vested with Chairman IRDA.

21)Maintenance of books of account, records, etc. —

a) Every Web Aggregator shall prepare for every accounting year —

i. a balance sheet or a statement of affairs as at the end of each accounting period;

ii. a profit and loss account for that period;

iii. a statement of cash/fund flow;

iv. Additional statements on Web Aggregators business as may be required by the Authority.

Note: For purposes of this regulation, the accounting year shall be a period of 12 months (or less where a business is started after 1^st April) commencing on the first day of the April of an year and ending on the 31^st day of March of the year following, and the accounts shall be maintained on accrual basis.

b) Every Web Aggregator shall submit to the Authority, a copy of the audited financial statements along with the auditor’s report thereon within ninety days from the close of the accounting year along with the remarks or observations of the auditors, if any, on the conduct of the business, state of accounts, etc., and a suitable explanation on such observations shall be appended to such accounts filed with the Authority.

c) Every Web Aggregator shall, within ninety days from the date of the Auditor’s report take steps to rectify any deficiencies, made out in the auditor’s report and inform the Authority accordingly.

d) All the books of account, statements, document, etc., shall be maintained at the head office of the Web Aggregator or such other branch office as may be designated by them and notified to the Authority, and shall be available on all working days to such officers of the Authority, authorised in this behalf by it for an inspection.

e) All the Electronic Records, books and documents, statements, contract notes etc., referred to in this regulation and maintained by the Web Aggregator shall be retained for a period of at least ten years from the end of the year to which they relate. However the Digital Records / documents pertaining to the cases of legal disputes reported and the disposal of the same is pending for a decision from courts the Records are required to be maintained till the disposal of the cases by the court.

22)Disclosures to the Authority —

a) A Web Aggregator shall disclose to the Authority, as and when required by it, in any event not later than thirty days of a requisition, the following information, namely—

i) any change in the information or particulars previously furnished, which have a bearing on the license granted to it;

ii) the names of the clients whose insurance portfolio he manages or has managed;

iii) Any other Information / requirement specified by the Authority from time to time.

b) A Web Aggregator shall disclose to the Authority on his own any material change in the composition of the Web Aggregator within 30 days of such change.

c) A Web Aggregator shall take the prior approval of the Authority for the following.

i) Change of Principal Officer;

ii) Change in Director/s;

iii) Change in name of the company;

iv) Change of address of registered office / Corporate Office;

v) Engaging the services of service providers or third party vendors;

vi) Change of location of the Servers hosting the comparison website

d) A Web Aggregator shall furnish to the Authority the following information.

i) Opening/closing of branch offices ;

ii) list of qualified persons;

iii) in respect of a claim under the professional indemnity policy;

iv) acquiring of any property;

23)Action against the web aggregator:

e) The Authority may cancel the License granted to a web aggregator or take any other action as deemed appropriate under the Act, in case the web aggregator fails to exercise due diligence or comply with any of the obligations under this Regulation or act contrary to the provisions of the Act, Insurance Regulatory and Development Authority Act, 1999, the rules and regulations framed there under and such other directions as issued by the Authority from time to time.

f)Provided that no such action shall be initiated by the Authority and order passed thereafter without giving an opportunity of hearing to the web aggregator.

24)Penal Provision

In case a licensed Web Aggregator violates any of the provisions of Insurance Act, 1939, IRDA Act, 1999 and Rules and Regulations made there under, any circular/guidelines/orders issued by the Authority from time to time, the Authority may impose appropriate penalty depending on the nature/gravity of violation.

25)Action against the Insurer:

a) An Insurer that fails to comply with the Obligations of insurers as outlined in Schedule F of this regulation

b) An Insurer that fails to furnish any information or furnishes wrong information to the Authority relating to the agreement and transactions with web aggregator, or;

c) An Insurer that fails to comply with this regulation and such other directions issued by the Authority from time to time shall be liable for action as provided under the provisions of the Act, the Insurance Regulatory and Development Act, 1999 (41 of 1999) and the relevant Regulations made there under.

d) Provided that no such action shall be initiated by the Authority and order passed thereafter without giving an opportunity of hearing to the Insurer.

26)Power of Authority to Inspect.

a) The Authority may appoint one or more of its officers or a qualified chartered accountants or Information Technology officials as inspecting authority to undertake inspection of the premises of the web aggregator to ascertain and see how activities are carried on, and also to inspect the books of account, records, and documents of the web aggregator for any of the purposes.

b) The purposes referred to in this regulations are as follows:

i) to ensure that the provisions of the Act, rules and regulations are being complied with

ii) to ensure that the Lead management system is managed as per the provisions of this regulation

iii) To investigate the affairs of the web aggregator suomoto in the interest of proper development of insurance business or in policyholder’s interest.

27)Power of the Authority to issue clarifications:

In order to remove any difficulties in respect of the application or interpretation of any of the provisions of this regulation, the Authority may issue appropriate clarifications.

