What is a Corporate Agent License in India?

As per the IRDAI  (Insurance Regulatory Development Authority of India) regulations of 2015, the registration of Corporate Insurance agents has been made mandatory. The regulations came into force on the 1st of April 2016, and since then, multiple corporate agents have been registered under the aforementioned provision.

Corporate Agents are companies, cooperative societies, LLPs, NGOs, Rural banks, or Micro Finance Lending Organizations that participate in soliciting, producing, or servicing the insurance business of life insurers, general insurers, and health insurers. 

Types of Corporate Agents in India

There are 4 types of Corporate Agents in India

1. Corporate Agent (Life): A Corporate Agent for Life Insurance can have arrangements with a maximum of three life insurers to solicit, procure and service their insurance products.
2. Corporate Agent (General): A Corporate Agent for General Insurance can have arrangements with a maximum of three general insurers to solicit, procure and service their insurance products.
3. Corporate Agent (Health): A Corporate for Health Insurance can have arrangements with a maximum of three health insurers to solicit, procure and service their insurance products.
4. Corporate Agent (Composite): In the case of a Corporate Agent for Composite insurance, the above-mentioned conditions will apply. 

Any change in the arrangement with the insurance companies can be done only with prior approval from the Authority and with suitable arrangements for servicing existing policyholders.

Eligibility Criteria for Corporate Agent Registration in India

The following are the conditions that the corporate agent must meet for getting the registration:

1. The applicant should be any of the following entities:
   • A company registered as per the Companies Act
   • A Limited Liability Partnership registered under the LLP Act
   • A Co-operative Society registered under the Co-operative Societies Act. 
   • A regional rural bank was established under Section 3 of the Regional Rural Banks Act. 
   • An NGO or a Micro Lending Finance Organization covered under Cooperative Societies Act. 
2. The applicant must have the necessary infrastructure to roll out their activities. It consists of:
   • Adequately trained manpower
   • Adequate Office Space
   • Adequate Equipment
3. The applicant entity's principal officer should be a graduate and should have completed at least 50 hours of training from an institution approved by IRDA. 
4. The applicant should not have violated any code of conduct mentioned in the regulations. 
5. The applicant should have been declared "Fit and Proper" by the appropriate authority. 

Net worth Requirements:

• The applicant must have minimum share capital or contribution of INR 50 Lakh.

Documents required for Corporate Agent Registration in India

The following documents must  be submitted along with the corporate agent license registration application:

• Certificate of Incorporation or the LLP/Cooperative SocietyCompanies as per their respective administrative acts.
• Details of the proposed or existing branch offices. 
• Details of the principal officer of the applicant organization. 
• Details of the directors/partners of the applicant organization
• Organizational chart showing functional responsibilities of each department of the applicant organization. 
• Networth Certificate of the applicant certified by a Chartered Accountant. 
• Declaration of Fit and Proper Criteria
• Receipt of the application fee

Process of Corporate Agent Registration in India

The process of registering the corporate agents with the IRDAI for acting as exclusively insurance intermediaries is as follows:

1. Document preparation.
2. Filing the application in online mode and paying the requisite application fee.
3. Complying with the additional demands of the IRDAI (if the authority asks for them)
4. Acquiring the Certificate of registration for the corporate agent.

Corporate Agent License Fee Structure

IRDA Corporate Agent registration fee

• A corporate agent must pay a non-refundable application fee of ten thousand rupees plus applicable taxes at the time of license registration or license renewal.
• The fee must be payable by an Account payee draft in favour of India's Insurance Regulator and Development Authority.
• The fee can also be payable by recognized electronic funds transfer to India's Insurance Regulatory and Development Authority.
• No application will be entertained without the application fee.
• After the reception Corporate Agent certificate of registration from the Authority, the newly registered Corporate Agent must pay a fee of 25 thousand rupees plus applicable taxes within 15 days of the reception.
• On receipt of the fee and satisfactory compliance with terms and conditions for the grant of registration, the Authority will then grant the registration to act as a corporate agent under the category for which an application is made.
• A corporate agent desirous of applying for renewal must make an application for renewal in the prescribed format along with a fee of 25 thousand rupees plus applicable taxes.

License Validity

The Certificate of registration for a Corporate Agent is valid for a period of three years from the date of its issue. However, this validity can be compromised before the completion of three years unless the Corporate Agent registration certificate is revoked or cancelled for violation of regulations set by the Authority.

License Renewal

• A licensed corporate agent can, within thirty days before the registration expiry, make an application in Form A along with the requisite fee to the Authority for registration renewal.
• If the application reaches the Authority later than the above specified period, but before the actual expiry of the current registration, an additional fee of one hundred rupees plus applicable taxes will be payable to the Authority.
• Suppose the application reaches the Authority after the license expiry, and the applicant presents sufficient reasons in writing to the Authority for the delay it accepts. In that case, the applicant will accept the application for license renewal with the additional fee of seven hundred and fifty rupees, plus applicable taxes.
• A corporate agency license can submit the application for license renewal ninety days before the expiry of the license.
• The appointed principal officer and specified persons by the firm must complete at least twenty-five hours of theoretical and practical training empanelled by an approved institution before seeking a renewal of registration.
• The Authority, on being satisfied with the filed application, will issue the renewed Certificate in Form C for three years.

