Select Your Location
A corporate insurance agent is a recognised, certified expert serving the needs of a corporate business or group. A corporate insurance agent is a mediator because insurance firms can’t contact every customer. Before giving the services, the corporate insurance broker must determine what the company needs. He must also consider the number of insurers and the services provided in opposition to it. Corporate agents are businesses that take part in producing, soliciting, or servicing the insurance business of life insurers, general insurers, and health insurers. They can be co-operative societies, LLPs, NGOs, rural banks, or Micro Finance Lending Organizations.
Table of Contents
Any entity or person holding a certificate of registration issued by the authority to solicit and serve insurance business for any of the specified categories of general, health and life is referred to as a “corporate agent” as per Regulation 2(b) of the Insurance Regulatory and Development Authority of India (Registration of Corporate Agents) Regulations, 2015. A trusted source who sells insurance on behalf of or as an agent for an insurance company is known as a corporate agent. Since the implementation of legislation on April 2016, numerous corporate agents have registered in accordance with the aforementioned provision.
The corporate agent sells the insurance company/s products in addition to representing the interests of the insurer. A corporate agent would need to get a corporate agency license in order to work on behalf of the insurance firm. An organisation cannot serve as a corporate agent without a corporate agency license.
An individual who wants to work from the comfort of their home and earn money can choose to become a corporate insurance agent. A fantastic choice for people who are financially savvy, retirees, homemakers, etc. These are some of the benefits:
To qualify for a corporate agent license, you must meet the following requirements:
Minimum Capital Requirements – A candidate with an insurance distribution firm must have a net worth of Rs. Fifty lakhs and equity capital or contribution, and the organisation is required to manage the net worth criteria at all times. The central government will set the actual holding of contributions or equity shares made by foreign investors for applicants who are requesting in the insurance distribution sector.
The following requirements have to be met by the applicant to be registered as a corporate agent:
A limited liability partnership created under the LLP Act of 2008, a cooperative society registered under the co-operative societies Act of 2013 or the company law, a banking company, a corresponding new bank created under the Banking Companies Act of 1949, a regional rural bank established under the Regional Rural Banks Act of 1976, a non-governmental organisation, or a microlending finance organisation covered under the co-operative society. Any other person may be recognised by the authority to act as a corporate agent.
Other Criteria – The applicant must additionally meet the following requirements in order to be granted a Corporate Agency License;
Becoming a corporate insurance agent has many advantages. Some of them are as follows:
Stay updated – Every person eventually aspires to fit into the business culture of suits and boots. The question of whether one’s wish will come true or not, and if it does, if it would fulfil their expectations, is what frightens a person. So, pursuing a career as a corporate insurance agent satisfies all of these aspirations. A corporate insurance agent gains knowledge of the business’s expertise and serves as a consultant to locate and protect them with the appropriate policy. The business becomes his universe, where he or she might envision a career as an insurance agent for businesses.
Financial Freedom – Being a corporate insurance agent unquestionably helps one achieve financial independence, whether one works full-time or while learning. The benefit is that he/she can work when and how he/she wants and yet make as much money as possible.
Numerous Opportunities – There are numerous opportunities to provide different kinds of corporate insurance. This clearly states that there won’t ever be a shortage of possibilities. It depends on his or her resolve to become the highest-paid corporate insurance agent possible.
Personal and Professional Development – One of the key benefits is the growth component. You get to know and interact with many knowledgeable businesspeople who support your personal and professional development.
The job of a corporate insurance broker was tiresome and confusing before. It is now simple and convenient when digitisation. Because of this, most Corporate Insurance Agents choose to work with organisations that offer simple online documentation. Another challenge is that not all insurance agents can be entities, which is a crucial prerequisite for business insurance. The best course of action is to partner with a qualified service provider. The organisation Choice Connect provides insurance agents with several opportunities and straightforward procedures.
Application Process for a Corporate Insurance Agent License
1). The applicant should make a corporate agency license application.
2). A corporate agency license application must be submitted using Form A of Schedule I.
3). An Account Payee draft made out by the “IRDAI” is required to cover the fee of Rs. 10,000 plus taxes. You can pay the fees electronically as well.
4). The applicant must acquire a No Objection Certificate (NOC) regarding the same if the applicant is a financial institution. The NOC must handle the corporate agency business transactions. However, corporate agents that hold licences issued in accordance with the 2002 legislation are exempt from submitting a NOC.
5). The submission of the application must fall under one of the following categories:
6). The certificate for registration would be given to the applicant and any group entities of the applicant. However, neither the applicant nor any other company shall be engaged in any other line of business, including that of a corporate agent, Insurance Marketing Company, Insurance Broker, or Corporate Agency Company. There must not be any conflict of interest between the business if an entity is currently engaged in the business of facilitating the purchase of insurance.
Together with the corporate agent licence registration application, the following paperwork is required:
A Corporate Agent’s registration certificate is valid for three years from the date of its issue. But, unless the corporate agent registration certificate is revoked or terminated due to a violation of the authority’s rules, this validity may be compromised before the three years are over.
To conclude, any person who operates as a corporate agent without holding a valid license, the authority will take legal action against that person under the act or other applicable laws for such violation. Whenever you need clarification in selecting the policies, get assistance from a corporate insurance agent or an insurance broker. It is essential because they are acting in the customer’s best interest.
Also Read: Requirements for Registering as a Corporate Agent
I am a driven and meticulous professional who completed B.Com BL (Hons) from Tamil Nadu Dr. Ambedkar Law University and completed Master of Laws in specialization (Criminal Law with Cyber Crimes). I have extensive experience in Criminal Litigation and want to utilise my legal knowledge in writing also I have proficiency in writing legitimate content with comprehensive research. My core areas of interest are Business Law, Intellectual Property Rights, and Cyber crimes.
The Alternative Investment Funds (AIFs) Pro-rata and Pari-Passu Rights Proposal Consultation Pa...
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Every assessee in India is obligated to file an income tax return and make the timely payment o...
In the recent past, India has seen burgeoning demand for internet and smartphones. The rapid ri...
The Securities and Exchange Board of India (SEBI), the capital markets regulator, has recommend...
The objective of the enactment of the Prevention of Money-laundering Act, 2002, i.e. PMLA (the...
Tax planning is a continuing effort and a management strategy for ensuring the minimization of...
Are you human?: 4 + 1 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
National Housing Bank (NHB) has been established under the National Housing Bank Act, 1987 to operate as a principa...
14 Feb, 2019
Regulation 13 of the Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018...
15 Mar, 2022
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!