Insurance Regulatory and Development Authority of India has issued the Guidelines on lnsurance e-commerce to promote e-commerce in insurance space

Insurance Regulatory and Development Authority of India has issued the Guidelines on lnsurance e-commerce to promote e-commerce in insurance space

March 20, 2017 Insurance 0

The Insurance Regulatory and Development Authority of India on 9th March 2017(“IRDA”) has issued the Guidelines on lnsurance e-commerce (“e-commerce Guidelines”) under Section 34 of the lnsurance Act, 1938 and Section 14 of the IRDA Act, 1999.

IRDA as a part of its developmental mandate has issued the e-commerce Guidelines to promote e-commerce in insurance space, aiming to lower the cost of transacting insurance business, bringing higher efficiencies and greater reach by providing lnsurance Self-Networks as a regular internet web-site (desktop or mobile version) or, mobile app or, both.

Please find below the highlights of the e-commerce Guidelines:

  1. An Applicant including a registered insurer or an insurance intermediary or any other person recognized by the IRDA intending to establish an lnsurance Self-Network (“ISNP”) needs to make an application in Form – ISNP – 1.
  2. Market Participants on lnsurance Self-Network Platform includes Insurers registered by the Authority, lnsurance lntermediaries, lnsurance Agents appointed by insurers registered by the IRDA.
  3. Existing – lnsurers and lnsurance lntermediaries, who have already set-up their own ISNP’s or insurance portals for selling and servicing insurance products are allowed to operate the platforms / portals, provided they comply with the requirements of e-commerce Guidelines within a period of three months and obtain necessary permission from the IRDA.
  4. The Chief Executive Officer and the compliance officer of applicant’s ISNP  is required to file with the IRDA, annually a compliance certificate certifying that the information displayed on the webs-site, the processes, procedures and any other mechanism by whatever name called, displayed and implemented on the platform are in compliance to the e-commerce Guidelines at all times.
  5. Every applicant’s ISNP is required to provide details of procedures, processes and timelines for pre-sales solicitation of insurance policies for certain activities.
  6. The Applicant’s ISNP is responsible to comply with the KYC/ AML guidelines issued by the IRDA.
  7. The Applicant’s ISNP is mandated to have a pro-active fraud detection policy for the insurance e-commerce activities which is approved by its Board of Directors.
  8. Every Applicant is required to follow a standard operating procedure for its lT and non-lT processes and is required to keep the same ready for inspection by the IRDA at all times, failing which can invite penal action on part of the IRDA.

Source: IRDA

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