The International Financial Service Centres Authority on 3rd February 2022 has published the International Financial Services Centres Authority (Insurance Web Aggregator) Regulations, 2022 which aims to put in place a process of registration and operations of Insurance Web Aggregator (IWA) in an International Financial Services Centre under the regulatory purview of the International Financial Services Centres Authority.
The eligibility criteria for registration as IWA shall be as follows:
The Authority while considering an application for grant of registration as IWA shall take into account all matters which are necessary for carrying out the functions of the IWA, including but not limited to the compliance with the following conditions, namely-
- The Applicant, its Directors, Designated Partners, Key Managerial Personnel, Principal Officer or
- Authorized Verifier are not suffering from any of the disqualifications specified under sub-section (5) of section 42 D of the Insurance Act, 1938 and he Memorandum of Association of the company, limited liability partnership agreement of the LLP or incorporation documents of Applicant shall mention the ‘business of web aggregation of Insurance Products’ as one of its main object.
- The Applicant shall not engage in any business other than Web Aggregation of Insurance Products or Insurance Broking and the Applicant shall have all the necessary infrastructure viz. adequate office space, equipment, trained and dedicated manpower and IT infrastructure to effectively discharge its business activities.
- The Applicant shall submit an undertaking to the effect that –
(a) it does not have a referral arrangement with any of the Insurer;
(b)it does not have conflict of interest of any kind between the interests of policyholders and the business of its group entities engaged in insurance intermediation.
C )it has a designated website hosted on a sever based in India for carrying out IWA business;
(d)it shall always maintain the Capital and Net Worth requirements as specified in regulation 8 of these regulations to the satisfaction of Authority;
(e)it shall, at all times during the currency of the certificate of registration, comply with the requirements specified in regulation 6 of these regulations.
The Authority on being satisfied that the Applicant fulfill the eligibility as specified above shall at first instance issue an in-principle approval to the Applicant for compliance with requirements viz, minimum capital infusion, training requirements of principal officer, professional indemnity policy and such other requirements as may be deemed necessary by Authority for issuance of Certificate within a period of forty five (45) days from the date of such in-principle approval.
Provided that if an applicant is not able to comply with such requirements within the specified period of forty-five (45) days, it can, before expiry of such period, but at least seven (7) days in advance, shall make an application, for extension of time, to the Chairperson of the Authority.
Provided further that on receipt of the application, the Chairperson of the Authority, shall examine it and communicate the decision thereon, in writing;
Provided also that no extension of time shall be granted by the Chairperson of the Authority beyond ninety (90) days from the date of such in-principal approval.
The Certificate of Registration shall be valid for a period of three (3) years from the date of its issuance unless revoked or cancelled by the Authority.
Provided that the certificate granted for the first time by the Authority for setting up branch office in an IFSC, shall be valid till the expiry of the certificate of registration issued by the IRDAI and thereafter for a period co-terminus with the expiry of the certificate of registration issued by the IRDAI.
