Insurance Web Aggregator License

An Insurance Web Aggregator is an IRDAI-registered intermediary that maintains an online portal or mobile application to compile, display, and compare the features, premiums, and terms of various insurance policies offered by different insurance companies.

The license is exclusively issued by the Insurance Regulatory and Development Authority of India (IRDAI) under the IRDAI (Insurance Web Aggregators) Regulations, 2017.

An applicant company or Limited Liability Partnership (LLP) must have a minimum paid-up capital or capital contribution of ₹25 Lakh. For companies, this must be in the form of equity shares.

Only two legal structures are eligible to apply:

• A company incorporated under the Companies Act, 2013 (or 1956).

• A Limited Liability Partnership (LLP) registered under the LLP Act, 2008, where all partners are Indian residents.

No. To prevent conflicts of interest and ensure unbiased product comparison, the IRDAI enforces a strict “No Dual Registration” policy. An existing broker, corporate agent, or insurance marketing firm cannot hold a Web Aggregator license simultaneously.

The Principal Officer is a key managerial personnel responsible for the day-to-day operations and regulatory compliance of the aggregator. They must possess specific educational qualifications, undergo mandatory IRDAI training, and clear the prescribed certification exam.

Once granted by the IRDAI, the Certificate of Registration is valid for a period of three years from the date of issue, unless it is suspended or canceled by the authority.

The renewal application must be submitted to the IRDAI at least 30 days prior to the date of expiry of the current license to ensure uninterrupted business operations.

Licensed web aggregators can generate revenue through:

• Lead Transmission Fees: Charges for sharing valid customer leads with insurance companies.

• Solicitation Commissions: Commissions on policies directly sold or processed through their online portal.

• Outsourcing/Reward Fees: Flat fees for permitted back-office or digital marketing services as defined by IRDAI.

No. The IRDAI strictly prohibits web aggregators from displaying any arbitrary ratings, product rankings, star scales, or commercial endorsements on their portals. The comparison must be strictly neutral, factual, and based solely on policy features and premiums.

Yes. As part of the evaluation process, the IRDAI may authorize an official panel to conduct an on-site physical inspection of the applicant’s registered office, IT servers, and operational setup to verify the information submitted in the application.

The net worth of a licensed Insurance Web Aggregator must never fall below 100% of its minimum capital requirement (i.e., ₹25 Lakh) at any point during its operations.

Any employee involved in telemarketing or digital solicitation must be designated as an Authorized Verifier. They must complete the IRDAI-mandated training and pass the relevant examination before interacting with prospects.

Applicants must pay a non-refundable application processing fee of ₹10,000 (plus applicable GST) to the IRDAI along with the submission of Form A.

No. The main object clause of the entity must be exclusively dedicated to insurance web aggregation. Operating a mixed financial marketplace (selling loans, mutual funds, and stocks alongside insurance) on the registered portal is not permitted under this specific license.

If the net worth falls below ₹25 Lakh, the entity must immediately report the deficiency to the IRDAI. Failure to restore the net worth within the timeline granted by the authority can lead to the suspension or cancellation of the registration.

A Lead Management System is a mandatory, automated software framework used by the aggregator to record, track, and securely transmit consumer interest data (leads) to chosen insurance companies without manual or unauthorized tampering.

Operating an unapproved insurance web aggregation portal or soliciting insurance leads without an IRDAI Certificate of Registration is a severe legal violation. It attracts heavy compounding financial penalties, a permanent ban on the promoters, and potential criminal prosecution.