Actions against unregistered Corporate Agent

• If any person acts as a corporate agent without holding a valid registration, the Authority will invoke against such a person penal action under the Act or related law for such violations.
• Suppose a company or firm or body corporate imposes as a Corporate Agent. In that case, every director, manager's secretary, or other company officer or body corporate' and every firm partner will be liable to be proceeded against.

Compliances

• A corporate agency license holder is permitted to solicit and service insurance business as specified in the set regulations by the IRDAI.
• A corporate agent license holder must comply with the provisions of the Insurance Regulatory and Development Authority Act, 1999 and the Regulations, Circulars, Guidelines and any other instructions issued by the Authority.
• A corporate agency license holder must inform the Authority in writing if any information or particulars previously submitted to the Authority by them are found to be false or misleading.
• A corporate agent license holder must take adequate steps for the redressal of grievances of its clients within 14 days of receipt of such complaint. It must also inform the Authority about the number, nature and other particulars of the complaints received in the format specified by the Authority.
• A corporate agent must solicit and procure a reasonable number of insurance policies commensurate with their resources and the number of specified persons they employ.
• A corporate agent license holder must maintain records in the format specified by the Authority, which will capture policy-wise and specified person-wise of the insurance. Each policy solicited by the corporate agent must be tagged to the specified person, except for those products which are simple, sold over the counter and specifically approved by the Authority.
• A corporate agency license holder must implement systems that allow regular access to insurance records and details.
• A corporate agent license holder must, under no circumstances, undertake multi-level marketing for solicitation of insurance products.
• A corporate agency license holder must comply with the Code of Conduct applicable to its directors, principal officer and specified persons.
• A corporate agent must maintain separate books of accounts for their corporate agency business.

Our Assistance in getting you Corporate Agent Registration in India

Registrationwala provides end-to-end assistance in matters of corporate agent registration. Our services include:

• Document Preparation
• Application filing
• Department follow-up
• Application monitoring

Reach out to Registrationwala if you wish to become a corporate agent.

FAQs About Corporate Agent

Q. What is a Corporate Agent in the Insurance market?

A. Corporate Agents are companies, cooperative societies, LLPs, NGOs, Rural banks, or Micro Finance Lending Organizations that participate in soliciting, producing, or servicing the insurance business of life insurers, general insurers, and health insurers. 

Q. Is it mandatory to get a Corporate Agent license in India?

A. As per the IRDAI  (Insurance Regulatory Development Authority of India) regulations of 2015, the registration of Corporate Insurance agents has been made mandatory. The regulations came into force on the 1st of April 2016, and since then, multiple corporate agents have been registered under the aforementioned provision.

Q. What are the types of Corporate Agent licenses in India?

A. There are 4 types of Corporate Agents in India:

1.Corporate Agent (Life): A Corporate Agent for Life Insurance can have arrangements with a maximum of three life insurers to solicit, procure and service their insurance products.

2. Corporate Agent (General): A Corporate Agent for General Insurance can have arrangements with a maximum of three general insurers to solicit, procure and service their insurance products.

3. Corporate Agent (Health): A Corporate for Health Insurance can have arrangements with a maximum of three health insurers to solicit, procure and service their insurance products.

4.Corporate Agent (Composite): In the case of a Corporate Agent for Composite insurance, the above-mentioned conditions will apply.

Q. Who can be an applicant for a corporate agent in insurance as per the Act?

A. The applicant must be any of the following entities:

• A company registered as per the Companies Act

• A Limited Liability Partnership registered under the LLP Act

• A Co-operative Society registered under the Cooperative Societies Act. 

• A regional rural bank was established under Section 3 of the Regional Rural Banks Act. 

• An NGO or a Micro Lending Finance Organization covered under Cooperative Societies Act. 

Q. What are the infrastructural requirements for setting up a Corporate Agent firm office?

A. The applicant must have the necessary infrastructure to roll out their CA activities. It consists of:

• Adequately trained manpower

• Adequate Office Space

• Adequate Equipment

Q. What is the net worth requirement for license registration of a Corporate Agent?

A. The applicant must have minimum share capital or contribution of INR 50 Lakh. 

Q. What are the required documents to be submitted along with the corporate insurance agent license registration application?

A. The following documents must  be submitted along with the corporate agent license registration application:

1. Certificate of Incorporation

2. Details of the proposed or existing branch offices

3. Details of the principal officer of the applicant organization. 

4. Details of the directors/partners of the applicant organization

5. Organizational chart showing functional responsibilities of each department of applicant organization. 

6. Networth Certificate of the applicant certified by a Chartered Accountant.

7. Declaration of Fit and Proper Criteria

8. Receipt of the application fee

Q. How to become a Corporate Insurance Agent in India?

A. The registration process of the corporate agents with the IRDAI for acting as exclusively insurance intermediaries is as follows:

• Document preparation.

• Filing the application in the online mode.

• Pay the requisite application fee.

• Complying with the additional demands of the IRDAI (if the Authority asks for them)

• Acquiring the Certificate of registration for the corporate agent. 

Q. What is the license processing fee of corporate agent in insurance?

A. A corporate agent must pay a non-refundable application fee of ten thousand rupees plus applicable taxes at the time of license registration or license renewal.

Q. What is the validity of the corporate insurance agent license?

A. The Certificate of registration for a Corporate Agent is valid for a period of three years from the date of its issue. However, this validity can be compromised before the completion of three years unless the Corporate Agent registration certificate is revoked or cancelled for violation of regulations set by the Authority.