28) Action against a person acting as a Web Aggregator without a valid license—

i. From the date of commencement of this regulation no person can function as a Web Aggregator unless a license has been granted to him by the Authority under this regulation.

ii. Notwithstanding and without prejudice to initiation of any criminal proceedings against any person, who acts as a Web Aggregator without holding a valid license issued under this regulation, the Authority may invoke against such a person penal action under the Act.

29)General —

a) Any disputes arising between an Web Aggregator and an insurer may be referred to the Authority by the person so affected; and on receipt of the complaint or representation, the Authority may examine the complaint and if found necessary proceed to conduct an enquiry or an inspection or an investigation in terms of this regulation.

b) In case the license of a Web Aggregator has been cancelled or an applicant’s application has been rejected, the Web Aggregator or the applicant is allowed to reapply after one year from the date of Authority’s order/court order whichever is later. The Authority may consider the application afresh on merits.

c) Wherever it is found that the Web Aggregator who has been licensed is not doing any amount of business during the entire/ part of the previous licensed period, the Authority may refuse to renew the license.

SCHEDULE I

FORM A

See regulations 3 and 4

Insurance Regulatory And Development Authority (Web Aggregators) Regulations, 2013

Application for Web Aggregators license.

APPLICATION FOR GRANT OF LICENSE / RENEWAL OF LICENSE

NAME OF THE APPLICANT:______________________________________

ADDRESS :___________________________________________

________________________________________

CONTACT ADDRESS	:	______________________
TELEPHONE NO	:	______________________
FAX NO	:	_______________________
E-mail	:	_______________________

Instructions for filling up the form:

It is important that before this application form is filled in, the regulations made by the Authority are studied carefully.

Applicants must submit a duly completed application form together with all appropriate, supporting documents to the Authority.

Application for License will be considered only if it is complete in all respects.

Applicants should sign the applications themselves.

Information which needs to be supplied in more details may be given on separate sheets which should be attached to the application form.

PARTICULARS OF THE APPLICANT

1.1 Name of the Applicant: ______________________________________

1.2 Address - Principal Place of business / Registered Office.




Pin Code	Email
Tel No	Fax No

1.3 Address for Correspondence:




Pin Code	Email
Tel No	Fax No

** (Attach List of Addresses of Branch Offices if any)

Name and Designation of the Principal Officer

2. ORGANISATION - STRUCTURE

2.1 Status of the Applicant:

(e.g. Limited company-Private/Public, partnership, proprietary, others. If listed, names of Stock Exchanges and latest share price to be given)

Name of the company	Status	Date of Incorporation	Place of	Name of stock
Name of the company	Status	Date of Incorporation	Place of	exchanges where
		DD_MM_YYYY	Incorporation	listed

2.2 Scope of business as described in the Memorandum of Association

(To be given in brief along with copy of Memorandum and Articles of Association or Partnership Deed).

2.3 List of major shareholders (holding 5% and above of applicant directly or along with associates

	Share holding as on:______________
Name of shareholder	No of Shares held	% of total paid up capital of the company

2.4 Particulars of all Directors -

Name	Designation /	Qualification	Share in applicant	Directorship in other
	Position		Company	companies

2.5 Name and activities of associate companies/concerns

Name of Company	Address	Type of activity	Nature of Interest	Nature and
/Firm		handled	of Promoter/	interest of
			Director	applicant company

Whether any one or more persons of the associate companies/ concern are interested in the applicant~s business.

2.6Name and Address of the Principal bankers of the applicant

2.7Name and address of the statutory auditors

3. BUSINESS INFORMATION

3.1 Three years business plan document with projected volume of activities and income (including anticipated) for which License sought is to be specifically mentioned and attached to this application.

3.2 Organisation Chart separately showing functional responsibilities to be enclosed

3.3 Particulars of Key Management Personnel

Name	Designation	Qualification	Experience with	Date of	Functional
Name	Designation	Qualification	Particular reference	Date of	Functional
	Position		to Insurance activities	Appointment	Areas

3.4 Any other information considered relevant to the nature of services rendered by the applicant.

4. FINANCIAL INFORMATION

4.1	Capital Structure	Year prior to the	(Rs. in lakhs)
		Year prior to the		Preceding year	Preceding year
Capital Structure		Preceding year of		Preceding year	Preceding year
Capital Structure		Current year		(Mention year)	(Mention year)
Authorized Capital and		(Mention year)
issue capital

Paid up Capital
Free Reserves (Excluding Revaluation Reserves
Total ((b) + (c)

Particulars	Year prior to the preceding	Preceding year	Current year
Particulars	Year prior to the preceding	Preceding year	Current year
Fixed Assets	year of current year	(Mention year)	(Mention year)
Plant & Machinery
Office Equipment
Quoted Investments
Unquoted Investments
Details of Liquid Assets
Others

(Details of Investments, Loans & Advances made to Associate Companies/Firms where Promoters/Directors have an interest is to be separately given).

Note: Please enclose three years audited annual accounts. If minimum capital requirement has been met after last audited annual accounts, audited statement of accounts for the period ending on a later date should also be submitted.

