{"id":18406,"date":"2020-10-23T14:36:48","date_gmt":"2020-10-23T09:06:48","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=18406"},"modified":"2020-10-23T14:36:50","modified_gmt":"2020-10-23T09:06:50","slug":"online-insurance-broker-license-everything-you-need-to-know","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/online-insurance-broker-license-everything-you-need-to-know\/","title":{"rendered":"Insurance Broker License: Everything you need to know"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Choosing the right insurance plan won\u2019t be\nan easy undertaking for the customer, particularly when the market is already\nflooded with plenty of options. This is where Insurance Broker comes into the\npicture. An insurance Broker dealt with the selling of insurance plans of the\ncompany to the customers.<\/p>\n\n\n\n<p>They usually represent themselves as an integral part of the organization and their jobs is to help the customers to pick the right insurance plan that fits their budget and needs. To carry out such a task in India, one has to steak around with legal obligations and avail the <a href=\"https:\/\/corpbiz.io\/insurance-broker-license\"><strong>Insurance Broker License<\/strong><\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/online-insurance-broker-license-everything-you-need-to-know\/#Who_Governs_the_Insurance_Broker_License_in_India\" >Who Governs the Insurance Broker License in India?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/online-insurance-broker-license-everything-you-need-to-know\/#Eligibility_Criteria_for_Insurance_Broker_License\" >Eligibility Criteria for Insurance Broker License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/online-insurance-broker-license-everything-you-need-to-know\/#What_is_the_Classification_of_an_Insurance_Broker\" >What is the Classification of an Insurance Broker?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/online-insurance-broker-license-everything-you-need-to-know\/#Documentation_for_Obtaining_Insurance_Broker_License\" >Documentation for Obtaining Insurance Broker License&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/online-insurance-broker-license-everything-you-need-to-know\/#Detail_steps_for_obtaining_the_Insurance_Broker_License\" >Detail steps for obtaining the Insurance Broker\nLicense&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/online-insurance-broker-license-everything-you-need-to-know\/#The_Fee_Structure_for_Insurance_Broker_License\" >The Fee Structure for Insurance Broker License&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/online-insurance-broker-license-everything-you-need-to-know\/#Expiration_and_Renewal_of_Insurance_Broker_License\" >Expiration and Renewal of Insurance Broker License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/online-insurance-broker-license-everything-you-need-to-know\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Governs_the_Insurance_Broker_License_in_India\"><\/span>Who Governs the Insurance Broker License in India?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>At present, there are two authorities who are responsible for handling and regulating the Insurance Broker License in India. These are:-<\/strong><\/em><\/p>\n\n\n\n<ul><li>Insurance Regulatory Development Authority Act, 1999;<\/li><li>Insurance Regulatory Development Authority of India (Insurance Brokers) Regulations, 2018.<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/know-about-insurance-web-aggregator-license-benefits-eligibility-and-registration-process\/\">Know about Insurance Web Aggregator License; Benefits, Eligibility and Registration Process<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_Insurance_Broker_License\"><\/span>Eligibility Criteria for Insurance Broker License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The following are the eligible for carrying out the insurance brokerage-related activities in India&nbsp;<\/em><\/strong><\/p>\n\n\n\n<ul><li>Any entities working under the canopy of <em><strong>Companies Act, 2013<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>;\u00a0<\/li><li>Any co-operative societies (registered) adhere to the guidelines of the Co-operative Societies Act, 1912;<\/li><li>Any <a href=\"https:\/\/corpbiz.io\/llp-registration\"><strong>LLP registered<\/strong><\/a> under the LLP Act, 2008.\u00a0<\/li><li>Authority certified individual.\u00a0<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Capital Requirements<\/h3>\n\n\n\n<p><em><strong>The applicant should meet the minimum capital requirement for obtaining a broker license. Those are as follows:-<\/strong><\/em><\/p>\n\n\n\n<ul><li>Direct Broker- Seventy Five Lakhs <\/li><li>Re-insurance Broker- Four Crore<\/li><li>Composite Broker- Five Crore<\/li><\/ul>\n\n\n\n<p>(Note:\nthe given amount is in INR)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Net Worth Requirements<\/h3>\n\n\n\n<p><strong><em>The applicant should meet the minimum requirement regarding for obtaining a broker license. Those are as follows:-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Direct broker: Fifty lakh rupees <\/li><li>Composite and re-insurance broker: fifty percent of the\ncapital <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Deposit Requirements<\/h3>\n\n\n\n<p><strong><em>Every applicant prior the commencement of broker activities should maintain the given threshold of deposit with the schedule bank. Those are as follows:-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Direct Broker : Ten lakh rupees <\/li><li>Re-insurance \/ composite broker: ten percent of the capital.