{"id":24667,"date":"2021-01-22T11:51:30","date_gmt":"2021-01-22T06:21:30","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=24667"},"modified":"2021-01-22T11:51:32","modified_gmt":"2021-01-22T06:21:32","slug":"establish-insurance-brokerage-company-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/establish-insurance-brokerage-company-in-india\/","title":{"rendered":"How to Establish Insurance Brokerage Company in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Insurance Brokerage companies work as advisors for insurance plans. You will often struggle with decisions such as choosing an investment plan or insurance. Such companies have qualified employees who partner with insurance companies and know about insurance and related laws. <\/p>\n\n\n\n<p>Insurance\nbrokers assist people with their insurance requirements. They act as\nintermediaries between the insurance company and the individual willing to\npurchase the insurance policy.<\/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\/establish-insurance-brokerage-company-in-india\/#What_does_Insurance_Brokerage_Company_do\" >What\ndoes Insurance Brokerage Company do?<\/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\/establish-insurance-brokerage-company-in-india\/#What_is_the_Types_of_Insurance_Brokerage_Company\" >What is the Types of Insurance Brokerage Company?<\/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\/establish-insurance-brokerage-company-in-india\/#Eligibility_Criteria_to_Apply_for_Insurance_Brokerage_License\" >Eligibility Criteria to Apply for Insurance\nBrokerage License<\/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\/establish-insurance-brokerage-company-in-india\/#Particulars_Required_to_Get_an_Insurance_Broker_License\" >Particulars Required to Get an Insurance Broker\nLicense<\/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\/establish-insurance-brokerage-company-in-india\/#Process_to_Apply_for_an_Insurance_Brokerage_License_in_India\" >Process to Apply for an Insurance Brokerage\nLicense in India<\/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\/establish-insurance-brokerage-company-in-india\/#Rejection_of_Insurance_Brokerage_Application\" >Rejection of Insurance Brokerage Application<\/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\/establish-insurance-brokerage-company-in-india\/#Concluding_Remarks\" >Concluding Remarks<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_does_Insurance_Brokerage_Company_do\"><\/span>What\ndoes Insurance Brokerage Company do?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An insurance\nbrokerage company has extensive experienced in controlling various types of\ninsurance and managing insurance-related risks. Such company is required to\nobtain an insurance broker license. Now, getting a permit involves passing\nspecific exams. Therefore, educational requirements ensure that insurance\nbrokers have a significant level of expertise in the field.<\/p>\n\n\n\n<p>The chief executives of such companies must be well informed about all types of insurance schemes and how they work. Unlike insurance agents, whose sole job is to sell an insurance policy to a customer, insurance brokers bear a high amount of responsibility. Clients can also sue a brokerage company if they fail to deliver the promised results.<\/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\/documents-required-for-insurance-broker-license-in-india\/\">What type of Documents required for the Insurance Broker License?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Types_of_Insurance_Brokerage_Company\"><\/span>What is the Types of Insurance Brokerage Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>Listed below are the types of Insurance brokerage Company.<\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Direct Insurance Broker<\/h3>\n\n\n\n<p>A direct insurance broker tries to get insurance policies. They help their customers in purchasing the policy. They also help the customer choose a set of policies and earn a commission for selling a policy. Direct broker insurance companies also present market information about insurance. Following are the types of the direct insurance broker.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Direct-Insurance-Broker.png\" alt=\"Direct Insurance Broker\" class=\"wp-image-24679\" width=\"359\" height=\"368\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Direct-Insurance-Broker.png 985w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Direct-Insurance-Broker-293x300.png 293w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Direct-Insurance-Broker-768x786.png 768w\" sizes=\"(max-width: 359px) 100vw, 359px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Reinsurance Broker<\/h3>\n\n\n\n<p>A reinsurance\nbroker, as the name suggests, buys reinsurance for a firm. This process\ninvolves negotiating rates and finding the best policies in the benefit of the firm.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Composite Insurance Broker<\/h3>\n\n\n\n<p>Such insurance\nbrokers have a license to serve insurance services. They can give both life and\ngeneral insurance policies. Insurance\ncompanies or authorities selectively authorize licenses to such applicants.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_to_Apply_for_Insurance_Brokerage_License\"><\/span>Eligibility Criteria to Apply for Insurance\nBrokerage License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To obtain an insurance broker license, you must be registered with IRDAI. In addition, the government has put forward certain minimum criteria for obtaining insurance broker license. So, the applicant requires fulfilling the eligibility criteria to apply for an <a href=\"https:\/\/corpbiz.io\/insurance-broker-license\"><strong>insurance brokerage license<\/strong><\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who Can Apply for an Insurance Brokerage License?<\/h3>\n\n\n\n<p><strong><em>Individuals listed below may be eligible to apply for an insurance broker license<\/em><\/strong><\/p>\n\n\n\n<ul><li>Companies incorporated under the <em><strong>Companies Act of 2013<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>.