5. OTHER INFORMATION, IF ANY

5.1 Details of all settled and pending disputes: (Attach separate sheet and give dull information in the format shown below)

Nature of dispute	Name of the party	Pending/settled

** Attach sheet if required

5.2 Details, if any of any economic offences by the applicant or any of the Directors, or key managerial Personnel in the last three years.

For and on behalf of
__________________________		___________________________
(Signature and Name of Applicant)		(Signature & Name of Applicant)
{Block Letters}		{Block Letters}
Place:
Date:

Application for Permission for Telemarketing / Outsourcing work.

1.1 Name of the Applicant: ______________________________________

1.2 Address - Principal Place of business / Registered Office.




Pin Code	Email
Tel No	Fax No

1.3 Address for Correspondence:




Pin Code	Email
Tel No	Fax No

** (Attach List of Addresses of Offices / Branch Offices from where activities will be undertaken)

1.4 Particulars of all Directors: -

Name

Designation /

Qualification

Share in applicant firm /

Directorship in other

Position

Company

companies

1.5

Name and activities of associate companies/concerns

Name of Company

Address

Type of activity

Nature of Interest

Nature and

/Firm

handled

of Promoter/

interest of

Director

applicant company

1.6

Organisation Chart separately showing functional responsibilities to be enclosed

Attach Organisational Chart here

1.7 Particulars of Key Management Personnel

Name		Designation	Qualification	Experience with	Date of	Functional
Name		Designation	Qualification	Particular reference	Date of	Functional
		Position		to Insurance activities	Appointment	Areas


Add Additional chart		if required
1.7	Particulars of Telemarketing Personnel
Name		Designation	Qualification	Experience with	Date of	Functional
Name		Designation	Qualification	Particular reference	Date of	Functional
		Position		to Insurance activities	Appointment	Areas

Add Additional chart if required

1.8 Any other information considered relevant to the nature of services rendered by the

applicant.

__________________________ ___________________________

(Signature and Name of Applicant) (Signature & Name of Applicant)

{Block Letters} {Block Letters}

Place:

Date:

DECLARATION

THIS DECLARATION IS TO BE SIGNED BY TWO OF THE DIRECTORS

I/We hereby apply for license to undertake Tele-Marketing / Outsourcing work relating to insurance.

I/We have gone through the Insurance Regulatory and Development Authority (Web Aggregators) Regulations, 2013 and am/are satisfied that I/ We am/ are eligible to apply for the Web Aggregators license.

I/We state that I/We have truthfully and fully answered the questions above and provided all the information which might reasonably be considered relevant for the purposes of my/our License.

I/We declare that the information supplied in the application form is complete and correct.

I/We undertake that I/We shall not allow or offer to allow, either directly or indirectly, as an inducement to any person, any rebate of the whole or part of the remuneration earned by me/us during the License period.

I/We undertake to service the run-off business on the books at the time of cancellation or non renewal of License.

I/We declare that I/we do not possess an insurance agent License under section 42 of the Act.

For and on behalf of

__________________________ ___________________________

(Signature and Name of Applicant) (Signature & Name of Applicant)

{Block Letters} {Block Letters}

Place:

Date:

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

(Web Aggregators) Regulations, 2013

Schedule II

FORM B

see regulations 3 & 4

LICENSE

In exercise of the powers conferred by sub-section (1) of section 42D of the Insurance Act, 1938 (4 of 1938) the Authority hereby grants a License to

__________________________________________________

to act as _________________________________________________

under that Act.

License Code for the Web Aggregator is ____________________________________

1. This License shall be valid from ____________ to ___________

2. This License is subject to the Act, Insurance Regulatory and Development Authority Act, 1999 (4 of 1999) and Insurance Regulatory and Development Authority (Insurance Brokers) Regulations, 2002 and shall not be construed to be in compliance with or in conformity to any other Act, rules or regulations.

Place :

By Order

Date :

For and on behalf of

Insurance Regulatory and Development Authority

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

(Web Aggregators) Regulations, 2013

Approval to functioning as Telemarketer and for Outsourcing work

In exercise of the powers conferred by sub-section (1) of section 42D of the Insurance Act, 1938 (4 of 1938) the Authority hereby grants approval to

M/s __________________________________________________

to undertake Insurance Telemarketing and Insurance Outsourcing work under that Act.

License Code for the Web Aggregator is

_____________________________________

1) This License shall be valid from ____________ to ___________

2) This License is subject to the Act, Insurance Regulatory and Development Authority Act, 1999 (4 of 1999) and Insurance Regulatory and Development Authority (Insurance Brokers) Regulations, 2002 and shall not be construed to be in compliance with or in conformity to any other Act, rules or regulations.

Place :

By Order

Date :

For and on behalf of

Insurance Regulatory and Development Authority

Schedule III

Forms to be attached with the Application Form A

1. Bank Draft for Rupees Ten Thousand Only drawn on any scheduled bank in favour of Insurance Regulatory and Development Authority payable at Hyderabad.

