How to Apply Online For Insurance Broker Registration
Insurance brokers are certified professionals with IRDAIs’ approval. They objectively perform various functions, including solicitation of insurance products, assisting customers with decision-making, claim settlement, etc. They act as a bridge between the prospects and the insurance companies, letting the latter boost market presence, performance, and sales. IRDAI approval in the form of insurance broker registration is mandatory to leap into the world of insurance broking business. This article takes a detailed walkthrough of the legalities to secure such a registration.
Understanding the Type of Insurance Brokers
Insurance brokers fall under the ambit of IRDAI i.e. Insurance Regulatory and Development Authority of India. They are classified as follows:
Direct Brokers
Direct Brokers refer to professionals who assist insurance companies belonging to different domains, including life, health, or general. Their roles and responsibilities include facilitating services regarding claim settlement, solicitation, advisory, etc.
Reinsurance Brokers
Reinsurance Brokers, on the other hand, are tasked with responsibilities akin to direct brokers. Though they have additional specialization in risk analysis, treaty placements, and accessing global reinsurance markets, expanding their spectrum of services.
Composite Brokers
Composite Brokers can serve the role of direct and reinsurance brokers, offering augmented services to insurance companies. They essentially deal with retail and corporate insurance while managing reinsurance placements, providing an all-encompassing solution.
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Eligibility Criteria For Securing Insurance Broker Registration
To qualify for an Insurance Broker Registration, fulfillment of given conditions is mandatory.
| Criteria | Details |
| Corporate Structure | Companies registered under the Companies Act, LLPs under the LLP Act, 2008, cooperative societies, or other recognized entities by IRDAI. |
| Capital Requirements | Direct Broker: ₹75 Lakhs, Reinsurance Broker: ₹4 Crore, Composite Broker: ₹5 Crore. |
| Net Worth Requirements | Direct Broker: ₹50 Lakhs, Reinsurance Broker: ₹2 Crore, Composite Broker: ₹2.5 Crore. |
| Deposit Requirements | Direct Broker: ₹10 Lakhs, Reinsurance/Composite Broker: 10% of the minimum capital. |
| Office and Infrastructure | Adequate office space, equipment, trained manpower, and IT infrastructure. |
| Qualified Personnel | At least two qualified individuals with requisite training and certifications for life/general insurance brokering. |
| Principal Officer Requirements | Whole-time director, partner, or executive with necessary qualifications and experience. |
| Purpose of Business | Insurance brokering must be the main object in the AOA and MOA. |
| Professional Indemnity Insurance | Mandatory insurance cover throughout the registration validity. |
Documents Required for Insurance Broker Registration
| Category | Details |
| Application Forms | FORM B (Schedule I) for the type of insurance broker business. |
| Supporting Documents | As specified in FORM C (Schedule I) of IRDAI Regulations. |
| Fee Details | Proof of fee payment per FORM D (Schedule I). |
| Principal Officer Credentials | Qualifications, experience certificates, and any other related documentation. |
| Infrastructure Proof | Proof of office space, IT facilities, and workforce readiness. |
| Professional Indemnity Insurance | Policy details (can be submitted within 12 months for new applicants). |
| Net Worth Certificate | Auditor-certified certificate as per the Companies Act. |
Step-wise Process for Insurance Broker Registration
Follow the given process to secure Insurance broker registration in India. The process is more or less the same for all broker types with the only difference being the paperwork and fees.
Step 1: Register on the IRDAI Portal
Head to the IRDAI portal and complete the initial registration, which will lead to the generation of login credentials. You can find these credentials in your registered email id.
Step 2: Prepare Required Documentation
Compile necessary documents as cited in FORM-C of Schedule I of the IRDAI (Insurance Brokers) Regulations. Ensure the charter documents (MoA and AoA) reflect the insurance brokering as the main objective. Refer to the table above to learn more about the document.
Step 3: Submit Application
Now it is time to fill out the prescribed application i.e. FORM B-Schedule I of the IRDAI (Insurance Brokers) Regulations. Once done, pay the given fee based on the selected broker type.
- Direct Broker: ₹25,000
- Reinsurance Broker: ₹50,000
- Composite Broker: ₹75,000
Step 4: Pay Additional Fees Upon Approval
After receiving in-principal approval, pay an additional fee as shown in the table:
| Type of Broker | New Registration Fee | Renewal Fee | Validity | |
| Direct Broker | ₹50,000 | ₹1,00,000 | 3 years | |
| Reinsurance Broker | ₹1,50,000 | ₹3,00,000 | 3 years | |
| Composite Broker | ₹2,50,000 | ₹5,00,000 | 3 years |
Step 5: Meet Infrastructure Requirements
Upon fee submission, it is time to intact the operational resources, which means ensuring apt office space, skilled professionals, IT infrastructure, etc. Appoint at least two qualified persons for brokering life and general insurance businesses.
Step 6: Submit Compliance and Additional Information
IRDAI may prompt the applicant to provide clarification or additional documents. Do the needful as advised and in the stipulated timeline to ensure hassle-free processing. Typically, the authority confers 30 days timeline for responding.
Step 7: Obtain Professional Indemnity Insurance
Secure a professional indemnity insurance cover as per Schedule II – Form S of the IRDAI regulations. Newly registered brokers must acquire this insurance within 12 months of receiving their certificate.
Step 8: Receive Certificate of Registration
Once IRDAI confirms compliance with the regulations, an in-principal approval is granted. The Certificate of Registration is issued after final verification and adherence to the specified code of conduct.
Conclusion
As it is evident from above, the road to the insurance brokering business is filled with complications and legal uncertainties. Proper knowledge and apt documentation pave the foundation for a successful process concerning insurance broker registration. Any negligence could lead to unexpected delays or even cancellation. That‘s why it is advisable to proceed under the expert’s supervision. Speaking of expertise, Adviso sits at the forefront of licensing affairs. Whether you need prompt government approval or a compliance-intensive license, like IRDAI registration, Adviso will get the job done seamlessly.
