IRDA Insurance License

• Insurers are proper companies that undertake risks and write policies (requiring heavy investment and an initial deposit). 
• Brokers who can be an LLP or a company.
• Corporate agents who can be a legal entity, limited liability partnership, bank, or NBFC. 
• Marketing firms (IMF)
• Web aggregators mostly tech platforms used for comparing schemes.
• Third-party administrators
• Individual agents. 

• Cost-effective for you as a startup seeking a corporate agent, IMR, or broker license.
• Your documentation workload would be reduced by around 60%. 
• In-house staff would have more time to focus on core functions. 
• Fewer chances of delays and rejections.
• Best legal and regulatory business advisory via PAN India insurance professionals.

• Incorporation documents- certificate, MOA/AOA, PAN, Aadhaar, and passport for KYC, DIN, DSC, CA-certified net worth of the company/promoter, criminal/financial background checks, audited financial statements, appointment letter of the principal officer, CV and resumes, IRDAI training and passing certificate, business plan, and target markets, organizational structure. 
• You will also need to provide details on your IT systems and website for web aggregators, a declaration on no conflict of interest and IRDA compliance, a mechanism for grievance redressal, and a risk management policy. 
• Agreements with insurers and board resolution for corporate agents.
• Indemnity insurance for brokers.

Yes, most businesses and entrepreneurs do go with an intermediary route in India because it's more practical and financially doable.

• All you need to do is select a category like a broker, corporate agent, IMF, web aggregator, or TPA agent. 
• The next thing you will have to do is register your company, depending on your category. 
• Check your fund availability as per the categories.
• Next, you will have to appoint a principal officer (compliance) who must be qualified via the IRDAI exam.
• Prepare your documents like the company registration certificate, shareholder agreements/pattern, business plan, indemnity insurance, and a net worth certificate.  
• File the application via the BAP portal and pay the fees.
• The agency will review your application, and you must reply to every query within the allotted time. Also, they may visit your office to check if your tech infrastructure is up to par. 

Some of the best industries for business setup in Sri Lanka include:

• For insurance brokers- INR 50,000 to INR 1.5 lakhs
• Corporate agents- INR 25,000 application and INR 1 lakh as registration fees. 
• IMF- INR 10,000 to INR 25,000
• Web aggregators- INR 25 lakhs 
• Individual agents- between INR 2,000-5,000

Without a doubt, in case you are caught selling policies and insurance products without getting a proper company or intermediary license, then you will have to:

• Pay heavy fines of INR 10 crore or more based on the seriousness of your violation and license type. 
• Face an imprisonment of up to 10 years with fines. 
• Cease and desist orders- your business would be immediately shut down.
• You will be blacklisted in the industry. 
• Directors and promoters will be declared as not fit and proper. 
• You will also be liable against customer claims and complaints. 
• Action may be taken against entering unenforceable (not valid) agreements and contracts under other laws for provisions like fraud and cheating. 

Agents and brokers will also be held liable for:

• acting as intermediaries without a valid license; 
• getting commission without IRDAI’s specific approval; and 
• operating an online insurance platform without an aggregator license. 

Well, the regulator will cancel their license and even initiate legal action, such as a lawsuit or financial penalties against them. Always remember your ethics and code of conduct while selling or distributing policies.

Life insurance is the top leader currently with large profits. Some key players are LIC, SBI Life, HDFC Life, and ICICI Lombard. Most earnings portions are driven by investment returns and premium volumes.

A reinsurance company basically provides insurance to insurance companies, meaning they act as insurance for insurers. They sort of take on a certain portion of risk in exchange for premiums. In the entire process, the insurers mitigate their financial stability and enhance their product line without going bankrupt.
You need at least INR 200 crore to start a reinsurance company business in India- a very niche market.

Yes, you must be 18 years of age at the time of application filing. Also, even though there are no maximum age restrictions, most companies take up to 70 years.

Yes, you can sell multiple insurance policies across various companies if you become a POSP- point of sales person via the IRDAI.
Alternatively, you can get a composite license and sell life or general insurance of one company.

You must be at least 18 years of age with a minimum of 10th standard education. Also, you must complete the training for 15-20 hours and pass the IRDAI IC-38 exam with 40% (minimum score.

A corporate agent is a company registered in India and licensed by the IRDAI to sell insurance products just like an individual agent.

• From basic application filing to policy activation. 
• Data security and confidentiality of your sensitive data. 
• You will get constant notifications and communications through your dedicated manager. 
• On-time follow-up and liaison support, so your application is not delayed or rejected. 
• Full document support with unlimited edits and modifications. 
• Expert guidance for agents, brokers, and company registration.
• Compliance filings and regulatory reporting for one year- all inclusive. 
• Timely renewal for your license, guaranteeing smooth business operations.

Sri Lanka offers numerous advantages:

• Appoint an actuary 
• Get approval for insurance products. 
• Make a statutory deposit for premium income. 
• File quarterly financial results and solvency statements. 
• Submit actuarial valuation and audited financial statements.
• Maintain solvency margins.
• Form committees for audit, risk management, and policyholder protection. 
• Settle claims on time, manage redressal mechanisms for client complaints, and report every development to the regulator.