2. Copy of the Certificate of Registration issued by the Registrar of Companies

3. Memorandum of Association and Articles of Association copies

4. Copy of PAN Card of the Company

5. C.V.s of Directors with copies of Qualification Certificates

6. C.V. of Principal Officer with copies of Qualification Certificates

7. Affidavit duly notarized certifying that

a. The directors of the company and the Principal Officer are major and not found to be of unsound mind by a court of competent jurisdiction and not found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of attempt to commit any such offence by a court of competent jurisdiction in the past five years. The applicant/directors are not involved in any economic offences in the last three years.

b. None of the directors/employees of the company are holding directorships/employment in or represent any other insurance related entity.

c. The company shall ensure that at no point of time during the period of license, the net worth of the company is reduced below rupees ten lakhs.

d. The Applicant Company or its Directors or Principal Officer are not licensed / registered as an Insurance Agent or Corporate Agent or Micro Insurance agent or TPA or surveyor or Loss Assessor or an Insurance Broker under the relevant regulations of IRDA.

e. The Applicant Company or its Directors or Principal Officer are not a related party of an insurer, insurance broker, corporate agent, micro insurance Agent, TPA, Surveyor or a loss assessor at the time of submission of application for web aggregator License.

8. Snap shots of contents of proposed website.

9. Confirmation of place of hosting website such as registered office, operations office.

10. List of persons who have control over or responsibility for the website contents in relation to insurance web aggregation.

11. Certificate of Chartered Accountant for the Net Worth and Shareholding Pattern of the Company as on the date of submission of Application.

12. Copies of the Annual Report and Audited Accounts for the previous three financial years

13. Business Plan for next three years

14. Details of infrastructure available

15. Organisational Chart showing functional responsibilities

Note: All the copies of the documents to be attested by the Principal Officer.

Schedule IV

Forms to be attached with the Renewal Application Form A

1. Bank Draft for Rupees Ten Thousand Only drawn on any scheduled bank in favour of Insurance Regulatory and Development Authority payable at Hyderabad.

2. Copy of the Certificate of Registration issued by the Registrar of Companies, provided there is any change during the previous License Period

3. Memorandum of Association and Articles of Association copies, , provided there is any change during the previous License Period

4. C.V.s of Directors if any inducted during the License Period with copies of Qualification Certificates

5. Affidavit duly notarized certifying that

b. None of the directors/employees of the company are holding directorships/employment in or represent any other insurance related entity.

c. The company shall ensure that at no point of time during the period of license, the net worth of the company is reduced below rupees ten lakhs.

f. There was no violation, of any Act / Rule / Regulation / Guidelines / Code of Conduct / Circulars as applicable, by the company or the directors or the Principal Officer and by its employees during the period of License.

6. Snap shots of contents of changes made if any to the website.

7. Confirmation of place of hosting website such as registered office, operations office.

8. List of persons who have control over or responsibility for the website contents in relation to insurance web aggregation.

9. Certificate of Chartered Accountant for the Net Worth and Shareholding Pattern of the Company as on the date of submission of Application.

10. Copies of the Annual Report and Audited Accounts for the previous three financial years

11. Summary of Operational Results for previous three financial years and Business Plan for next three years

12. Details of infrastructure available

13. Organisational Chart showing functional responsibilities

14. Copies of certificates for the qualifier training undergone and exam passed by the Directors / Principal Officer and other employees responsible for the operations including the tele callers, verifiers and Outsourcing activities where license is granted to carry out the tele marketing and or outsourcing work

15. Copies of the Professional Indemnity Insurance for previous three years.

Note: All the copies of the documents to be attested by the Principal Officer.

Schedule V

1) The Eligible Educational Qualifications for Principal Officer are as listed below:

i) Bachelors/ Masters degree in Arts, Science, or Social Sciences or Commerce or Engineering or Law or Management or its equivalent from any institution / university recognized by any State Government or the Central Government; and

ii) Associate/ Fellow of the Insurance Institute of India, Mumbai; or

iii) Associate/Fellow of the Institute of Risk Management, Mumbai; or

iv) Any post graduate qualification of the Institute of Insurance and Risk Management, Hyderabad; or

v) Associate/ Fellow of the Institute of Chartered Accountants of India , New Delhi; or

vi) Associate/ Fellow of the Institute of Cost and Works Accountants of India, Kolkata; or

vii) Associate/ Fellow of the Institute of Company Secretaries of India, New Delhi; or

viii)Associate/ Fellow of the Institute of Actuaries of India; or

ix) Certified Associate ship of the Indian Institute of Bankers, Mumbai; or

x) Any other qualification specified from time to time by the Authority under this regulation.

2) The Principal officer of the applicant should have completed the fifty hours of theoretical and practical training on insurance from an institution recognized by the Authority from time to time and passed an examination, at the end of the period of training mentioned above, conducted by the National Insurance Academy, Pune or any other examining body recognized by the Authority.

(i) Provided that where the principal officer of the applicant:

i) has been carrying on reinsurance related activity or insurance consultancy for a continuous period of seven years, preceding the year in which such an application is made; or

ii) has for a period of, not less than seven years prior to the application made to the Authority has been a principal underwriter or has held the position of a Manager in any one of the nationalised insurance companies in India; or

iii) is an Associate/ Fellow of the Insurance Institute of India, Mumbai; or Associate/ Fellow of the Institute of Risk Management, Mumbai; or Associate/ Fellow of the Institute of Actuaries of India; or any post graduate qualification of the Institute of Insurance and Risk Management, Hyderabad;

the theoretical and practical training from an institution recognised by the Authority from time to time according to a syllabus approved by the Authority shall be twenty five hours, and.

