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Regulation 13 of the Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018 lays down the conditions for the insurance brokers license conditions.
The registrations granted or renewal of registration granted to any of the insurance brokers shall be subject to the following condition:
The insurance broker who is registered under these regulations shall be exclusively carrying on the business of an insurance broker which is permitted under these regulations.
An insurance broker who wants to be registered under the Insurance Regulatory and Development Authority needs to be in compliance in all the provisions of the Insurance Regulatory and Development Authority Act, 1999, the rules and regulations, circulars, guidelines and other instructions issued by the authority from time to time.
The insurance broker needs to inform the IRDA in writing with immediate effect about any of the information submitted by the broker previously with the IRDA has been found to be false or misleading with respect to any material particular or if any material change has occurred in any of the information already suffered by the broker.
It is encumbent upon the insurance broker to take adequate steps for the redressal of grievances of its clients. The redressal must be done by the insurance broker within a period of 14 days from the date of receipt of such complaint. It is also the responsibility of the insurance broker to keep the IRDA informed about the number, nature and other details received from the client and submit the same in the form and manner prescribed by the authority from time to time.
It is mandatory on part of the insurance broker to solicit and procure a reasonable number of insurance policies which is commensurate with the number of the Broker Qualified Persons and resources at their disposal.
It is also mandated on the insurance broker to maintain the records in the format prescribed by the authority which shall capture all the policy wise details and every policy solicited by the Insurance Broker is tagged to the broker qualified person or authorised person wherever applicable.
The insurance broker has been restrained by the provisions from undertaking multi-level marketing for solicitation and procurement of insurance products.
The Insurance broker needs to be in compliance of the Code of Conduct which has been prescribed by the authority while undertaking the insurance broking business
The Insurance Broker needs to maintain the books of accounts in the manner that has been prescribed by the IRDA.
Apart from the above mentioned Insurance Broker License conditions, the IRDA also takes into account the following considerations before granting a certificate of registration:
These Insurance Broker License Conditions have been developed in a certain manner so that interests of all the stakeholders associated with the Insurance Broker and especially the customers are not harmed in any manner. These Insurance Broker License Conditions are introduced so as to ensure that an applicant has minimum standards of fulfilling the necessary duties of an insurance broker.
Read our Article:How to get an Insurance Broker License in India?