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IRDA has tightened rules for Web sites and portals vending insurance products.

Web sites and portals vending insurance products are also known as Web aggregators. They offer information on insurance products, including premiums and key features across companies and enable comparison. For every deal that is closed through them, they earn a commission from the insurance company.

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,” stated the circular issued by IRDA.

New changes as per IRDA draft

    Companies will need to have a minimum net worth of Rs 10 lakh.

    Registration with with IRDA required to become eligible for providing important information related to the insurance sector on their Web sites.

    Provide key features of insurance products across all insurers and all insurance genres, apart from updating premium amounts regularly.

    Ratings, rankings, endorsements or bestsellers of insurance products cannot be displayed.

    No comments on insurers or their products in their editorials or in any other location on their web sites will not be permitted.

    Web aggregator shall not accept any payment from Insurer / Insurance broker other than the remuneration specified in clause 10 of the guidelines.

    Web aggregator shall prominently display the names of insurers with whom it has an agreement to refer leads.

Commissions and remunerations

    Commission charged by web aggregators from insurance companies and brokers to be standardized.

    25 per cent of the total commission payable on the first-year premium in case of sale.

Lead referrals

    Customer lead can be given to maximum three insurance companies or one insurance broker.

    Remuneration of only Rs 10 for per lead.

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    Web aggregators should not carry advertisements or sponsored content