{"id":35627,"date":"2021-09-15T11:14:21","date_gmt":"2021-09-15T05:44:21","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=35627"},"modified":"2021-09-15T11:14:23","modified_gmt":"2021-09-15T05:44:23","slug":"how-to-get-insurance-broker-license-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-get-insurance-broker-license-in-india\/","title":{"rendered":"Know How to Get Insurance Broker License in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">An insurance broker refers to an entity or individual that secures policies for the consumers. Insurance brokers would avail commission from the insurance company against the insurance products delivered to the customers. A company or individual seeking to serve as an insurance broker is required to avail of the insurance broker license from the IRDAI (Insurance Regulatory Development Authority of India).\u00a0 <\/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\/how-to-get-insurance-broker-license-in-india\/#What_are_the_types_of_Insurance_Brokers\" >What are the types of Insurance Brokers?&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\/how-to-get-insurance-broker-license-in-india\/#Who_Governs_the_Insurance_Broker_License_in_India\" >Who Governs the Insurance Broker License in India?<\/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\/how-to-get-insurance-broker-license-in-india\/#Underlining_eligibility_guidelines_for_obtaining_Insurance_Broker_License_in_India\" >Underlining eligibility guidelines for obtaining Insurance\nBroker 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-4\" href=\"https:\/\/corpbiz.io\/learning\/how-to-get-insurance-broker-license-in-india\/#Step_by_Step_process_for_availing_Insurance_Broker_License_in_India\" >Step by Step process for availing Insurance Broker License in India\u00a0<\/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\/how-to-get-insurance-broker-license-in-india\/#Procedure_for_Issuing_Insurance_Broker_License_registration\" >Procedure for Issuing Insurance Broker License\n(registration)<\/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\/how-to-get-insurance-broker-license-in-india\/#Rejection_of_application_for_Insurance_Broker_License\" >Rejection of application 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-7\" href=\"https:\/\/corpbiz.io\/learning\/how-to-get-insurance-broker-license-in-india\/#Documentation_for_availing_Insurance_Broker_License_in_India\" >Documentation for availing Insurance Broker License in\nIndia&nbsp;<\/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\/how-to-get-insurance-broker-license-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_types_of_Insurance_Brokers\"><\/span>What are the types of Insurance Brokers?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The section below entails the different types of insurance brokers that serve different purposes.\u00a0<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Direct Brokers<\/h3>\n\n\n\n<p>A direct broker refers to an entity that availed the brief\ninformation about the clients for an insurance business. Apart from this, a\ndirect broker facilitates professional advice about the different insurance\npolicies available. The direct broker also digs down the market to avail\nvaluable information on the insurance business. Further, such entities help in\nbridging the gap between the insurance companies and target consumers. The\nfundamental obligations of a direct broker include assisting clients on matters\nrelated to the insurance products, opening an e-insurance account, and aiding\nclients to make a timely premium.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Re-insurance Broker<\/h3>\n\n\n\n<p>A re-insurance broker closely resembles the duties performed by the\ndirect broker. Re-insurance broker, as the name suggests, manages the affairs\nrelated to the re-insurance business. The typical duties performed by\nre-insurance brokers include;<\/p>\n\n\n\n<ul><li>Selling re-insurance based\nproducts such as international insurance.<\/li><li>Maintaining the market\nstatistics of re-insurance markets<\/li><li>Negotiating with the concerned\ncustomers on behalf of the client&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Composite Broker<\/h3>\n\n\n\n<p>A composite broker serves as a platform that performs all the undertakings of a direct broker &amp; a re-insurance broker.\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\/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=\"Who_Governs_the_Insurance_Broker_License_in_India\"><\/span>Who Governs the Insurance Broker License in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Insurance Regulatory and Development Authority of India (aka IRDAI) is the prime regulator of <a href=\"https:\/\/corpbiz.io\/insurance-broker-license\"><strong>insurance broker license<\/strong><\/a> in India. The Insurance Regulatory and Development Act 1999 &amp; Insurance Act 1938 are regulations behind the insurance law. Apart from this, insurance broker license also comes under the ambit of Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Underlining_eligibility_guidelines_for_obtaining_Insurance_Broker_License_in_India\"><\/span>Underlining eligibility guidelines for obtaining Insurance\nBroker License in India&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Indian government has underpinned minimum requisites for the\ngrant of an insurance broker license. Apart from this, the applicant needs to\nget certified by the IRDAI through a standard procedure.