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Office Space\/ Facilities<\/h3>\n\n\n\n<p>The\napplicant seeking Insurance Broker License should meet necessary infrastructure\nrequirement such as equipment, adequate office area, skilled workforce, and IT\ninfrastructure to efficiently address the project.&nbsp; <\/p>\n\n\n\n<p>In case if the applicant is a partner in a\nregistered LLP firm then the following individuals are not eligible to be a\npartner<\/p>\n\n\n\n<ul><li>Non-Resident Entity.<\/li><li>Any foreign LLP registered under the law of that foreign\ncountry;<\/li><li>Any person from an overseas location.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Classification_of_an_Insurance_Broker\"><\/span>What is the Classification of an Insurance Broker?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In our country, the Insurance Broker is\nclassified as Direct Insurance Broker, Reinsurance Broker, and Composite Insurance\nBroker.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Direct Insurance Broker<\/h3>\n\n\n\n<p>Direct Insurance Brokers engaged with\ndirect selling of the insurance product. They approach the prospect and provide\nthem support in choosing the right policy depending on their needs. They also\nassist clients when it comes to paying the premium or opening the e-insurance\naccount.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Reinsurance Broker<\/h3>\n\n\n\n<p>A Reinsurance Broker acts almost similar to\nthe Direct Insurance Broker. Below are the tasks they perform in general:&nbsp;<\/p>\n\n\n\n<ul><li>Handling market statistics\nrelated to the reinsurance market.&nbsp;<\/li><li>Selling reinsurance-based\nproducts to the prospects.&nbsp;<\/li><li>Deal with negotiations\naffairs.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Composite Insurance Broker<\/h3>\n\n\n\n<p>A Composite insurance broker renders\ninsurance oriented services to the prospects on the behalf of the client. The insurance\nservices rendered by these individuals are associated with the life and general\ninsurance. But, the IRDAI has some tight compliance for such scope of work.\nThis is the reason why the issuance of such a license is not as simple as that\nof other types.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documentation_for_Obtaining_Insurance_Broker_License\"><\/span>Documentation for Obtaining Insurance Broker License&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The given list exhibits the type of\ndocumentation required to avail the Insurance Broker License in India. The\napplicant seeking such a license requires filing an application in Form C of\nschedule I and forwards it to the authority along with the given\ndocuments.&nbsp;<\/p>\n\n\n\n<ul><li>Form B to file in application.<\/li><li>Copy of MOA and AOA.<\/li><li>Particulars regarding the Principal Officer in Form G of\nSchedule I. The said individual must pass the insurance examination prior to\nthe submission of the application.&nbsp;<\/li><li>A declaration stating that the Principle officer and other\nkey personals of the company such as director and partners are included as per\nthe direction of Section 42 D of the Insurance Act;<\/li><li>Complete particulars of the directors and other key\nmanagerial personnel.&nbsp;<\/li><li>Complete details of 2 eligible agents plus their\nqualification information.<\/li><li>Detail regarding the bank account of the company.<\/li><li>Details related to the principal bankers and statutory\nadvisors.&nbsp;<\/li><li>Shareholder\u2019s list.&nbsp;<\/li><li>Board resolution copy passed in the board meeting of the\ncompany for promoting and investing in the company.&nbsp;<\/li><li>Company\u2019s Balance sheet (audited one).<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Detail_steps_for_obtaining_the_Insurance_Broker_License\"><\/span>Detail steps for obtaining the Insurance Broker\nLicense&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"590\" height=\"350\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-90.png\" alt=\"Insurance Broker License \" class=\"wp-image-18407\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-90.png 590w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-90-300x178.png 300w\" sizes=\"(max-width: 590px) 100vw, 590px\" \/><\/figure><\/div>\n\n\n\n<p>Following step-by-step instructions can help\nyou avail Insurance Broker License in India. Make sure to follow them with the\ndeliberate approach.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">&nbsp;Application Submission&nbsp;<\/h3>\n\n\n\n<p>To get started, the applicant company needs\nto take advantage of Form B for filing an application along with a prescribed fee.\nThe applicant must go along with the requested document to the Insurance\nRegulatory Development Authority of India (IRDAI).