Schedule VI

Obligations of Web Aggregators.

a) Web aggregator shall display License obtained from the Authority and details of validity of license on its web site.

b) Web aggregator shall prominently display the names of insurers with whom it has an agreement to refer leads in the Home page of the website.

c) Web Aggregator desirous of carrying out Telemarketing or Distance marketing should register as a Telemarketer, an entity registered with Telecom Regulatory Authority of India under Chapter III of the Telecom Commercial Communications Customer Preference Regulations, 2010 (as amended from time to time) to conduct the business of sending commercial communications on behalf of Insurers, Corporate Agents or Web Aggregators and display the details of the registration in the website.

d) Web aggregator shall state clearly and unequivocally that insurance is the subject matter of solicitation.

e) At no point of time of its functioning, a web aggregator shall have net worth below rupees ten laths.

f) At no point of time of its functioning, a web aggregator shall have referral arrangement with any Insurer or act as a corporate agent, micro insurance agent, TPA, Surveyor or a loss assessor.

g) Web aggregator shall maintain an effective lead management system and ensure that leads are recorded and monitored through the LMS System

h) Web aggregator shall maintain the records and the reports of its activities under the agreement with Insurer, in the manner specified in the agreement entered into between the Insurer and the web aggregator.

i) Web aggregator shall along with its employees (whatever their designation may be) comply with all the provisions of the Act, the IRDA Act, 1999, the rules and regulations framed there under and other directions issued by the Authority from time to time.

j) Web aggregator, its employees or promoters shall not accept any payment from Insurer other than the remuneration specified in Section 15 of the regulations.

Schedule VII

Code of Conduct for Web Aggregator:

a) Conduct in matters relating to clients relationship— Every Web aggregator shall:

i) conduct its dealings with clients with utmost good faith and integrity at all times;

ii) act with care and diligence;

iii) ensure that the client understands his relationship with the Web Aggregator and on whose behalf the Web Aggregator is acting;

iv) treat all information supplied by the prospective clients as completely confidential to themselves and to the insurer(s) to whom the business is being offered;

v) take appropriate steps to maintain the security of confidential documents in their possession;

vi) understand the type of client it is dealing with and the extent of the client’s awareness of risk and insurance;

vii) Avoid conflict of interest.

b) Conduct in relation to complaints handling —

Every Web Aggregator shall: —

i) have in place a system for recording and monitoring complaints.

ii) accept complaints either by phone or in writing;

iii) ensure that the websites contains details of complaints handling procedures and provides a facility to the complainant to log complaints online;

iv) ensure that communication of customers in any form, written / phone / fax / email / Messaging etc are acknowledged promptly and in no case beyond five working days from the date of receipt of such complaint

v) ensure that the grievance is resolved to the fullest satisfaction of the customer

vi) ensure that response letters are sent to the complainant on the resolution of the grievance, and the complainant is informed of the further redressal procedure available to him;

vii) ensure that complaints are dealt with at a suitably senior level

c) Conduct in matters relating to advertising—

Every Web Aggregator shall ensure that website conations no advertisement or any information that is prohibited in regulation 10 above; and regulation 10 is complied with strictly

d) Conduct in matters relating receipt of remuneration (more relevant to direct side)— Every Web Aggregator shall:—

i) disclose whether in addition to the remuneration prescribed under this regulation, he proposes to charge the insured, and if so in what manner;

ii) advice the insured in writing of the insurance premium and any fees or charges separately and the purpose of any related services;

iii) if requested by an insured, disclose the amount of remuneration or other remuneration it receives as a result of effecting insurance for that client. This will include any payment received as a result of securing on behalf of the client any service additional to the arrangement of the contract of insurance; and

e) Conduct in relation to matters relating to training — Every Web Aggregator shall:

i) Ensure that its staff are aware of and adhere to the standards expected of them by this code;

ii) ensure that staff is competent, suitable and have been given adequate training;

iii) ensure that there is a system in place to monitor the quality of advice given by its staff;

iv) ensure that members of staff are aware of legal requirements including the law of agency affecting their activities; and only handle classes of business in which they are competent;

v) draw the attention of the client to Section 41 of the Act, which prohibits rebating and sharing of commission.

vi) Every Web Aggregator shall display in every office where it is carrying on business and to which the public have access a notice to the effect that a copy of the code of conduct is available upon request and that if a member of the public wishes to make a complaint or requires the assistance of the Authority in resolving a dispute, he may write to the Authority.

f) Every Web Aggregator shall abide by the provisions of the Insurance Act,1938 (4 of 1938), Insurance Regulatory And Development Authority Act 1999(41 of 1999), rules and regulations made there under which may be applicable and relevant to the activities carried on by them as Web Aggregator

Schedule VIII

Obligations of Insurers.

