Insurance Broker License
Apply today’s simplified process for online submission.
And you can Begin Insurance Broking business within 90 Days….!!!
That includes :
Approval from IRDA
Insurance broker Company registration
Advisory on Work Flow and SOP
Business & Operational plan for Next 5 Years
End to End Follow-up with IRDA
Comprehensive USA market entry strategy
Insurance Broker License
Insurance Broker License
In India IRDA i.e. e Insurance Regulatory and Development Authority governs and issues Insurance Broker License & its services. For Insurance Broker license the ” Insurance Regulatory and Development Authority Act, 1999 with the Authority in consultation and the Insurance Advisory Committee”, makes the rules & regulations. The purpose of establishing this regulation is to watch & supervise insurance brokers. The insurance brokes suggests people regarding their insurance needs and after than guide them to pick the right insurance product for them. The Insurance Brokers act as the middle person among the insurance company and the people searching for buying insurance policies. They have a deep knowledge of the insurance-related laws & products.
In 2018, an updated version of IRDA (Insurance Broker) Regulations, 2018 were circulated by the IRDA. As per these laws, Insurance Broker License can be done in any of the following sections:
- Direct Insurance Broker License – Capital required Rs. 75 Lakh
- Composite Insurance Broker License – Capital required Rs. 5 Crore
- Reinsurance broker License – Capital required Rs. 4 Crore
Who is Insurance Broker?
An insurance broker is a company/business or person registered as an advisor of insurance or qualified people or firm which acts by its partners/directors or employees with expert knowledge of insurance-based laws. Insurance brokers lead people to their insurance demands. Moreover, they offer expert services to their customers. Acts as a mediator among a person and an insurance company asking to buy an insurance policy.
An insurance broker can be classified in there 3 Types –
Direct Insurance Broker– solicitation and acquisition of the business of insurance and allows its client to buy an insurance policy from its website or Computer software. And gets commission charges from the insurance company whose policy has been sold. You can have a full see all the function of Direct insurance broker
Composite Insurance Broker – Is an insurance agent and operates a valid license to give insurance-related services for both lives & general insurance. The composite insurance broker licensing process is highly selective by the authority.
Reinsurance Broker – A company that can fix reinsurance on behalf of an insurance company.
Who can apply for Insurance Broker License?
According to IRDAI Regulations, the insurance broker license candidates can be anyone from the following :
Company registered under the Companies Act, 2013
Any registered co-operative society made under provisions of Co-operative Societies Act, 1912, or any similar law
Limited Liability Partnership ( LLP)registered under the LLP Act, 2008
Any other person approved by the Authority
Note: If the candidate of Insurance Broker License application is a registered LLP then none of the following can be a partner of the same;
Foreign LLP enrolled under foreign country laws
Person resident outside India.
Requirements for Insurance Broker License
Procedure to get Insurance Broker License
Documents required to apply for insurance broker license
The following are the documents to be submitted as mentioned in Form C of Schedule I of the IRDA Regulations :
Insurance Broker License application & other mandatory documents to be submitted in Form B.
Photocopy of the MOA & AOA of the company.
The applicant should submit information about a Principal officer such as qualifications, training compliance, and other criteria as mentioned in Form G of Schedule 1.
A written declaration of the Principal officer along with the directors/partners and required managers, confirming that they don’t abide by any disqualifications as mentioned in Section 42D of the Act.
Complete details of every director/partner, promoter, and important managerial personnel.
Current bank account details.
List of a minimum of two qualified brokers and their qualifications.
List of all shareholders of the applicant company; present as well as proposed. If the shareholder is a company, provide the Board Resolution passed by the company in investing and promoting the applicant company.
Information regarding the Principal Bankers and the statutory auditors.
Balance sheet of the company.
Details of infrastructure like IT infra, tools, office area, & the workforce.
Other documents as required
Detailed Steps for Apply for Insurance Broker License
Once you have gathered all the documents required for Insurance Broker license, you can follow the below steps to for the registration process:
Insurance Broker License fee
Application for Insurance Broker Licenses must be submitted along with the requisite fees as defined in Schedule I – Form D of these regulations.
Insurance broker License Validity & Renewal
Insurance broker Certificate of Registration is allotted for three years from the date of such issuance. The certified insurance broker is required to apply for the renewal of the Insurance Broker License at least 1 month before the expiry of these three years of registration. Otherwise, his/her license gets expired and they have to pay penalties. And more delays will also take them to the consequence of issuing a fresh license.
Checklists for Insurance Broker Registration
You must satisfy the following guidelines for obtaining Insurance Broker Registration:
An entity must have the word Broking or Broker in its name
MOA must include the insurance broking as its principal aim
Whether the company satisfies the least capital requirement as presented in the regulations
It must not hold any foreign capital which exceeds 26% of the total paid-up capital
If the fixed deposit of 20% of first capital is paid in the certified bank
The principal officer must keep the fair qualification, should have passed the brokers’ exam, and maintain the required training
The company must engage a minimum of 2 persons with the obligatory qualification and training
The company has the needed infrastructure and well-trained workforce to run the business of insurance broking
The persons involved in securing insurance business are qualified and trained
Frequently Asked Questions
• Company registered under the Companies Act, 2013
• Registered co-operative society made under provisions of Co-operative Societies Act, 1912
• LLP registered under the LLP Act, 2008
• Any other person approved by the Authority
2) Examine the Application
3) Submission of the documents
4) Issuance of in-principle approval
5) Issue of Certificate of Registration in Form J
• 50,000 for Reinsurance Broker; and
• 75,000 for Composition Broker.
• 1,00,000 for Direct Broker;
• 3,00,000 for Reinsurance Broker; and
• 5,00,000 for Composite Broker
3. Proof of payment of fees.
4. Copy of MOA & AOA
5. Bank account details
6. Decleration Form
For more details contact or experts on +91 8750008881
• If the capital pay holds any foreign capital, it should not exceed 26% of the total paid-up capital.
• The principal officer must have a basic qualification, undergone training, and cleared the broker’s exam.
• The company must include at least 2 persons with enough qualifications and training.
• Insurance broking must be the chief purpose of the Memorandum of Association.