IRDAI: Insurance Self-Network Platform Code of Conduct

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IRDAI: Insurance Self-Network Platform Code of Conduct

Insurance Self Network Platform simply an ISNP, is an e-commerce portal dedicated to selling insurance products and services in India. E-commerce websites sell everything that a person needs to satisfy almost all his wants. All kinds of products and services are available on e-commerce websites these days. It has better reach with the customers, doesn't require an in-person visit to the stores and incurs a very low cost of transactions. So to make a sale for insurance services online, the IRDAI, i.e., Insurance Regulatory Development Authority of India, has provided the registration of the Insurance e-Commerce Platform and its regulation on the internet.

Here we will mention the required code of conduct put forth by the IRDAI, which every ISNP should comply with. These obligations are issued by the Authority to ascertain that an ISNP works according to the set regulations in the market. Read the article to know more.

Dos of an ISNP

The to-be registered ISNP or an existing ISNP must undertake the following regulations: 

• An ISNP must summarise the information provided in the proposal form to the prospect in an electronic form before a contract gets concluded.

• An ISNP must provide a copy of the insurance policy in electronic format to the policyholder, allowing reproduction and storage.

• An ISNP must provide the policyholder with the post-sales servicing of insurance policies in electronic format.

• An ISNP must furnish the information required by the Authority relating to the insurance business.

• An ISNP must submit periodical returns as directed by the Authority.

• An ISNP must cooperate in any inquiry conducted by the Authority.

• Or any other requirement by the Authority.

Don'ts of an ISNP

The to-be registered ISNP, or an existing ISNP, must forbid itself from the following practices: 

• An ISNP must not conduct business in a manner prejudicial to the interests of the policyholders.

• An ISNP must not indulge in manipulating the insurance business.

• An ISNP must not indulge in unfair trade practices in the insurance market.

• An ISNP must not accept redirected internet traffic references from other than market participants and to the extent permitted.

• An ISNP must not default in complying with or acts in contravention of any IRDA Act of 1999 requirement or any rule or regulation, an order made or any direction issued.

• An ISNP must not default in complying with any directions issued by the Authority.

• An ISNP must not offer any discounts, incentives or payments other than

those approved by the Authority.

• An ISNP must not allow cashback, promotional incentives or payments by

payment gateway companies or other entities.

• An ISNP must not default in complying with or act in contravention of any requirement of the Foreign Exchange Management Act of 1999 or the Prevention of Money Laundering Act of 2002.

• Or any other requirement by the Authority.

Obligations to be observed by an ISNP

Every ISNP must observe the following obligations:

• An ISNP must ensure that the record of conduct and performance of the persons in management is satisfactory or more.

• The ISNP must be protected against unauthorized access, alteration, destruction, disclosure, or dissemination of records and data.

• The ISNP must ensure that the network through which electronic means of communications are established amongst the market participants is secure against unauthorized access.

• An ISNP must have standard transmission and encryption formats amongst the market participants on the platform to protect the information from any disruption or hacking.

• An ISNP must establish adequate procedures and facilities to ensure that it is protected against loss or destruction and that arrangements have been made for disaster recovery at a location different from the existing place.

• An ISNP must have a mechanism to ensure that the interests of the persons buying or other services under insurance policies, including their privacy on the ISNP, are adequately protected.

• An ISNP must list the procedures, processes and timelines for pre-sales solicitation and post-sales servicing of insurance policies.

• An ISNP must have a Management Information System supporting internet-based insurance business operations to realize a real-time connection with Insurance Core Systems and of ensuring effective isolation between other application systems of the insurers, avoiding the external transmission and spread of information security risks for insurers.

• An ISNP must have a robust firewall, intrusion detection, data encryption, disaster recovery and other information security management systems.

• An ISNP must have the website's domain name registered and with servers hosting them located within India.

• An ISNP must have a specialized internet insurance business administration equipped with appropriate professionals.

• An ISNP must have means available to ensure that the information displayed on the website, the processes, procedures and any other mechanism displayed and implemented on the platform are available at all times for verification and scrutiny.

Register for your ISNP with Registrationwala

For an unregistered ISNP or any existing ISNP, the IRDAI issues some regulations that must be observed to conduct their operations smoothly in the market within the realm of the law. To gain some assistance on the matter, you can always consult IRDA Registration experts at Registrationwala. We ensure the best of our services in the matters of ISNP and its registration with the authorities.

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