Insurance Broker License Renewal
The insurance broker plays a vital role in augmenting client’s business and meeting customers’ needs for insurance. They bridge the gap between potential audiences seeking different insurance types and companies offering policies. The insurance brokers adhere to the IRDAI’s guidelines concerning registration, operation, and renewal. Speaking of renewal, a timely revival of the broker license before expiry is paramount to avoid stringent penalties, which may involve stiff monetary fines and a halt of business activities. On that note, let us understand the legalities around Insurance Broker License Renewal in detail.
Table illustrating details for Insurance Broker License Renewal
Insurance broker licenses stay valid for three years, after which they must be renewed before the deadline to ensure continuity. The process of Insurance Broker License Renewal involves application submission to the respective IRDAI portal alongside supporting paperwork.
The process concerning Insurance Broker License Renewal is more or less the same in all states with a few exceptions. With that being said, pay attention to the table below showing key details regarding the renewal of the broker license.
| Broker Type | Fine for Late Renewal | Renewal Due Date | Renewal Deadline | Cost of Renewal |
| Direct Broker (Life) | ₹750 (if within 60 days after expiry) | 30 days before expiry | Within 60 days after expiry | ₹1,00,000 for 3 years |
| Direct Broker (General) | ₹750 (if within 60 days after expiry) | 30 days before expiry | Within 60 days after expiry | ₹1,00,000 for 3 years |
| Direct Broker (Life & General) | ₹750 (if within 60 days after expiry) | 30 days before expiry | Within 60 days after expiry | ₹1,00,000 for 3 years |
| Reinsurance Broker | ₹750 (if within 60 days after expiry) | 30 days before expiry | Within 60 days after expiry | ₹3,00,000 for 3 years |
| Composite Broker | ₹750 (if within 60 days after expiry) | 30 days before expiry | Within 60 days after expiry | ₹5,00,000 for 3 years |
Notable pointers concerning Insurance Broker License Renewal
Before you proceed with renewal, keep the following pointers in mind to avert legal hassles:
- Furnish the completed filed renewal application to the concerned authority 30 days before the expiration arrives. Use FORM K of Schedule –I of the regulations for the license renewal.
- If the license violates the above timeline and the applicant applies for renewal before the actual expiry date, the payment amounting to Rs 100 should be paid to the authority during the application submission
- If the application for the expired license is furnished within 60 days of expiration, a fine of Rs 750 shall be imposed.
- The applications making their way to authority after this timeline would stand ineligible for renewal, preventing the company from pursuing business endeavors for one year as a penalty.
Steps for Insurance Broker License Renewal
- Head to the authority portal and sign in. If you lack an account, create one with valid credentials
- Explore the services section to find the renewal form viz. FORM K of Schedule-I).
- Enter the required details in the form and proceed to the next step
- Upload the supporting documents as cited below in the format recommended by the portal.
- Once done, head to the payment gateway to submit the applicable fee.
- The successful fee submission will mark the end of the application process. Make sure to note down reference number for tracking application progress.
- The authority shall vet the application and dossiers to identify errors or potential non-conformity.
- If the authority does not find any issue with the paperwork, the grant of license shall come into effect, allowing the company to continue their operation.
Document consideration for Insurance Broker License Renewal
- Renewal Application Form (FORM K of Schedule-I)
- Net Worth Certificate (certified by an auditor)
- Professional Indemnity Insurance Policy (valid throughout the registration period)
- Fit and Proper Certification (Schedule-I Form G)
- Details of Directors/Partners, Promoters, and Key Management Personnel
- Principal Officer Information (Schedule-I Form F)
- Training Certification for Employees
- Details of Statutory Auditors and Principal Bankers
- Infrastructure Details (office and IT infrastructure with supporting evidence)
- Grievance Handling Records
- Declaration of Compliance (from key management executive, principal officer, and directors)
- Fee Payment Receipt
Conclusion
Navigating the insurance broker license renewal process can be utterly overwhelming owing to stringent compliance and paperwork. To stay afloat and safe, you must have a thorough understanding of regulations concerning renewal.
If you find doing so daunting, seek guidance from a top-tier company like Adviso, which has been making waves since it entered the licensing and regulatory regimes.
After understanding the client’s requirements, our experts deliberately prepare their approach to secure the necessary approval in one go with zero hassle.
Read Our Article: Procedure For An Insurance Broker License (2024
