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Insurance Broker License

An Insurance Broker License is a statutory authorization granted by the IRDAI that permits an entity to act as an intermediary, solicitor, and negotiator of insurance for its clients. This license is governed by the IRDAI (Insurance Brokers) Regulations, 2018, which categorize brokers based on their scope of operations: Direct Brokers (Life, General, or both), Reinsurance Brokers, and Composite Brokers (handling both direct and reinsurance).

The primary objective of a licensed broker is to provide expert risk assessment and tailor-made insurance solutions by comparing products across multiple insurance companies. The registration process is designed to ensure that only financially stable and technically competent entities enter the market. It involves a multi-staged vetting process where the regulator assesses the “Fit and Proper” status of the promoters, the professional qualifications of the Principal Officer, and the robustness of the business infrastructure. A broker license not only validates the entity’s legal standing but also mandates a high standard of code of conduct and policyholder protection

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We Provide Tailored Insurance Broker License Solutions

We specialize in tailored insurance broker license solutions, navigating legal complexities with precision and expertise to ensure seamless compliance. Our experienced team guides you through every stage, from document preparation to filing, providing personalized assistance and alleviating administrative burdens.
Trust us to streamline your license acquisition journey, allowing you to focus on your business goals while we handle the process efficiently and transparently.

Requirements and Eligibility Criteria for Insurance Broker License

  • Applicant must be a Company or LLP or Cooperative Society Registered under Specific Act
  • Applicant must satisfy criteria of net worth and minimum paid up capital requirement
  • It must possess a specified educational qualification and must complete desired training & passed broker examination conducted by National Insurance Academy.
  • The entity must employ at least two individuals who have the requisite qualifications and training to solicit insurance business

Documentation Needed for Insurance Broker License

  • Certified copies of the Memorandum of Association (MOA) and Articles of Association (AOA).
  • Audited financial statements and Net Worth Certificate for the last three years
  • Detailed CVs, photographs, and "Fit and Proper" declarations (Form G) for all Directors, Partners, and the Principal Officer.
  • A detailed three-year business projection including organizational structure, marketing strategy, and financial estimates
  • Lease agreement or ownership documents for the office space, along with a description of the IT infrastructure and equipment
  • Evidence of the mandatory deposit (₹10 Lakh for Direct Brokers) maintained with a scheduled bank
  • Other Supporting Documents

Frequently Asked Questions

An agent represents one specific insurance company. In contrast, an insurance broker represents the client and is authorized to sell products from all insurance companies registered with the IRDAI.

Direct Broker: Handles life, general, or both for clients within India.
Reinsurance Broker: Negotiates reinsurance contracts between insurers and reinsurers.
Composite Broker: Licensed to perform both direct and reinsurance broking.

Only Public or Private Limited Companies, Limited Liability Partnerships (LLPs) with no foreign partners, or Cooperative Societies are eligible. Individuals cannot apply for this license

Yes, but it must amend its Memorandum of Association (MOA) to make insurance broking the “Main Object” and obtain a No Objection Certificate (NOC) from the IRDAI first.

Yes. The company name must include the words “Insurance Broker,” “Insurance Brokers,” or “Insurance Broking” to clearly identify its licensed activity.

The minimum paid-up capital required is ₹75 Lakh.

A Composite Broker requires a minimum paid-up capital of ₹5 Crore.

Brokers must maintain a minimum net worth at all times (₹50 Lakh for Direct Brokers and 50% of capital for others). This is audited twice a year.

 

Yes. A Direct Broker must maintain a fixed deposit of ₹10 Lakh with a lien marked in favor of the IRDAI. Reinsurance and Composite brokers must deposit 10% of their capital.

For a Direct Broker, the application fee is ₹25,000 and the registration fee (upon approval) is ₹50,000. These vary for Reinsurance and Composite categories.

The PO is a key management person responsible for the company’s activities. They must meet specific educational criteria and pass the IRDAI-mandated broker exam

The PO must undergo 50 hours of theoretical and practical training from an IRDAI-approved institution and pass the certifying exam.

 

A broking firm must employ at least two “Broker Qualified Persons” who have completed the necessary training and passed the exam to solicit insurance business.

It is a mandatory insurance policy that brokers must buy to protect against legal liabilities arising from errors, omissions, or negligence in their professional services.

No. Brokers are strictly prohibited from collecting premiums in cash. Payments must be made directly by the client to the insurance company.

Advantages of Insurance Broker License

Multi-Insurer Access

Brokers can collaborate with all registered Life, General, and Health insurance companies, providing clients with the best market rates and coverage.

Unbiased Client Advocacy

Since brokers represent the client, they build higher levels of trust and long-term relationships, which is essential for brand building and retention.

Revenue Diversification

Brokers earn brokerage commissions across diverse product lines and can also provide claim consultancy and risk management services

Professional Indemnity

Brokers are required to have Professional Indemnity Insurance, which protects the business against legal liabilities arising from professional negligence

Market Authority

Holding an IRDAI license serves as a mark of excellence and compliance, making it easier to acquire high-net-worth

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