a) An Insurer shall not pay any fee or remuneration, by whatever name called, to web aggregators other than what is prescribed in section-15 of this regulation. They shall also refrain from reimbursing expenses incurred by web aggregators towards maintenance of data base, infrastructure, training, entertainment, development, communication, advertisements, sales, promotion and towards any other expense.

b) An Insurer shall not pay any fee or remuneration, by whatever name called, on any type of renewal premium / policy payable from the second year and the subsequent years, to web aggregators.

c) An Insurer shall not pay any fee or remuneration, by whatever name called to any person/entity who owns/maintains a website not approved by the Authority under this regulation that is engaged in web aggregation or product/price comparison.

d) An Insurer shall not make any payment, by whatever name called, in the form of advance to a web aggregator.

e) An Insurer shall not pay any remuneration after termination of agreement with web aggregator.

f) An Insurer shall not pay any remuneration after the lapse of validity of License given by the Authority to the web aggregator.

g) An Insurer shall obtain and maintain records of leads / data obtained from each web aggregator through the lead management System of the web aggregator, the details of the policies sold out of the leads / data thus obtained and the information regarding the payments made in Form B.

h) An Insurer shall submit to the Authority, the records referred to in different sections of this regulation and the reports, if any, of its activities as relevant for the purpose of this regulation, whenever called upon to do so.

i) Insurers shall share product information and premium rates with web aggregators and the information so shared shall match with the product approved by the Authority.

Schedule IX

Outsourcing of the activities mentioned herein below shall be at the discretion of the Insurers. However, it is reiterated that execution of services shall remain to be Core Activity to be carried out by the Insurers.

Outsourcing relationships between Insurers and Web Aggregators shall be governed by written contracts between the Insurer and the Web Aggregator that clearly describe all material aspects of the outsourcing arrangement, including charges for services, the rights, responsibilities, and expectations of all parties.

Activities that can be Outsourced to the Web Aggregator by Insurer

	Premium	? Printing of Premium Reminders / other reminders pertaining to the polices
A	Collection	sold and serviced by the WA
		? Dispatch of Premium Reminders / other reminders pertaining to the polices
		sold and serviced by the WA
		? Collection of Premiums in ONLINE MODE for Insurance clients who utilize
		the Web Aggregators Web Services.
		? Collection of Premiums should be through Online Payment websites of
		Web Aggregators e.g.
		?	VISA,
		?	MasterCard,
		?	Bill Desk,
		? Payments through RBI approved gateway e.g. NEFT RTGS
		? RBI Cleared Payment Collectors.
		? Collection of premiums should be in ONLINE MODE using the Web
		Aggregators website only, and NOT through cash / cheque etc.
		? It is the responsibility of the insurer and Web Aggregator to ensure the
		compliance of Sec. 64-VB of the Insurance Act, 1938


	Policy	? Receiving requests in physical/electronic/telephonic forms from clients and
B	Services		transmitting to the insurer without accessing the original data base of
B				Insurers for the following areas of Policy Servicing;
			o Issuance of Policy Document / Certificates of Insurance
			o Change of Name / Address
			o Fund Switching/ Premium Redirection
			o Surrender, Maturity, Withdrawals Free look Cancellations Payouts
			o	Loan Against Policy
			o Change of Policy Terms and Conditions / Details Change
			o Registration of Assignment / Nomination
			o Revival / Cancellation of Policy
			o	Transfer of Policy
			o	Substitution of Vehicle Communications, Reports, Printouts to
				Policyholders / Claimants
			o Withdrawal of No Claim Bonus
			o	Declarations Update
			o	Extension of Cover
			o	Duplicate Policy
			o Document Collection for complying with AML and KYC norms

Schedule X

Telemarketing and Distance Marketing by Web Aggregators

1. Telemarketing and Distance Marketing

Web Aggregator intending to carry on ‘Telemarketing ‘ and ‘Distance Marketing’, for the purpose of solicitation of insurance business shall

a) Register as a ‘Telemarketer’, with Telecom Regulatory Authority of India under Chapter III of the Telecom Commercial Communications Customer Preference Regulations, 2010 (as amended from time to time) to conduct the business of sending commercial communications on behalf of Insurers, Corporate Agents

or Web Aggregators and shall be governed by the rules and regulations as outlined in the Telecom Commercial Communications Customer Preference Regulations, 2010 (as amended from time to time).

b) Engage ‘Tele-caller’ as defined in Section 1 of these regulations for carrying out the Telemarketing and Distance Marketing related work.

c) Shall be governed by the rules and regulations governing ‘Telemarketing ‘ and ‘Distance Marketing’, is laid out in Annexure 2 of this regulations.

d) While considering the application, the Authority may, if it so desires, verify the information furnished by the applicant including the supporting documents and also inspect the applicant’s offices and infrastructure.

e) The Authority may, after considering the application with reference to the matters specified in this regulation, grant License to the web aggregator to function as Telemarketer, which shall be valid for a period of three years from the date of grant of such License.

Web aggregator shall be governed by the rules and regulations as outlined in the Telecom Commercial Communications Customer Preference Regulations, 2010 (as amended from time to time).

