Application for Insurance Broker Registration may be made for life and general insurance broker. The Insurance Regulatory and Development Authority (IRDA) is the apex authority and regulator for this.
Submission of application for Insurance Broker Registration: —
An applicant shall make its application for Insurance Broker Registration in the specified application form under Schedule I – Form B of the regulations of IRDA.
Such an application for grant of a certificate of registration shall be submitted as per Regulation 3 along with the necessary documents as mentioned in Schedule I – Form C of these regulations.
Application for registration shall be submitted along with the required fees as mentioned in Schedule I – Form D of the regulations.
Documents required for such Insurance Broker Registration: –
- The applicant must submit the following documents with the application: Application Form duly completed and duly signed by at least two directors/partners.
- A demand draft for payment of the requisite amount of license fee for Insurance Broker Registration.
- Memorandum of Association and Article of Association of the company (In the case of the company) or Partnership Deed in case of the partnership firm as the case may be.
- Audited Balance Sheet of the Company, if applicable.
Insurance Broker License
- In-Principal Approval form IRDA
- Insurance broker Company registration
- Business plan for Next 5 Years
- Operation plan, Organization Policy
- A detailed statement of the shareholding pattern of the company duly certified by the auditor.
- IT returns for the last 3 years of Individual shareholders along with their net worth certificates.
- Annual accounts of the shareholder companies for the last 3 years, if any.
- Board resolution of the shareholder company supporting such investment in the said company.
- Auditors certificate regarding NBFC status of the shareholding company
- If such a shareholding company is an NBFC (Non-banking finance company), then-No Objection Certificate (NOC) from RBI is required.
- Detailed CV and attested testimonials including training certificate of the Principal Officer of the company.
- Detailed CV and testimonials of the key managerial persons of the company.
- List of persons responsible for procuring insurance business for the company with their complete testimonials.
- Necessary documents and proof of infrastructure, office space, trained manpower, etc. available in the company.
- List of prospective clients with expected premium by the company.
- Business plans and income projection for next coming 3 years with the class-wise break-up with projected revenue account, profit and loss account, and balance sheet.
- Detailed organization chart mentioning the roles and responsibilities of each category of management.
- Affidavit in respect of non-suffering from any disqualification under Section 42 D of the Insurance Act.
- An undertaking in respect of non-holding of any Directorship/employment in any other insurance entity by the Director/employees of the applicant company.
- An undertaking regarding non-holding of any agency/surveyor/TPA license by any director/employee
- An undertaking that in the past no person connected to the applicant has been denied license by the authority
- An undertaking by the Principal Officer regarding non-violation of the code of conduct
- An undertaking that the applicant is not engaged in any other business or activities other than the objectives of the applicant as mentioned in MOA/Partnership deed.
Personal Presentation by the applicant Company:
The applicant after completing the necessary requirements is required to appear before the Authority for a presentation of business plans with reference to its application submitted for Insurance Broker Registration.
The Authority while scrutinizing an application for Insurance Broker Registration shall consider the various aspects of the applicant company and decide to grant the approval to the company.
Every applicant eligible for the grant of a certificate of registration shall pay such fees as specified by the Authority and it shall not process any application which does not submit the required fees.
Procedure for Insurance Broker Registration: –
When the Authority is satisfied that the applicant company has fulfilled all the specified conditions for Insurance Broker Registration, it shall first issue an in-principle approval to the applicant and subsequently on satisfying and fulfilling necessary requirements will issue a Certificate of Registration.
A Certificate of Registration once issued shall be valid for a period of three years from the date of the issue.
The insurance broker will not be permitted to do insurance business/activity without a valid Certificate of Registration.
Rejection of Insurance Broker Registration Application: –
An application for Insurance Broker Registration which is not complete in all respects and not conforming to the instructions prescribed in Schedule I – Form B of the regulations and not adhering to the requirements and/or directions of the Authority issued from time to time, shall be rejected.
Any applicant, whose application is rejected by the Authority, may appeal within a period of forty-five days from the date of receipt of such intimation, to the Securities Appellate Tribunal for its consideration.
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