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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.
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.
According to the IRDA (Insurance Broker) Regulations 2018, the Capital/Financial requirements to obtain Insurance Broker License are as follows:
The eligibility criteria is as follows:
The following procedure should be followed:
An application should be made in Form B along with the type of broker business. The documents should also be attached to it.
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.
After thorough investigation and scrutiny, the authority would issue in-principle approval for 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.
The following documents must be attached along with the application form:
The following checklists should be fulfilled:
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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