IRDA proposes to increase web aggregators' business limit

Limit of premium per risk/per life of products sold on the web aggregator could be increased from Rs 50,000 to Rs 1.5 lakhs

The Insurance Regulatory and Development Authority of India has proposed to increase the limit of insurance business done by web aggregators to Rs 1.5 lakh for making them a more remunerative distribution channel, an IRDA official said on Saturday.

"Web aggregators have been in the insurance business for the last 5-6 years. They were permitted to do insurance business up to Rs 50,000. The limit has been increased to Rs 1.5 lakh to make them a more remunerative distribution channel," said IRDA Member (Finance and Investment) V.R. Iyer.

"They will be allowed to sell more products including ULIPs while they were not allowed to sell ULIPs earlier," she said on the sidelines of the Insurance Summit organised by the Indian Chamber of Commerce.

IRDA issued proposed regulations – Insurance Regulatory and Development Authority of India (Insurance Web-Aggregator) Regulations, 2016 – on Tuesday seeking suggestions from all stakeholders.

The proposed regulation said, "Limit of premium per risk/per life of products sold on the web aggregator being revised from Rs 50,000 to Rs 1.5 lakhs."

The display of the product will not include the price alone. The web aggregators should also display the important features, terms, conditions, exclusions, benefits along with showing the price comparison of products offering by insurers, she said.