Under what conditions imposed by IRDAI, can insurance products be marketed by web aggregators ? Discuss.

A Web Aggregator is an online seller of insurance products - allowed to sell insurance products of multiple insurance companies. Example: Policy Bazaar. They are permitted to do only online sales, though telephonic solicitation is also allowed. Since the Web Aggregator aggregates the insurance products of multiple insurance companies through internet (Web), they are called Web Aggregators. Web Aggregator is a company registered under the Companies Act and approved by IRDAI which maintains or owns a website and provides information on insurance products of different insurers. Following are some of the conditions imposed by IRDAI on the Web Aggregators for marketing of insurance products: A Web Aggregator is a Company having its own website and providing insurance products. Product information of various insurers with price comparisons. leads to Insurers from customers who access the website. No ranking, rating or endorsement of any insurer allowed. Minimum capital & Net worth of ₹ 25 lakhs and cannot act as agent, broker, TPA surveyor or be their related party. All Web Aggregators shall get approval from IRDA valid for 3 years. An insurance broker who provides product comparisons in his website shall also follow the web aggregator guidelines pertaining to display of product comparisons on website. Telemarketing by Web Aggregators through Authorised Verifiers who have to undergo IRDAI training and examination - telephone solicitations allowed only for leads generated on the Web aggregator site. Product restriction over telemarketing mode - not more than ₹ 1,50,000 of annualised premium. Customer visits the website of the aggregator selects the product category, e.g. Endowment, Whole Life, Term, ULIPs etc. Once the visitor selects the product category, the website will ask for his basic details such as age, health and personal details, term, sum assured required etc. Once the visitor gives the details, the product comparison chart is displayed, along with the default underwriting requirements such as medical examinations required, exclusions, limits and other conditions and key features of the product chosen. Visitor may select the insurer with whom his information can be shared as a lead, else the Web Aggregator can transmit the lead to not more than 3 insurers (life or non-life as the case may be). Insurer can in turn pass on the lead to a Corporate Agent or an Authorised Person of a Telemarketer or an Insurance Broker or to their own employees or Web Aggregator can use distance marketing for closure of sale. Visitor is either called over phone or visited by person closing the sale (either authorised employee of Web Aggregator or Insurer or Broker) and the solicitation is completed. Policies procured by Web Aggregators to be commensurate with their resources and number of Authorised verifiers. A Web Aggregator is allowed to provide product comparisons as well as solicit insurance business - entity licensed cannot do any other business, including corporate agency, broking. Company or a partnership firm can act as Web Aggregator after procuring IRDA licence with a networth of ₹ 25 lakhs to be maintained at all times - foreign equity restricted to 26% Principal Officer and the Employees who solicit insurance business should have undergone 50 hours training and passed the examination conducted by National Insurance Academy, Pune. Professional indemnity insurance 3 times the remuneration subject to a minimum of ₹ 10 lakhs mandatory. I Web Aggregator shall ensure that their systems comply with the generally accepted information security standards. Ratings or rankings or endorsements of products prohibited while doing product comparisons. Customer's lead shall be shared with the insurer of customer's choice. If customer has no choice of a specific insurer, the lead can be shared with up to 3 insurers by the Web Aggregator. Once a policy is sold out of the lead provided by insurer, it shall be fed into the Lead management system ('LMS') by the concerned insurer - yearly audit of the LMS prescribed. Board approved policy for comparison and distribution of products.