An insurance broker license is given to an expert and qualified person, or to a company acting through its directors, partners, or employees, who are knowledgeable about the laws governing insurance and have a sufficient understanding of insurance-related products. They alert people to the necessity for insurance. An insurance broker operates as a go-between for an insurance company and a customer looking to purchase an insurance policy, providing skilled sorts of assistance to both parties.
In Simple words Insurance Broker" refers to a person or a body corporate registered by the Authority as a direct broker, reinsurance broker, or composite broker, unless explicitly specified otherwise.
The Insurance Regulatory and Development Authority (IRDA) regulates and operates the Insurance Broker License. The IRDA is also in charge of the activities and operations of the Insurance Broker License.
An Insurance Broker is a person or a firm that is registered with the IRDA and provides insurance advice. It assists the consumer in obtaining insurance from a provider. An insurance broker is a skilled, expert, and professional person who works to give insurance coverage. An insurance broker acts as a liaison between the insurance business and the clients who are looking to purchase an insurance policy.
An insurance broker can be divided into three categories.
Insurance sales and acquisition allow its customers to purchase an insurance policy using its website or software while earning a fee from the insurance agency whose policy was sold.
It is a form of insurance broker license that, in exchange for payment or other considerations, arranges insurance or maybe reinsurance for its clients with reinsurers based in India or possibly elsewhere.
It is a form of insurance broker license that provides insurance for its clients with backup plans and additional reinsurers situated in India or potentially elsewhere in exchange for payment or fees.
Who is eligible to apply for an Insurance Broker License?
People that can apply for an Insurance Broker License in India include:
If the Insurance Broker License applicant is a registered LLP, none of the following can be a partner in the same.
Any other individual or company authorized to engage in activities related to an Insurance Broker
An applicant with the following minimum capital requirements may apply for registration as an insurance broker:
During the registration process for an Insurance Broker License, the Insurance Broker must have a minimum net worth of 50 Lakhs/200 Lakhs/250 Lakhs for Direct/Reinsurance/Composite Brokers
The net-worth shall not fall below: (during the period of certification)
Failure to comply with sub-regulation (1) will require the Insurance Broker to promptly reinstate their net worth to the limits outlined in sub-regulation (1) and report their compliance accordingly. The Insurance Broker must also submit a net worth certificate, duly certified by an Auditor, every six months to the Authority. This certificate ensures the Insurance Broker meets the net worth requirement following registration.
The applicant must deposit a specified amount with the designated bank. Make sure to deposit the amount before submitting the registration application and throughout the Insurance Broker License process.
Infrastructure and Office Space:
To qualify for an Insurance Broker License, the applicant must fulfill essential infrastructure requirements, including sufficient office space, equipment, trained manpower, and IT infrastructure. These facilities are necessary to efficiently carry out their insurance brokering activities.
The applicant must ensure the presence of at least two qualified individuals who have received proper training to function as insurance brokers. This requirement is essential to conduct the insurance broker business. If the applicant engages in insurance brokering for both life insurance and general insurance, the two qualified individuals must possess relevant qualifications in both domains.
Furthermore, the principal officer of the business must also possess the necessary qualifications. This includes holding the required certificate and possessing the skills essential for conducting insurance broker business.
The Principal Officer should be a key management executive, whole-time director, partner, or hold a similar position within the company, and possess the requisite experience for the role.
To receive an Insurance Broker License, all necessary documents and information must be submitted.
An applicant must submit the following documents in addition to the information specified in Form C of Schedule I of the IRDA (Insurance Broker) Regulations, 2018.
Compliance with these requirements ensures that the applicant meets the necessary criteria for obtaining an insurance broker license.
To obtain a certificate of registration as an insurance broker, the applicant must submit an application along with the specified fees mentioned in FORM D of Schedule I of the IRDAI (Insurance Brokers) Regulations. The application fees for each category of insurance broker are as follows:
In addition to the application fees, there are mandatory fees that must be paid to meet the registration requirements:
The mandatory fees are applicable for the entire validity period of the certificate of registration.
All fees must be paid through electronic means or by demand draft (DD) in favor of the Insurance Regulatory and Development Authority of India, located in Hyderabad.
The Certificate of Registration for an Insurance Brokers License, granted by the IRDAI, will remain valid for a period of three years from the date of issue, subject to any orders or regulations issued by the authority.
It is essential for an insurance broker to possess a valid certificate and be registered with the authority. Without a proper certificate and registration, they are not permitted to conduct insurance broker business. Compliance with these requirements ensures that insurance brokers operate within the legal framework and meet the necessary standards set by the regulatory authority.