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Documents Verification<\/h3>\n\n\n\n<p>The authority will then do the in-depth\nexamination of the submitted paperwork along with the application. During the\ninvestigation phase, the authority might call the applicant for questioning\nupon pinpointing the errors in the submitted documents. Moreover, the authority\nmight intimate the applicant for the submission of additional documents.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Additional documents<\/h3>\n\n\n\n<p>Upon receiving the notification regarding\nthe submission of the documents, the applicant must submit the requested\ndocumentation within thirty days of intimation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Issuance of in-principal approval&nbsp;<\/h3>\n\n\n\n<p>As soon as the authority completes the validation\nprocess and approves the submitted docs, they will grant in-principle approval\nrelated to the Insurance Broker License.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Additional Submission&nbsp;&nbsp;<\/h3>\n\n\n\n<p>In this step, the applicant needs to deal\nwith additional requirements and submit requested the fee as prescribed by the\nauthority.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Issuance of the Certificate of Registration<\/h3>\n\n\n\n<p>Once the authority finds the candidature of\nthe applicant legitimate on all ground, they will issue the COR (Certificate of\nRegistration) without any further delay. The applicant will receive the\ncertification in Form J as specified in Schedule I of the Insurance Regulatory\nand Development Authority of India regulations.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Fee_Structure_for_Insurance_Broker_License\"><\/span>The Fee Structure for Insurance Broker License&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The fees related to the Insurance Broker License needs to submit to the authority in Form D of the schedule. The following table illustrates the fee structure related to the Insurance Broker License.<\/p>\n\n\n\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td width=\"160\">\n<p>&nbsp;<\/p>\n<\/td>\n<td width=\"160\">\n<p><strong>Non-Refundable Application Fees (INR)<\/strong><\/p>\n<\/td>\n<td width=\"160\">\n<p><strong>Registration Fee for Fresh Application (INR)<\/strong><\/p>\n<\/td>\n<td width=\"160\">\n<p><strong>Renewal Fee for a period of 3 years (INR)<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"160\">\n<p><strong>For Direct Broker <\/strong><\/p>\n<\/td>\n<td width=\"160\">\n<p>25,000<\/p>\n<\/td>\n<td width=\"160\">\n<p>50,000<\/p>\n<\/td>\n<td width=\"160\">\n<p>75,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"160\">\n<p><strong>For Reinsurance Broker<\/strong><\/p>\n<\/td>\n<td width=\"160\">\n<p>50,000<\/p>\n<\/td>\n<td width=\"160\">\n<p>1,50,000<\/p>\n<\/td>\n<td width=\"160\">\n<p>2,50,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"160\">\n<p><strong>For Composite Broker<\/strong><\/p>\n<\/td>\n<td width=\"160\">\n<p>1,00,000<\/p>\n<\/td>\n<td width=\"160\">\n<p>3,00,000<\/p>\n<\/td>\n<td width=\"160\">\n<p>5,00,000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Expiration_and_Renewal_of_Insurance_Broker_License\"><\/span>Expiration and Renewal of Insurance Broker License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Technically, the Insurance Broker License serves\na validity period of three years. The renewal application can be submitted to\nthe authority before one month of the expiration of the license.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The role of the Insurance Broker License holders is to sell a wide variety of insurance plans to the different customers, based on their requirements. They help the customer to make informed decisions and pick the right policy through precise guidance. There are several delicacies that one encounter while availing of this license. If you wish to skip these obstacles and obtain a license without legal complexities, connect with <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz\u2019s<\/strong><\/a> professional without any second thought.\u00a0 <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-for-insurance-broker-license-online\/\">Step by Step Procedure for Insurance Broker License<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Choosing the right insurance plan won\u2019t be an easy undertaking for the customer, particularly when the market is already flooded with plenty of options. This is where Insurance Broker comes into the picture. An insurance Broker dealt with the selling of insurance plans of the company to the customers. They usually represent themselves as an [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":18409,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[334,331],"tags":[495],"acf":{"service_id":"302"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4657,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18406"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=18406"}],"version-history":[{"count":4,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18406\/revisions"}],"predecessor-version":[{"id":18412,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18406\/revisions\/18412"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/18409"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=18406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=18406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=18406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}