What is ISNP and how it influences Insurance Business?
In order to expand the Insurance business rapidly and to lower the cost of transacting insurance policies, Insurance Regulatory and Development Authority of India (IRDAI) is facilitating the idea of promoting E-commerce in the insurance space.
According to a report made by Google India, by the year of 2020, more than 200 million people in India will prefer to purchase their policies and renewals online. Thus, insurance brokers, firms, and corporate agents can sell and service policies via E-commerce, with the permission of IRDAI.
This article put forth everything you need to know about to get started with Insurance Self Network Platform (ISNP).
So, what is an Insurance Self Network Platform?
Insurance Self Network Platform is an electronic platform set up to conduct insurance e-commerce activities with the permission of IRDAI authority. It helps brokers or firms to sell policies in a cost efficient manner. Also, it paves way to reach a wider number of people.
Who can own an ISNP?
According to IRDAI regulations, only insurers or intermediaries or any other entities registered or recognized by the IRDAI can register to setup an ISNP. They must have a well-established online platform to conduct insurance e-commerce business. Insurance agents are not allowed to own an ISNP but they are permitted to use insurer’s ISNP. Being said that, the insurer is responsible for compliance of the guidelines required in the name of clients.
The applicant should satisfy the following requirements to set up an ISNP.
- ISNP can be set up in any forms such as website, mobile app, or even both.
- If an applicant is an insurer, he shall enroll only insurance intermediaries on its ISNP and no other insurer. If an applicant is an insurance intermediary, he can enroll only insurers and no other insurance intermediary or an agent.
- If an applicant enrolls any unregistered insurer or insurance intermediary, the authority might even cancel the permission given to the applicant.
What is the registration procedure to set up an ISNP?
- The applicant should make an application to obtain prior permission for establishing ISNP as mentioned in Form ISNP-1. Also, ensure to submit the necessary fees and taxes.
- While analyzing the application form, the authority might ask for additional details or clarification on the information attached.
- The authority can reject the application if the application is not complete or followed by the registration guidelines, only after hearing from the applicant. Once the authority receives the application, the application should be decided within 60 days from the date of submission.
- Once the notice is received, the applicant has to complete the application within 15 days.
- After due analysis, if the application satisfies all the provisions and regulations of the Insurance Act, 1938, the IRDAI Act, 1999 and if the authority is convinced, the registration will be granted.
Information to be disclosed in your ISNP:
The applicant’s ISNP should display the below-said applicant’s information on its website.
- Applicant’s legal name
- Geographical address
- Telephone and electronic contact information
- Certification of registration number and its validity
- Category of certificate of registration of the applicant
- Contact details and information on how customers can file a complaint that includes a link to the authority’s website.
- Other relevant information of the applicant.
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