Section 30 in Insurance Regulatory and Development Authority of India (Insurance Web Aggregators) Regulations, 2017
30. Remuneration to the Insurance Web Aggregator.
(a)The payment of remuneration to or receipt of remuneration by an Insurance Web Aggregator shall be governed by the regulations notified in this behalf by the Authority.(b)Remuneration in any form shall be payable to Insurance Web Aggregators by insurers in compliance with the following provisions:i. No charges shall be paid for transmission of leads by the Insurance Web Aggregator to the Insurer.ii. Leads which are converted into sale of insurance policies will entitle the Insurance Web Aggregator to earn remuneration as applicable to insurance intermediaries.iii. A flat fee of not exceeding Fifty thousand per year towards each product displayed by the Insurance Web Aggregator in the comparison charts of its web site subject to an overall ceiling as specified under the rewards portion specified in the Insurance Regulatory and Development Authority of India (Payment of Commission or Remuneration or reward to insurance agents and insurance intermediaries) Regulations, 2016 issued by the Authority.iv. Insurance Web Aggregator can undertake Outsourcing functions to provide 'Insurance Services' as per Form U (Insurance outsourcing services that can be undertaken by Insurance Web Aggregators) of Schedule VII of these regulations in respect of policies procured through them. In such instances, the insurer may pay the Insurance Web Aggregators, reasonable service charges at mutually agreed rates fixed in the service agreements with the Insurance Web Aggregators.(c)An Insurance Web Aggregator shall not be denied payment of remuneration on the grounds that insurance policies being sourced through it are direct online sales of insurance policies by the insurance companies, unless the product approved under the product approval norms is a zero commission rate product.Explanation. - The insurer, if he so desires, may however for a zero commissions product make payment under the reward portion of Insurance Regulatory and Development Authority of India (Payment of Commission or Remuneration or reward to insurance agents and insurance intermediaries) Regulations, 2016 as per the Board approved policy.(d)All existing approved products, that the Insurer is desirous of selling through Web Aggregator, and for which the Web Aggregator is not specifically mentioned as a distribution channel in File Use application of the product, may be sold by the Web Aggregator without there being any requirement to modify the existing approved product under the product approval norms.Provided that for such existing products, the Appointed Actuary shall certify that the commission/ remuneration being paid to the Web Aggregator are within the commission/remuneration limits already approved by IRDAI and that the premium rates are workable and sound.(e)An Insurance Web Aggregator shall not offer any rebate or discount or any other inducement to the prospect which will be a violation of Section 41 of the Insurance Act, 1938.