<\/li><li>LLPs (Limited Liability Partners) incorporated under the Limited Liability Partnership Act, 2008. <\/li><li>Registered co-operative society incorporated under the Co-operative Societies Act, 1912 or any other version of it.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Particulars_Required_to_Get_an_Insurance_Broker_License\"><\/span>Particulars Required to Get an Insurance Broker\nLicense<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Schedule I- Form B <\/li><li>Copies of MoA &amp; AoA of the company<\/li><li>Schedule I-Form G <\/li><li>Schedule I-Form C<\/li><li>Declaration that POs and directors, partners,\netc. are not excluded according to the Section 42D of Insurance Act<\/li><li>Details of partners, directors, promoters,\nadvertisers, etc.<\/li><li>Qualified agents list with their academic\nqualifications and professional experience<\/li><li>Company\u2019s bank account details<\/li><li>Shareholders list (current + proposed)<\/li><li>Details of Principal Bankers\u2019 along with the details\nof the statutory auditors.<\/li><li>Balance sheet of audited company<\/li><li>Copy of the board resolution <\/li><li>Particulars of business place infrastructure\ncontaining specifics like office space, work power, etc. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_to_Apply_for_an_Insurance_Brokerage_License_in_India\"><\/span>Process to Apply for an Insurance Brokerage\nLicense in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once the applicant\nhas all the documents for an insurance brokerage application, he will\neventually have to apply for an insurance broker license. It consists of two\nsteps:<\/p>\n\n\n\n<ul><li>The applicant has to apply for the grant of certificate of registration <\/li><li>In next step, he can proceed with insurance broker license registration.<\/li><li>The applicant must submit a duly filled insurance broker license application Form B of Schedule-I. Other required documents and the application fee, have to be forwarded to the Insurance Regulatory Development Authority of India (IRDAI).<\/li><li>The documents submitted by the applicant will be thoroughly investigated by the authorities. They can also raise some questions if necessary and ask for additional documents in return, if needed.<\/li><li>&nbsp;The authorities will verify the documents of the insurance broker company. And if the documentation and information provided seem satisfactory, the authority will issue an in-principle approval to the insurance brokerage firm. \u2018In-principle\u2019 acceptance means that the applicant has complied with all requirements for a certificate of registration.<\/li><li>Upon obtaining in-principle approval, the company must comply with all additional requirements and also pay license fees. The payment of fees can be done through Demand Draft (DD) or electronically in favour of IRDAI, Hyderabad.<\/li><li>If all the eligibility requirements &amp; regulations prescribed by the IRDA Insurance Broker Regulations, 2018 are satisfied, the company is provided with a \u2018Certificate of Registration\u2019. <\/li><li>If the required eligibility criteria are met, a license will be issued in the name of the applicant. This license will have a validity of 3 years from the date of issue.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rejection_of_Insurance_Brokerage_Application\"><\/span>Rejection of Insurance Brokerage Application<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An insurance\nbroker business application may be rejected if the authorities find that the\napplicant has not met the eligibility criteria. In that case, the authorities\nshould inform the applicant within 30 days of the notice about the rejection.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Point to Remember<\/h3>\n\n\n\n<p>&nbsp;The applicant can apply again after one year\nof refusal of their insurance business application.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concluding_Remarks\"><\/span>Concluding Remarks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Insurance\ncompanies convert accumulated capital into productive investment. Insurance\nloss enables financial stability to be reduced and promotes trade and commerce\nactivities that result in sustainable economic growth and development. <\/p>\n\n\n\n<p>Thus, insurance companies play a vital role in the sustainable growth of the national economy. Insurance brokers are licensed to offer the best policy from any insurance company. Insurance Brokerage Company can give you the expert advice on the appropriate insurance policies. You may kindly associate with the <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> expert to know more about Insurance Brokerage Company.<\/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\/benefits-of-an-insurance-broker-license-in-india\/\">What are the Key Benefits of an Insurance Broker License? <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Insurance Brokerage companies work as advisors for insurance plans. You will often struggle with decisions such as choosing an investment plan or insurance. Such companies have qualified employees who partner with insurance companies and know about insurance and related laws. Insurance brokers assist people with their insurance requirements. They act as intermediaries between the [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":24668,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[334],"tags":[1456],"acf":{"service_id":"302"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":7503,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24667"}],"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\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=24667"}],"version-history":[{"count":10,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24667\/revisions"}],"predecessor-version":[{"id":24682,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24667\/revisions\/24682"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/24668"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=24667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=24667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=24667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}