2. Persons engaged by Web Aggregator for telemarketing:

a) For the purpose of solicitation of insurance business through ‘Telemarketing ‘ and ‘Distance Marketing’, Web Aggregators should engage Tele-caller as defined in Section I of this regulation

b) Telecallers should be employees on the rolls of the Web aggregator and

should have undergone statutory training as prescribed by IRDA.

c) Web Aggregators shall be responsible for all acts of commission and omission of the telecallers deployed on their behalf.

d) Telecallers alone are permitted for soliciting and concluding the sale of insurance products in distant mode.

e) Telemarketers shall be barred from soliciting insurance in their individual capacity in any mode, or on behalf of any organization other than the Telemarketer employing him.

3. Agreements between Insurer and Web Aggregator.

a) The agreement between the Insurer and Web Aggregator, shall inter alia include the following clauses:

b) The Telemarketer shall maintain/preserve recordings of all the tele-calls in a manner that is compliant with the provisions of this regulation, till such records are transferred in satisfactory condition to the insurer.

c) The Telemarketer shall maintain records of all the telecallers employed by them along with their training and assessment particulars.

d) The records under (i) & (ii) above shall be open to inspection by the Authority.

4. Distance Marketing by Web Aggregators.

a) Web Aggregators/ Telemarketers shall not exclusively promote the products of any particular insurer, and shall suggest the best available product in the market that fits the needs of the client.

b) The price comparison charts that are displayed shall be up to date and reflect a true picture of all the available and suitable products under each category.

c) Insurers shall not pay the Web Aggregators any remuneration other than the payments as specified in this regulation. Insurers shall make no payments by any name to Web Aggregators or their related parties towards infrastructure or any account other than payments on the policies solicited or procured over Web Aggregation and distance mode.

d) Insurers shall specifically identify the proposals procured by Web Aggregators over distance mode and obtain all relevant records pertaining to such policies. Insurers shall produce such records before the Authority in case of dispute involving alleged violation of breach of conduct by the Web Aggregator.

5.Training of Tele-callers.

a) Telecallers deployed by Web Aggregators to solicit business should be

employees on the rolls of the Web aggregator and should have undergone statutory training as prescribed by IRDA

b) Every Tele-caller shall be trained at an institute accredited for pre-license training of agents by the Authority in the matters specified in the regulation.

c) The training shall be for duration of not less than 25 hours as per syllabus to be prescribed by the IRDA in matters related to regulations, disclosures, ethical conduct of business and specific instructions to be complied with while making the calls.

d) The tele-callers shall clear the post-training test to be conducted by the institution authorized by the regulator.

e) Web Aggregators shall maintain a register of all persons engaged by them or by the telemarketers employed by them for the purpose of lead generation/solicitation of insurance business. The register shall, apart from the name and address of the Tele-caller, also contain valid copies of his proof of identification and other relevant credentials. Insurers shall allot a distinctive code number to every Tele-caller and record the same in a register maintained for the purpose.

6. Process of lead generation/Solicitation

Solicitation of insurance as well as lead generation shall be in specific compliance with the following norms:

7. Standardized Script

(i) Insurers/Web aggregators shall prepare standardized scripts for presentation of benefits, features and disclosures under each of the products proposed to be sold over the distance modes. Solicitation and lead generation under distant mode shall be in line with the standardized script.

(ii) The scripts shall be incorporating all the Key Features of the product and shall be approved by the compliance officers of the respective insurers. The scripts shall be filed with the Authority under “Use & File” procedure within 15 days of their License by the Principal Officer.

a) Introduction

(i) The communication shall clearly highlight the name of the insurer.

(ii) The fact that the purpose of approach is lead generation/solicitation of insurance shall be clearly highlighted.

b)Consent of the client

(i) The Tele-caller shall ascertain if the client is interested in continuing with the subject, and the process of solicitation shall proceed further only on receiving the consent in explicit terms.

(ii)The client shall be given an option to continue with the subject or exit the page at every stage in case of electronic modes. The hours during which calls are made shall be in accordance with orders issued by TRAI/DoT from time to time.

(iii) In case of telephonic solicitation the name of the caller shall be disclosed and the language options available must be indicated. The subsequent communication shall continue only in the language chosen by the client.

(iv) Tele-callers shall inform clients that the call is being recorded and that the client is entitled to a voice copy, if he so desires, at any time during the term of the policy or until a satisfactory settlement of claim, whichever is later.

