Insurance Company Registration Process and Documentation

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Insurance Company Registration Process and Documentation

The insurance industry in India has been growing rapidly, as more and more individuals and entities have started realizing the significance of insurance policies. In the past decade, the insurance industry in India has grown significantly and is expected to grow further in the decades to come. According to Statista Platform, the insurance market in India is expected to reach a market size (gross written premium) of US $210.60bn in 2024. 

Insurance companies provide services to meet the needs of individual households and business entities. The stability of the economy depends on the availability of insurance services, which also has the potential to encourage business participants to take aggravated risks. If you want to start an insurance business in India, it’s better to start it now instead of after a few years when the competition grows even more in the insurance market. If you want to get insurance company registration easily, get in touch with Registrationwala company registration consultants.

Insurance Company: Meaning

Insurance companies are financial institutions that provide various insurance policies which safeguard financial interests of individuals and entities in case of loss and damage. These companies make money from the policy premiums paid by their clients and then reinvesting those premiums into interest-generating assets.. 

Registration of Insurance Companies with IRDAI

Insurance companies are registered as general insurance companies, life insurance insurance, health insurance companies and insurance marketing firms with the Insurance Regulatory and Development Authority of India (IRDAI).  

The registration of insurance companies is regulated under Insurance Regulatory and Development Authority of India (Registration of Indian Insurance Companies) (Seventh Amendment) Regulation, 2016. No company in India can provide insurance policies without having a valid IRDAI license. 

Eligibility Criteria for Insurance Company License

In order to get your company registered as an insurance company, you must make sure you meet the following eligibility requirements:

Any company amongst the prescribed class of companies mentioned below:

• Any IRDA-recognized company 

• Any LLP registered under LLP Act of 2008

• Any company that was previously an insurance provider before the commencement of Act, given that only a maximum of 26% of the paid-up capital is allowed to be held by a foreign company.

• The registered name of an LLP that is an Insurance Marketing Firm (IMF) must include the words "Insurance Marketing Firm”.

Ineligibility for Insurance Company Registration 

In case of the following conditions, the applicant entity will not be eligible for insurance company registration with IRDAI:

• When the applicant company’s name does not include the terms “insurance company” or “assurance company” as a suffix.

• If the application is withdrawn by the applicant or gets canceled by IRDAI.

• If IRDAI rejects the prerequisite of the application at any point during the previous 5 financial years, on the date of claiming the registration application.

• If the foreign investors or Indian promoters leave the project for any reason.

Documents Required for Insurance Company Registration

The insurance company registration process takes place in the following manner:

• Certificate of Incorporation

• Memorandum of Association & Articles of Association

• Information of directors such as their name, address, and occupation

• Statement of a class of insurance

• Replica of certifying annual report of Indian promoters and Foreign investors for previous five years

• Photocopy of certified shareholding agreement between Indian promoters and foreign investors of the candidate or applicant

• 5-year business strategy accepted by company directors

• Statement showing source of share capital contribution

• Details of the joint venture, such as company name, address, director’s name, etc.

• In a promoter company, you must submit the previous record of the regulatory interventions and restrictive directions.

Procedure for Obtaining Insurance License

If you want your company to provide insurance services, then you must file an application with the insurance regulator IRDA. It is a mandatory requirement. The procedure for obtaining IRDAI insurance license has to be done in the following way:

• According to IRDAI portal, an applicant who desires to carry on insurance business in India has to make a requisition for registration application in Form IRDA/R1. Along with the applicant, all the required documents must be submitted.

• The applicant entity can file an application for Life Insurance or General Insurance company or Health Insurance Business exclusively, or Reinsurance Business.

• Once the application has been received, IRDAI may ask for additional information or clarification related to the application.

• Once satisfied with the application, the authority will grant approval and then the applicant will have to file further applications using Form IRDAI/R2 for grant of IRDAI certificate of registration.

• If the authority rejects the application for issuance of a requisition for a registration form, it shall record the reason in writing for the same.

• If the applicant is aggrieved by the decision, they shall file an appeal to the Securities Appellate Tribunal. It must be done within 30 days since the rejection communication was received.

Reasons for Cancellation of IRDAI Certificate

An insurance company’s license can be canceled by the Insurance Regulatory and Development Authority (IRDAI) in case of the following reasons:

• If the insurance company conducts its business in a way that is considered unjust and unfair to the interests of the policyholders.

• If the insurance company fails to cooperate regarding an inquiry made by an authority.

• If the insurance company fails to provide information required by authorities concerning the insurance business. 

• If the insurance company is involved in unfair trade practices and/or manipulative activities.

• If the insurance company doesn’t submit the periodic return as necessitated by the authority.

• If the insurer fails to invest in infrastructure or the social sector as mentioned under sub-section (1A) of Section 27D.

Renewal of Insurance Company Registration

The IRDAI insurance must be renewed in order to continue providing insurance services to clients. The IRDA registration stays valid for one year. This implies that it needs to be renewed annually. The application for renewal needs to be turned in by the 31st December of the year preceding the renewal, together with the prescribed fees.

Obtain IRDAI License with Registrationwala’s Assistance

Authorization from the Insurance Regulatory and Development Authority of India (IRDAI) is a mandatory requirement to start an insurance company. By reaching out to Registrationwala consultant, you can obtain IRDAI license for insurance easily. We will guide you through the entire process, so you don’t have to stress about making any mistakes.

We will help you to prepare all the required documents for IRDA registration, such as MoA, AoA, Certificate of Incorporation, etc. We’ll submit your application with the authority on your behalf, after making sure everything’s in order! 

Once the application has been submitted, it will be carefully scrutinized by IRDAI. During this period, our consultants at Registrationwala will keep you updated and help with any additional details or documents asked by IRDAI. After your application receives the authority’s approval, we will guide you regarding the next steps to ensure your insurance company complies with all rules and regulations.

With Registrationwala’s support and guidance, getting your insurance company license from IRDAI becomes simpler and much faster!

FAQs about Insurance Company Certificate

Q1. Who issues Insurance Company License to businesses in India?

A. The Insurance Development & Regulatory Authority of India (IRDAI) issues the insurance company license to businesses in India.

Q2. Does IRDAI license comes with lifetime validity?

A. No, it does not come with lifetime validity. Therefore, it must be renewed in a timely manner.

Q3. Can LLPs do insurance business?

A. Yes, LLPs can do insurance business as long as they’re authorized by IRDAI.

Q4. Can you apply for IRDAI registration online?

A. Yes, you can apply for IRDAI registration online by visiting the official IRDAI website.

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