IRDA License

How to get an Insurance Broker License in India?

How to get an Insurance Broker License in India?

In order to carry out the activities of an insurance broker, you must possess a valid insurance broker license. Operating without such license shall invite penal consequences. As the insurance industry is blossoming day by day, so are the brokers. These brokers connect the insurance companies with the general public. In this article, we shall discuss insurance broker license in India.

Overview on Insurance Broker

As stated above, the insurance brokers connect the insurance companies with the general public. However, the terms insurance broker and insurance agents are sometimes used interchangeably, but there are few lines of differences between the two.

An insurance broker represents customers and makes sure that the customers get the best insurance policy that fits their needs. An insurance agent sells the products of a company to the customers and gets paid commission for it.

Another essential difference to note is that insurance agent represents the insurance company, and as the agent represents the company, he or she has the right to complete insurance sales transactions. Insurance brokers don’t have this right. They may have to hand over the account to the insurance agent or to the company.

Capital/Financial requirement to obtain Insurance Broker License

According to the IRDA (Insurance Broker) Regulations 2018[1], the Capital/Financial requirements to obtain Insurance Broker License are as follows:

  • Direct insurance broker–75 lakhs rupees;
  • Composite insurance broker– 5 crore rupees;
  • Reinsurance broker– 4 crore rupees.
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Eligibility criteria in terms of corporate structure

The eligibility criteria is as follows:

  • Any partnership registered under the Limited Liability Partnership (LLP) Act, 2008;
  • Any co-operative society registered under Co-operative Society Act, 1912;
  • Any company established under Companies Act, 2013 or any previous company law;
  • Any other individual recognised by IRDAI to do the business related to an insurance broker.

Procedure to apply for Insurance Broker License

The following procedure should be followed:

Procedure to apply for Insurance Broker License
  • Application form submission

An application should be made in Form B along with the type of broker business. The documents should also be attached to it.

  • Scrutiny of the application

The application, as well as the documents submitted, will be scrutinized.  In case of any query or any additional information, the authority will contact the applicant.

  • In-principle approval

After thorough investigation and scrutiny, the authority would issue in-principle approval for the license.

  • Issuance of the license

The grant of the in-principle approval depends on whether the authorities find the information to be complete on all fronts. The registration certificate shall be issued when all additional compliances are fulfilled. Such certificate shall be issued in Form J.

In case where the applicant fails to complete the compliances or formalities, the application shall be rejected. The authority shall communicate the same to the applicant and state the reason for the same. However, the applicant may apply again but only after expiry of one year from such a rejection.

Documents required

The following documents must be attached along with the application form:

  • Information deemed necessary in the Form-B of Schedule I of the regulations;
  • Copy of the charter documents (Memorandum Of Association (MOA) and Articles Of Association (AOA));
  • Relevant fees as per the category of the insurance broker;
  • Fit & Proper declaration according to Form G of Schedule I;
  • Details of the Directors/Partners, Promoters & Key Management Personnel;
  • Declaration stating that there is no disqualification from principal officer, director of the company;
  • Form F of Schedule I having the details of the qualified persons to manage the business along with their respective qualifications;
  • Details of statutory auditors & principal bankers along with the bank account number of the applicant;
  • Details of the infrastructure of business.
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Checklists for Insurance Broker License

The following checklists should be fulfilled:

  • Whether the unit has the word- Broking or Broker in its name;
  • The Memorandum of Association must contain the insurance broking as its primary objective;
  • The company must satisfy the minimum capital requirement;
  • There must not be any foreign capital that exceeds 26% of the total paid-up capital;
  • The principal officer should have a fair qualification and must possess the essential training;
  • The company should hold minimum 2 person with the obligatory qualification and training;
  • The company should have the infrastructure required and also a team of well-trained workforce to run the business;
  • The people involved in the insurance business should be qualified and trained.

What is the need for an insurance broker license in India?

  • To make sure that a significant number of insurance products are sold on behalf of the Insurance Business;
  • To ensure that compliance is made with the relevant laws and regulations related to insurance products;
  • To monitor the activities and conduct a market research on the insurance-related products;
  • To act on clients behalf to negotiate for insurance-related products.
  • Having a Insurance broker licence will assure clients about the authenticity of the broker;
  • To negotiate policies and premiums on behalf of clients.


If you wish to start an Insurance broker business in India, then do get the insurance broker license to carry out the operations. Failure to do so may invite penalties. Ensure that you fulfil the eligibility requirements to get the license/registration seamlessly.

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