(v) No inconvenience, nuisance or harm shall be caused to the clients in the course of solicitation or thereafter. Full disclosures shall be made to the clients under all modes of distance marketing and the requirements of confidentiality, privacy and non-disclosure shall be complied with.

c) Client Information

All relevant information pertaining to the client as well as the person/asset to be insured shall be obtained, and solicitation shall be strictly on the basis of analysis of the client’s needs as specified by the Authority from time to time.

d) Product benefits & Features

The standardized script shall cover the following items in the course of product presentation:

i. The specific responses of the client in the form of agree/disagree, yes/no, accept/reject, understand / don’t understand, as applicable, against each of the items below, under all modes of distance solicitation.

ii. Name of the product suggested and its nature and parameters.

iii. Insurance cover available under the product for a specified amount of annual premium, or, conversely, premium chargeable towards a specified amount of insurance cover.

iv. The scope of cover, perils covered and not covered, exclusions, deductibles or franchise, co-payments, loading/discounts on premiums, add-on covers, conditions, other terms and benefits, mid-term inclusions, short period scales, basis of sum insured, warranties, clauses and endorsements, compliance with Section 64VB of the Insurance Act, 1938 – payment of premium before commencement of risk, etc, as applicable.

v. The contents of the “key features document” as and when specified by the Authority.

vi. The right to cancel the policy within 30 days of receipt of the policy in case of disagreement with the terms of the policy under all life contracts and covers tied to credit/debit/other cards, and for all personal accident and health insurance policy contracts with a term of 3 years or more offered by insurers over distance mode, provided no claim has already been made on the policy.

vii. Disclosure of rates of commission available on the product solicited upon the request of the client.

8. Premium Ceilings in case of sale of Life Insurance and prohibition of sale of Universal Life Products over telephonic mode

(i) Insurers shall not solicit non-single premium type policies for annualized premiums exceeding Rs 50,000/- over telephonic mode (voice as well as SMS).

(ii) Single premium Policies shall not be solicited for a premium of more than Rs 1,00,000/- over telephonic mode.

(iii) No ULIP or variable insurance product shall be solicited or sold over distance marketing mode.

9. Post-Solicitation Process

Once the client agrees to purchase a policy, the proposal form and premium acceptance shall comply with the following requirements:

(i) The premium towards the policy may be debited online or interactive voice response medium or through a manual collection subject to compliance with the procedures and controls prescribed by the RBI.

(ii) The norms applicable to insurers as regards AML and PAN need to be complied with in the process of selling a policy over distance marketing mode.

(iii) In all instances where a policy is issued without obtaining a proposal in physical form, insurers shall forward a verbal transcript of the voice/electronic

record of the queries raised and answers thereto on the basis of which the policy has been underwritten, along with the policy bond.

(iv)For policies solicited/sold over distance mode, insurers shall issue policies in exactly the same format and medium as in case of sale through physical interface, duly enclosed by the requisite annexures.

(v) The address and toll-free number of the office to be contacted by the policyholder in case of a servicing need or grievance shall be informed to the client.

(vi)Before conclusion of sale the Telemarketer / specified person / employee (as the case may be) shall divulge his name and distinctive code number / license / employee number to the prospect and this shall form part of the

recorded conversation for the sake of future verification.

(vii) The records pertaining to every call made and SMS sent by a Telemarketer/Corporate Agent/Web Aggregator that materializes into a policy shall be transferred to the insurer’s location within 30 days of conclusion of sale. In case of telephone calls the records transferred shall be the recordings of the entire conversation.

10. No Unfair Denial of Insurance Cover

When a client approaches a Web Aggregator over distance mode proposing for insurance cover, the latter are duty-bound to consider the case on merits and in accordance with regulatory directions and their own norms. In no case shall they resort to an unfair denial of cover to a client who seeks insurance.

11. Preservation of Records

The insurer / Web Aggregator shall preserve, in an inalterable and easily retrievable form, a voice/electronic/physical record, as applicable, of the entire process beginning with lead generation/solicitation and concluding in sale of insurance, for a period of six months beyond the term of the policy or until satisfactory settlement of claim, whichever is later. Voice and electronic records shall be digitized and encrypted for storage to ensure reliability and security of the data.

12.Verification Process

a. Web Aggregators shall monitor the calls live by arranging for listening to at least 1% of the calls as they happen.

b. Web Aggregators shall verify at least 3% of calls leading to sales for compliance, by engaging a team of dedicated employees to listen to the call recordings. The observations made in the course of verification shall be preserved in a retrievable form for a period of not less than three years.

c. Insurers shall make verification calls, to monitor the quality of sales, to a minimum of 3% of the policyholders who purchase insurance over distance marketing mode, every month . The purpose of verification calls is to ascertain whether the client has understood the benefits, features and disclosures of the product purchased correctly. Verification calls shall also bear a standardized script and the records of calls shall be preserved for a period (a) not less than 15 months from the date of policy or untilsatisfactory claim settlement, whichever is later, in case of non-life contracts (b) not less than 3 years in case of life insurance policies.

d. The policies under (ii) and (iii) above shall be selected according to a random pattern, making sure to cover each product category and mode of sale.

13.Certification of Compliance

a. The Principal Officer of each Web Aggregator shall submit to the Authority, at the end of each financial year, a certificate confirming that the Web Aggregator has complied with all the provisions of this regulation during the financial year.

14. Disputes

For the purpose of this regulation the contract of insurance shall be deemed to include the contents of KFD and the records of calls to the client pertaining to the product. In case of disputes involving specific wordings of the policy, the client shall have the right to give primacy to the wordings of the KFD and the calls over the specific wordings of the policy.

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IRDA (Web Aggregators) Regulations 2013 Exposure Draft (with suggested chan.doc
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