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Corporate Structure<\/h3>\n\n\n\n<p><em><strong>The following can serve as an IRDAI-registered Insurance Broker in India<\/strong><\/em><\/p>\n\n\n\n<ul><li>A company that comes under the\nambit of the Companies Act, 2013 or the preceding Act, such as Company Act\n1956;&nbsp;<\/li><li>An entity functioning under the\nregime of the Limited Liability Partnership Act, 2008;<\/li><li>A cooperative society which\ncomes under the ambit of Cooperative society act 1912; and<\/li><li>Any other person or entity that\nis permitted to run a business of Insurance Broker<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Capital Requirements<\/h3>\n\n\n\n<p>The applicant must fulfil the capital requisites for availing Insurance broker license in India:\u00a0\u00a0<\/p>\n\n\n\n<ul><li>Direct Broker : INR 75 lakhs<\/li><li>Re-insurance: INR 4 crore<\/li><li>Composite Broker: INR 5 crore<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Net Worth Requisites<\/h3>\n\n\n\n<p>The applicant must fulfil the net worth requisites for getting an\nInsurance broker license in India:&nbsp;<\/p>\n\n\n\n<p><em><strong>Net worth pertaining to the insurance broker must not fall below;\u00a0<\/strong><\/em><\/p>\n\n\n\n<ul><li>50 lakh Rupees (Direct broker); &amp;<\/li><li>50% of the mini. capital requirements or contribution or equivalent for composite broker &amp; re-insurance broker.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Deposit Requirements<\/h3>\n\n\n\n<p>Before initiating an insurance broker business, every insurer must\ndeposit the following sum of capital in the scheduled bank.<\/p>\n\n\n\n<ul><li>Rs 10 Lakh (Direct Broker); and<\/li><li>10% of the mini capital\/\ncontribution is needed for composite broker\/re-insurance. Fixed deposit (FD)\nshall not be released to them in the absence of written consent of the\nauthority.&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Office Space\/ Facilities<\/h3>\n\n\n\n<p>The applicant seeking an insurance broker license in India must have\nthe necessary infrastructure in place, such as trained workforce, adequate\noffice space, and IT infrastructure or equipment.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Qualification<\/h3>\n\n\n\n<p>The license seeker must have at least two qualified persons at the\nbackup who have adequate training to serve as insurance brokers. This\nrequirement encompasses all kinds of insurance products, including life and\ngeneral insurance.<\/p>\n\n\n\n<p>The principal officers of business should possess the specialization\nin the insurance broker business. He must have the necessary certificates in\nplace to carry out such activities.&nbsp;<\/p>\n\n\n\n<p>The Principal Officer should be a part of key management executive\nof the organization and must be serving as a key position such as partner and\nwhole-time director.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Purpose of the Business<\/h3>\n\n\n\n<p>The applicant must outline the primary objects of the insurance\nbroker business. Such objects must find their way to the object clause of the\nCompany&#8217;s charter documents such as MOA and AOA.&nbsp;<\/p>\n\n\n\n<ul><li>Overseas investors are also\npermitted to make an investment in businesses dealing with insurance brokers.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_by_Step_process_for_availing_Insurance_Broker_License_in_India\"><\/span>Step by Step process for availing Insurance Broker License in India\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Application for Grant of Registration Certificate<\/em><\/strong><\/p>\n\n\n\n<ul><li>The applicant should file an application, viz FORM B- Schedule I, to obtain an insurance broker license in India.\u00a0<\/li><li>The application should be accompanied by a document cited in the FORM-C Schedule I of the regulations.<\/li><li>The application should be furnished along with the fees cited in the FORM D- Schedule I for granting the certification. Make sure to refer to the following fee structure before applying for an insurance broker license.\u00a0\u00a0<ul><li>Direct broker Rs.25,000.<\/li><li>Re-insurance broker Rs.50,000.<\/li><li>Composite broker Rs.75,000.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p>Apart from this, there are compulsory fees that have been paid for\nobtaining the certification of registration.&nbsp;<\/p>\n\n\n\n<ul><li>Direct Broker- INR. 50,000\/- after conferring the in-principal consent where the applicant is new. In case of renewal, the authority will charge the fees of Rs 1, 00,000\/- for a period of 3 years.<\/li><li>Re-insurance Broker- INR. 1, 50,000\/- after conferring an in-principal consent where the application is new. The fees for the registration renewal has been capped at Rs 3,00,000\/- for three years.