For the renewal of an insurance broker license, the following guidelines must be followed:
We share the detailed and reasonable estimated costs, documents and prerequisites for the complete process before starting the process to ensure transparency.
Our team warrants hassle free documentation. We collect the necessary documents and share the relevant drafts to ensure a timely filing and delivery.
Upon collecting the necessary documents and information, we waste no time in preparation and filing of your application. development on your application is brought to your attention.
On successful completion of the case we share all the relevant documents electronically and physically along with an assurance to pay you back if something is wrong.
Registration for PF is compulsory for the companies / Organizations who employ 20 or more individuals. Also, a small organization that does not have the maximum Strength can register them voluntarily. The organization which grows to strength of 20 members
All the business which are operating in the market and want to get a legal existence and want avail benefits under MSME scheme can get register themselves under Micro, small and medium enterprise development act 2006 and as per government enacted act Micr
In 2017 parliament if India has passed the Goods and Service Tax act (GST act) and this act came into effect from 1st July 2017. It’s an indirect tax which replaced many other prevailing indirect taxes in India. It is all in one tax which includes a v
Startup means an entity, incorporated and registered in India which fulfils the following: Is any of the following Private Limited Company Public Limited Company Limited Liability Partnership Partnership Firm The annual turnover of the applicant s
RNI stands for the Registrar of Newspapers of India. RNI registration is a mandatory requirement to start a business of newspapers, magazines or journals in India. In India all the publishing industry is governed under the press and books registration act
In India, the real estate sector plays an important role in meeting the housing and infrastructure growth needs and demands. Although this sector has developed rapidly in recent years, it has been largely unregulated, given the absence of professionalism
An autonomous body created by the law under the Ministry of Labour and Employment, Government of India is known as Employee State Insurance Corporation. This scheme is started for Indian workers. The workers get a huge variety of medical, monetary and oth
NSIC stands for National Small Industries Corporation. It is a Govt. of India enterprise with the aim of helping small and micro-entrepreneurs to flourish in business activities. NSIC operates through a countrywide network of offices and aims to promote a
No person shall begin or carry on the export business of any spice, unless it has obtained registration under Spice board for making such export. The Spices Board is the regulatory and export promotion body for Indian spices under the Indian government
Under Ayushman Bharat or National Health Protection Scheme, every qualifying family will receive an annual rs.5 lakh insurance premium Benefits under this scheme are not exclusive to any hospital or branch in question. The patient will benefit from any
The Legal Metrology Directorate is a separate government department of the Ministry of Consumer Affairs, Food and Public Distribution. Legal Metrology is responsible for the standards and regulations relating to measurements and weights of measuring instr
A Free Sale Certificate (“FSC”) is a certificate issued by the national regulatory authority of the exporting country on the basis of national legislation stating that the product is freely available in the country but without any confirmation
MSME udyog aadhar registration has been replaced by Udyam Registration with effect from 1st of July 2020 as per the notification dated 26th of May 2020. The Ministry of Micro small and medium enterprises notified certain criteria for classifying
Pursuant to the amendments in the 1975 Professional Tax Act , a person (natural / legal) registered under the MGST Act is liable to register for Professional Tax Enrollment Certificate (PT-EC) and pay Rs.2500 annually. Furthermore, if the business has any
PSARA License is a prerequisite before any person in India starts a private security company. The Private Security Agency is an entity involved in providing security guards and other related services as an alternate to the police at an establishment. The
Registration and regulation of clinical establishments are provided for in the Clinical Establishments Act. Health facilities throughout the country with a view to prescribing essential care Minimum criteria for special kinds of facilities and services
Pursuant to the 1948 Factory Act, it is compulsory for each factory owner to register their premises with local authorities before starting a business. Factory License acts as an approval document provided by authorities to carry out manufacturing
CorpZo provides services for obtaining an Insurance Broker License in India, regulated by the Insurance Regulatory and Development Authority (IRDA). The website explains the process, categories of insurance brokers, eligibility criteria, prerequisites suc
Explore CorpZo's comprehensive services for obtaining an Insurance Marketing Firm License in India. Navigate the regulatory landscape with our expert guidance, understand the eligibility criteria, and learn how to leverage the potential of IMFs. Start you
Uniquely repurpose strategic core competencies with progressive content. Assertively transition ethical imperatives and collaborative manufactured products.Write About Us
© 2023 Corpzo Ventures Private Limited.