IRDAI IMF Registration Process – Insurance Marketing Firm License
The insurance sector has been instrumental to the nation’s success and economic growth. Accounting for over 4% of India’s GDP, the insurance sector offers budding entrepreneurs more stability and growth potential. Among all business models in this sector, IMF has emerged as the most promising one. IMF i.e. Insurance Marketing Firms offer diverse insurance products to individuals in various life stages. It aims to augment the reach of insurance products through hassle-free accessibility. This article seeks to break down the legalities of this business model, giving clarity on eligibility criteria, documents, and processes.
What is an Insurance Marketing Firm (IMF)?
An Insurance Marketing Firm (IMF) falls under the ambit of the (Registration of Insurance Marketing Firm) Regulations, 2015, and it requires the approval of IRDAI i.e. Insurance Regulatory and Development Authority of India. Being a one-stop window for diverse insurance and financial products, IMF is envisioned as a robust distribution channel for insurance-seekers.
Key Features of IMFs:
- District-Wise Registration: IMFs can cater to as many as three states within a state when it comes to operation.
- Diverse Offerings: IMFs are allowed to offer products from two life insurance, two general insurances, and three health insurance firms concurrently alongside products offered by Export Credit Guarantee Corporation Ltd. (ECGC) and Agriculture Insurance Company of India Ltd. (AIC).
- Additional Financial Products: After securing required approvals, IMFs can indulge with products offered by SEBI, Reserve Bank, and other competent authorities.
Check out our stories: Top 7 IRDAI License Services in India
Open Architecture Model of IMFs
IMFs aim to reinforce diversity in product offerings by following the open architecture model.
- Life Insurance: IMFs can address diverse insurance products available in the Indian market by different companies.
- General Insurance: IMFs can deal with the products belonging to retail insurance.
- Health Insurance: IMFs are permitted to cater to almost all types of health insurance products.
This flexibility leads to a wider availability of insurance products, giving insurance-seekers a variety of choices.
IRDAI IMF Registration Process: A Step-by-Step Guide
The section below breaks down the process of securing IRDAI IMF registration:
Step 1: Obtain a No Objection Certificate (NOC)
The first step involves securing NOC from the IRDAI. It will help secure the approval from the Registrar of Companies (ROC). It is worth noting that the NOC will stay valid for 6 months from the issuance date. You can visit the IRDAI portal to apply for this NOC.
Step 2: Register on the IMF Portal
Visit the IRDAI portal to secure the credentials, which will be used to get access to the prescribed application namely, Form A.
Step 3: Fulfill Application Requirements
Fill out the prescribed application with legit information. Double-check everything you enter as any error or misleading information could delay the approval process. Once done, head to the payment page to submit a non-refundable of Rs 5000 via the IMF bank account. Do not forget to attach the required paperwork as discussed in the next section.
Key Documents Required for IRDAI IMF Registration
To complete the registration process, the following documents must be submitted:
| Category | Details |
| Declarations | Fit and Proper criteria declaration from principal officers, directors, or managing partners. |
| Qualification Proofs | – Certificates for the Principal Officer (PO) and Insurance Sales Persons (ISP). |
| – Address proof for ISPs within the registration state. | |
| Compliance Undertaking | Statement from the Principal Officer ensuring regulatory adherence. |
| Net Worth Certificate | Issued by a Chartered Accountant confirming net worth as per IRDAI guidelines. |
| Bank Statement | Supporting the net worth certificate. |
| Incorporation Documents | – Memorandum of Association (MoA) and Articles of Association (AoA) for companies. |
| – LLP Agreement for LLPs. | |
| Business Plan | A three-year business projection with expected activity volume and income. |
| Infrastructure Proofs | – Office space agreements (rental/sale deed). |
| – Equipment and manpower details with photographs. | |
| Insurance Tie-Up Letters | Consent letters from at least one insurance company. |
How Adviso Can Help
Addressing the compliances conceding IRDAI IMF registration process can be an uphill task. Since authority is quite stringent when it comes to approval, you have no other option but to rethink every move you take. With the support of a professional firm viz. Advisor, you can overcome such obstacles with utmost ease and clarity. Advisor ensures a seamless experience by:
- Simplifying the application process.
- Helping you prepare and organize the necessary documentation.
- Providing strategic advice to meet IRDAI compliance requirements.
- Ensuring a successful registration with minimal delays.
Partnering with Adviso means you are no longer required to address strict and complex norms. The professionals at Adviso know what it takes to secure the IRDAI approval in a seamless and timely manner.
FAQs on IRDAI IMF Registration Process
1. What is the primary purpose of an IMF?
An Insurance Marketing Firm (IMF) aims to distribute diverse insurance and financial products from a single window, amplifying market reach and options for customers.
2. How long does it take to obtain IMF registration?
The timeline varies based on the document’s accuracy and compliance threshold.
3. What are the financial requirements for registration?
IMFs must adhere to the IRDAI’s norms concerning a minimum net worth. The validation of the same is paramount by the Chartered Accountant.
4. Can an IMF operate in multiple states?
No, IMFs can pick as many as three districts within a single state for registration purposes.
5. What additional financial products can IMFs distribute?
Apart from insurance and financial products, IMFs can deal with products offered by the RBI, SEBI, and PFRDA.
Conclusion
Securing an IRDAI approval for registering an Insurance Marketing Firm (IMF) is paramount. It is the golden ticket to the distribution business of insurance and financial products. From obtaining an NOC to fulfilling documentation requirements, the process demands precision and adherence to regulatory guidelines.
Also Read: Insurance Web Aggregator: A Complete Guide for Beginner
