ISNP Guidelines as per IRDAI
With growing digitization and internet users, IRDAI has recognized the importance of leveraging online resources to promote, sell, and service insurance products. Consequently, the authority has joined forces with key stakeholders including M/s NSDL Database Management Limited, M/s Central, Insurance Repository Limited, M/s Karvy Insurance Repository Limited, and M/s CAMS Repository Services Limited to bring the concept of ISNP (Insurance Self Network Platform) into life. ISNP has transformed the way insurance products are marketed and sold. Policybazzar, Coverfox, and Bankbazzar are shining examples of how ISNPs work. Entities seeking to become an ISNP require IRDAI’s approval, which involves adhering to various norms. Let’s break down ISNP guidelines, including paperwork and process.
What is ISNP and What Roles Does it Serve?
ISNP (Insurance Self Network Platform) is a digitized platform that accommodates several web aggregators promoting and selling insurance products, giving policyholders a range of options to choose from. ISNP caters a number of tasks with utmost precision and agility. By combining robust IT resources with skilled manpower and cutting-edge encryption, ISNP serves as a single window for a number of endevours, including;
- Customer onboarding
- Document verification and storage
- Claim processing
- Collection of renewal premiums and remittance to insurers
- Alternation or transfer of Insurance policies
- Alternation of nominee
- Fund Switching/ Premium Redirection
- Loan Against Policy
- Declarations Update
- Extension of Cover
- Revival / Cancellation of Policy
- Risk analysis
- Estimation of the insured amount
- Customer support
ISNP cannot operate in India unless it has all the certifications in place, including company registration and an IRDAI license.
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Understanding ISNP Guidelines When Starting Out
Adherence to the given ISNP Guidelines is mandatory when starting out:
- The applicant firm must be registered either as a LLP or an entity falling under the Companies Act 2013.
- The presence of professionals like principal officers is vital.
- Fulfillment of norms cited in the form ISNP-1 is paramount.
- The presence of a robust and updated web/mobile platform is a must for serving ISNP endevours.
- The web portal intending to serve as ISNP should ensure the required level of data safety and process automation.
- Other key ISNP guidelines include onboarding of insurance intermediaries only if the applicant is an insurer. Likewise, if the applicant is an insurance intermediary, no partnership with stakeholders is permissible except for insurers.
- Unregistered insurers or insurance intermediaries cannot apply for IRDAI approval.
Understanding the Significance of EIA in ISNP Guidelines
ISNP leverages EIA capabilities to keep the policyholder’s account and document safe and intact. EIA stands for E-insurance Account, which enables login and access to policy-related documents. Policyholders must have EIA before transacting on ISNP. The EIA services are enabled on ISNPs by one of the IRDAI-recognized agencies, viz.
- NSDL Database Management Limited
- Central Insurance Repository Limited
- Karvy Insurance Repository Limited
- CAMS Repository Services Limited.
All the ISNPs, either run by an insurer or intermediary, must provide open EIA within 15 days of the policy issuance.
An Overview of ISNP Guidelines Concerning Paperwork
Paperwork plays a vital role in the ISNP registration process as it reinforces legal gravity and compliance. Ensure to keep the following document ready and handy before leaping into the registration process.
- MOA and AOA
- Certificate of Incorporation
- Details of directors and shareholders
- Description of business activities
- Details of management personnel
- Measures to prevent unauthorized access
- Disaster recovery procedures
- Encryption protocols for customer data protection
- Management Information System (MIS) details for Internet insurance operations
- CERT-In certification for the e-commerce portal
- Source code of the e-commerce platform
Comprehending ISNP Guidelines Concerning the Registration Process
As per the ISNP Guidelines for registration, the applicant should abide by the following steps:
- Head to the IRDAI portal and secure the necessary credentials
- Use these credentials to get access to the prescribed form viz. ISNP-1
- Fill out the form as advised with valid information.
- Attached paperwork as cited in the erstwhile section. Be watchful of the format while uploading the dossiers.
- Pay the recommended fee to mark the end of the filing process
- Upon application submission, the IRDAI’s concerned department shall vet the application and documents for accuracy and compliance. Any issue or non-compliance identified during the inspection shall be with the applicant for resolution.
- Upon successful inspection, the authority shall grant the certificate of registration, enabling the applicant to pursue their operation within the purview of IRDAI’s norms.
A Snapshot of ISNP Guidelines Concerning Operational Endevours
Insurers/insurance intermediaries running the ISNP must abide by the given :
compliance or ISNP guidelines for operation.
- Every ISNP must review controls, procedures, systems, and safeguards to ensure compliance. Such undertaking should be served by an external certified information system auditor (aka CISA) or Chartered Accountants (CA) having a diploma in information system audit (DISA).
- Any non-compliance that could lead to financial damage to policyholders should be reported to the authorities alongside a resolution.
- Ensure that the person overseeing ISNP has an apt skill and industry-specific qualifications.
- All the resources, including sitemaps, policies, processes, and navigations, that contribute to the portal operation, should remain available 24×7 to the concerned authority for vetting.
- An Insurance Self Network Platform must accommodate only those market participants certified by the competent authority.
- Solicitation of product features not certified by the authority is not allowed.
- A comprehensive adherence to the code of conduct is paramount, be it a matter of providing information to policyholders, submitting returns, or assisting authority during inspection.
- Implementation of fraud detection policy and process, approved by the BODs, is vital.
- Proper documentation, within the purview of IRDAI norms, spanning all the operations, including after-sale support is mandatory
- Any inference caused by the government or any competent body shall be shared with the governing authority.
- Submission of an annual compliance certificate is mandatory.
Conclusion
Starting an ISNP is a bold step toward a promising and rewarding domain, which is expected to grow exponentially with time. However, there is a huge difference between starting and running an Insurance Self Network Platform. Owing to its compliance-intensive nature, running an ISNP can be overwhelming as well as complicated. That’s where a support of a seasoned partner like Adviso can make a game-changing difference. From comprehending regulatory norms to streamlining operations as per IRDAI, Adviso has your back no matter the requirement or complication.
Also Read: Insurance Self Network Platform (ISNP): Everything You Need To Know