<\/li><li>Composite Broker- Rs.2, 50,000\/- for a new application, after granting of an in-principal approval. In case of registration renewal, the authority will charge Rs 5,00,000\/- for three years as a standard fee.\u00a0<ul><li>The fee payable as the compulsory fee would be for the validity timeline of the registration certificate.\u00a0<\/li><li>Fees must be submitted via online mode or Demand draft payable in favour of IRDAI, Hyderabad.\u00a0<\/li><\/ul><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Clarification\/ Further Information<\/h3>\n\n\n\n<ul><li>The applicant may be prompted to provide information by the\nauthority<\/li><li>If needed, the applicant has to furnish such documents within thirty\ndays from the date of the notification.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_Issuing_Insurance_Broker_License_registration\"><\/span>Procedure for Issuing Insurance Broker License\n(registration)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>After scrutinizing the requisite conditions for an Insurance broker license, the authority will grant the in-principal approval to the applicant related to the certificate of registration.<\/li><li>The authority shall award the certificate if the applicant has complied with the underlying regulations.\u00a0<\/li><li>The certificate of registration would be accorded to the applicant after meeting the code of conduct recommended by the bylaws.\u00a0<\/li><li>The broker seeking a certificate of registration can also opt for other registrations under the IRDAI. Such registrations would be accorded after the issuance of the certificate of registration.\u00a0<\/li><li>An applicant can re-apply for the certificate of registration after confronting rejection from the authority owing to the change in law or held by a Securities Appellate <em><strong>Tribunal<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Tribunal\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>. An application under such a scenario can only be made after one year to the authority.\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rejection_of_application_for_Insurance_Broker_License\"><\/span>Rejection of application for Insurance Broker License <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>An application for obtaining an insurance broker license in India\ncould confront rejection if it is not found in line with underlying\nconditions.&nbsp;<\/li><li>In case of rejection, the authority shall intimate the applicant via\nnotice stating the reason for the same within 30 days of notification of the\nrejection.&nbsp;<\/li><li>An applicant can re-apply for an insurance broker license in India\nafter one year of rejection.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documentation_for_availing_Insurance_Broker_License_in_India\"><\/span>Documentation for availing Insurance Broker License in\nIndia&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=\"1024\" height=\"370\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Documentation-for-availing-Insurance-Broker-License-in-India-1024x370.png\" alt=\"Documentation for availing Insurance Broker License in India \" class=\"wp-image-35652\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Documentation-for-availing-Insurance-Broker-License-in-India-1024x370.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Documentation-for-availing-Insurance-Broker-License-in-India-300x109.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Documentation-for-availing-Insurance-Broker-License-in-India-768x278.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Documentation-for-availing-Insurance-Broker-License-in-India.png 1034w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The grant of insurance broker license in India is subjected to plenty of legal implications, and there is no way to bypass them. Hence, strive to stay in line with the aforesaid requisites while applying for this license. For any query, kindly prompt us by dropping the message in the comment box.<\/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>An insurance broker refers to an entity or individual that secures policies for the consumers. Insurance brokers would avail commission from the insurance company against the insurance products delivered to the customers. A company or individual seeking to serve as an insurance broker is required to avail of the insurance broker license from the IRDAI [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":35646,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[334],"tags":[1958],"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":3666,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/35627"}],"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=35627"}],"version-history":[{"count":30,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/35627\/revisions"}],"predecessor-version":[{"id":35661,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/35627\/revisions\/35661"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/35646"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=35627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=35627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=35627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}