RBI Guidelines for E-Commerce ISNPs

  • June 20, 2023
  • Dushyant Sharma
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The Insurance Self-network Platform in e-commerce is gaining popularity among buyers and sellers. In the insurance market, many companies are looking for an online platform to promote their goods. To state the solution, the Reserve Bank of India has announced the guidelines for insurance companies that want to use an e-commerce platform.

As per a study, 65% of total consumers want to buy an insurance policy online. They prefer insurance websites, and e-commerce platforms to purchase insurance policies. It is stated that online new digital customers can be reached which eventually increases the business. 

Insurance self-network platforms are using e-commerce to target the major market by shifting to online from offline methods. The Reserve Bank of India has issued the guidelines for ISNP for the proper ongoing of the business. 


Guidelines for ISNP to Setup an E-commerce Platform

The applicant who wants to set up an ISNP for undertaking Insurance e-commerce activities in India must comply with the following requirements all the time:

Online Offering

  • The applicant ISNP can be a regular internet website, mobile app, or both.
  • The applicant ISNP only includes those market participants that have the granted certificate of registration by the Authority.
  • In case, if any unregistered market participant is enrolled in the ISNP, then it will be viewed as a violation which may lead to the cancellation of givenAuthority’s permission.


Internet Website and Mobile App

The following information must be displayed on the website:

  • Applicant's legal name and geographical address
  • Applicant’s telephone and electronic contact information
  • Certificate of registration number and its validity
  • Category of certificate of registration
  • Contact information and information on how policyholders can file a complaint with a link to Authority’s website.
  • Any other relevant information



  • Only approved features of the product shall disclose on the ISNP.
  • Any information which is misleading to the policyholders or not approved by the authority should not be shown.
  • The products which are posted on the website will be up to date and presents the right picture of the website.
  • The registered insurer ISNP must display the products and not display the product of any other registered insurer until it's a combi-products.
  • The registered insurance intermediary may display the products of insurers. Also, they do not promise to the insurer for increasing sales or should not work in favor of anyone insurer.


Information Sharing with Prospect

The ISNP must put the attention of the applicant to the following information in clear and simple language:

  • The type of customer for which the product is made.
  • Main characteristics of the product
  • Options and coverage are provided by the product.
  • Exclusions and limitations associated with the product
  • The total premium and other charges that consumers have to pay or any other amount, the basis of calculating these amounts must be clarified.
  • The procedure, duration for cancellation, and time limit on the validity must be provided.



  • The pricing of the product shall be decided by the insurer and the pricing of the product should comply with the product approved by the Authority.
  • The discount should be provided on the ISNP while selling as specified by the Authority.
  • Prices of products offered by ISNP must be the same for the different products.


Commission or Remuneration to the ISNP

  • Any product which is sold through the ISNP must be governed by IRDA Regulations, 2016. 
  • No fees, payments, or charges should be paid or shared between the market participants for using ISNP.


Compliance with KYC/ AML norms

  • The ISNP will be responsible for the compliances issued by the Authority or any other statutory authority for compliance with KYC/AML matters.
  • Compliance with the KYC/AMC guidelines must include the following:
  • The e-KYC facility offered by UIDAI
  • The e-PAN facility offered by NSDL
  • Valid KYC document permitted under AML circular no IRDA/SDD/GDL/ CIR, or
  • Any other facility recognized by the authority


Payment of Premium

  • The market participants must ensure that the provision of Section 64VB(1) of the Act is complied with at all the times
  • The payment of premiums for online sales must be done by credit card/ debit card/ net banking/ e-wallet or any other electronic mode. 
  • The applicant can facilitate payment of premiums through a cheque/ demand draft.
  • The ISNP may accept cash payments only on the condition that the insurer's system gives an immediate acknowledgment on either the policyholder's email address or mobile phone number of having received the premium. 
  • The agreements entered into by the insurers with the ISNP for integrating their web portals for the sale of products or receipt of premiums online shall not be in any way detrimental to the interests of the policyholders



In last, it can be concluded that the insurance applicants registered through e-commerce are the safest way for the Authorities to keep track of them. The IRDA License Portal can monitor and audit the activities of ISNP regularly.

However, the authority can keep track of the business through the license also. At Registrationwala, we assist businesses to get ISNP setup permission, and for that, we provide services like:

  • Document drafting
  • Application filing
  • Department follow up

So, if you want to start your insurance e-commerce portal, then reach out to us for getting permission or in case of any queries.




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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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