Owing to the rise of e commerce in India, industries that didn’t even take a look at the internet are not gravitating towards it. The IRDA understood this attraction and came up with many acts to put insurance policies and products on the online map. One of these acts was related to Insurance Self Networking Platform.
In this article, we dive deep into all the important facets of this platform that you need to know about.
An insurance self network platform is an electronic platform used to conduct ecommerce activity for insurance policies. One can’t start such a platform without the prior approval of Insurance Regulatory Development Authority of India. That’s why, it’s of primary importance that you know everything there is to know about the legal requirement to start this platform which is the ISNP registration.
E commerce has penetrated all the products and services that people currently avail. One of them is the insurance policies. With ISNP registration, the government’s objective is to:
1. Increase the competitiveness of the current insurance market
2. Reduce the transaction cost
3. Promote the insurance policies via digital medium
4. Make the insurance industry more efficient.
There are many who think that anyone can become the part of the insurance market by obtaining the ISNP registration. it’s misconception that exists because historically, eligibility criteria to start an insurance business only consisted of net worth requirements. However, since the formulation of many new laws in the insurance domain, the eligibility criteria has become more stringent.
IRDA that’s why, only issues the ISNP registration to the following business entities:
1. Insurers: The insurance companies
2. Insurance intermediaries: Insurance brokers
3. Other entities that are recognized by the IRDAI.
The last part is a bit vague. However, in extraordinary times, courts can decide that a particular business entity is worthy of starting an insurance self network platform.
If the applicant is one of the business entities mentioned in the previous section, following is the process they have to follow to obtain ISNP registration:1
1. ISNP 1: The application form to setup an Insurance Self Network Platform is ISNP-1. It’s filed online and the applicant has to upload the necessary documents at the time of filing
2. Analysis of the application: The IRDA, after receiving the application, starts to scrutinize it at a microscopic level. Every detail is double checked to ensure whether or not the application is fit to handle the scale of an ISNP enterprise.
3. If issues are found, the applicant will receive a notification from the IRDA with instructions about how to fix them and 15 days of time to do the same.
4. If the applicant fixes the aforementioned issues, and when the application is accepted, the IRDA issues an ISNP Registration with a unique ISNP ID.
Documents that the applicant needs to procure and submit to the IRDA for ISNP registration are as follows:
1. Certificate of incorporation of the company
2. Following insurance documents:
a. Insurance broker certificate is the applicant is registered with the IRDA as an insurance broker.
b. Corporate agent certificate is the applicant is registered with the IRDA as a corporate agent.
c. Certificate stating that IRDA has given the applicant authorization to apply for ISNP registration.
3. Net worth certificate of the applicant
4. Audited Balance sheet of the past five years
5. Order that states that the applicant meets the fit and proper criteria.
6. Declaration stating that there are no ongoing criminal proceedings against the applicant.
7. Cert IN certification for the ISNP platform
8. Source code of the platform
9. Back end access of the platform.
There are many things one must take into account to obtain ISNP registration. If you’re an aspirant, you can’t wait around for the license to come to you, you have to pursue it. That’s why Registrationwala is here to help. We can provide you all the services that you need to obtain ISNP Registration. For further details about ISNP Registration and other IRDA licenses, feel free to peruse through our blogs.