Documents required for Insurance Broker License registration in India

April 11, 2023
Registrationwala

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Documents required for Insurance Broker License registration in India

Documents required for Insurance Broker License registration in India

April 11, 2023

Registrationwala

You all must be aware of the Insurance Broker businesses in India. These are the insurance intermediaries operating in the Insurance Sector to aid in facilitating policies to the end policy seekers. The Insurance Broking Company aggregates such policies from reputed Insurers. Such facilitation requires the Broker to apply for the requisite Insurance Broker license from the IRDAI.

Documents Checklist for Broker License Registration

If you wish to avail of such licenses from the Insurance Regulatory Authority, then you must file an application for Broker registration along with the requisite Documentation. Here, Documentation is extremely important as it aids the applicant in ensuring the authenticity of the filed application to the IRDAI official. In this article, we have detailed the requisite documents to be arranged by the Insurance Broker applicant for proper Broker registration application filing

1. Memorandum of Association (MoA)/Article of Association (AoA)

Certified copy of Memorandum of Association (MoA) and Article of Association (AoA)
Suppose the applicant has applied for the direct broker license. In that case, the main object of the applicant is "To act as a Direct Broker under the IRDA (Insurance Brokers) Regulations, 2018, as amended from time to time."
Suppose the applicant has applied for the reinsurance broker license. In that case, the main object of the applicant is "To act as a Reinsurance Broker under the IRDA (Insurance Brokers) Regulations, 2018, as amended from time to time."
Suppose the applicant has applied for the composite broker license. In that case, the main object of the applicant is "To act as a Composite Broker under the IRDA (Insurance Brokers) Regulations, 2018, as amended from time to time."
The AoA of the entity should not provide for
- Issuance of shares other than equity and/or with differential voting rights.
- Allotment of shares in consideration other than cash.

In case the AoA of an entity provides for any of the above, it is advised to amend it suitably kindly.

2. Promoters/Partners/Shareholders

Certified copy of shareholders agreement (if applicable)
If the applicant entity is a Private Limited Company, a certificate issued by the Chartered Accountant on the overall shareholding structure of the applicant entity certifying the
- Names of all the shareholders
- Date/s of allotments of shares made to each of them
- Date-wise numbers of shares allotted
- Total number of shares held by each of the shareholders
- Percentage of the total shareholding of the entity
- Share certificate numbers and folio numbers along with the authorized
- Paid-up capital of the applicant entity
If the applicant entity is a Limited Liability Partnership, a certificate issued by the Chartered Accountant on the overall partnership structure of the applicant entity certifying the
- Names of member-partners in the LLP
- Percentage of contribution in the total partnership of the entity along with the authorized
- Paid-up capital of the applicant entity.
If the promoter is a company,
- A copy of the Board Resolution permitting the company to invest in the applicant entity
- Last three years' annual reports
- Net worth certificate of the promoting company.
If the shareholder is an individual,
- Copy of the last three years Income Tax Returns and their computation
- A Chartered Accountant should issue the net worth certificate just before investing in the applicant entity with its computation.
A self-declaration for promoters/shareholders/partners that the funds being invested as equity capital are out of their earnings or savings and not out of borrowings.

3. Applicant Entity

Form F & G of IRDAI (Insurance Brokers) Regulations of 2018, about the applicant company's directors, principal officers, and key management personnel
Principal Officer to submit a declaration that the applicant (directors/partners, principal Officer, and key management personnel of the company) are not suffering from any disqualifications specified under section 42 D of the Act
Details of the infrastructure, including IT infrastructure along with supporting evidence thereof like ownership/lease agreement papers about the office space/equipment/trained manpower, etc., for the registered office with the photographs of premises and the future planning for opening a branch office at various locations in the country and the estimated time frame
Projection of administrative expenses, salaries, wages, and other expenses, draw the revenue account, the profit & loss account, and the balance sheet for the projected 3 years
An organization chart gives a complete picture of the company's activities like IT, underwriting, risk assessment, claims settlement, marketing, accounts, back office, etc.
List of experienced personnel inducted from insurance backgrounds with good knowledge and experience in risk assessment, underwriting, claims management, etc. A detailed CV, copies of educational qualifications, and the appointment/joining letters of the selected people
Form O of IRDAI (Insurance Brokers) Regulations, 2018
Any other information is relevant to the nature of services rendered by the applicant entity for the growth and promotion of the insurance business
Any other requirement as deemed necessary by the Authority

4. Registration Processing Fee for Insurance Broker license registration

The application fee for license registration of

A Direct Insurance Broker is 25 thousand rupees
A Reinsurance Insurance Broker is 50 thousand rupees
A Composite Insurance Broker is 75 thousand rupees

5. Paid-up capital requirement for Insurance Broker license registration

The capital requirement for the registration of

A direct broker license is 75 lakhs rupees
A reinsurance broker license is 4 crores rupees
A composite broker license is 5 crores rupees

6. Net worth Recruitment for Insurance Broker license registration

The net worth requirement for registration of a Direct broker license is 50 lakh rupees
The net worth requirement for registration of a Reinsurance broker license is 2 crores rupees
The net worth requirement for registration of a Composite broker license is 2.5 crores rupees

7. Deposit Requirements for Insurance Broker license registration

Every direct insurance broker shall keep the deposit of 10 lakh rupees with any scheduled bank, and the deposit shall have a lien with the Authority.
Every reinsurance broker or composite broker shall keep 10 percent of the minimum capital/contribution for reinsurance or composite broker in fixed deposit, which shall not be released to them without the prior written permission of the Authority.

Get your Insurance Broker License with Registrationwala

If you want to complete Insurance Broker Registration but are unsure which type of broker license will be correct for you, you can connect with us at Registrationwala, and our team of experts will contact you.