Qualification Requirements for Insurance Broker License in India
Insurance Brokers are corporate entities that behave as an intermediary between the Insurers and the Insured. They facilitate the policy to the needful Insured from the capable Insurance Companies. To run a business like an Insurance Broker, the applicant must apply for the requisite permit from the IRDAI. The IRDAI has prescribed certain requirements for getting an Insurance Broker License in India.The Insurance Broker License validity is typically of three years, after which the licensee can apply for the License renewal procedure.
The Broker must get registered with the IRDAI by registering on the portal. The portal will generate a username and password and send it to the applicant on his registered email id. But before applying for the Insurance Broker certification, the applicant must observe the Insurance Broker License requirements per the IRDAI's directives. Let us see them one by one.
Eligible Corporates as Insurance Brokers
The following can be registered under the Insurance Broker License:
Capital Requirements for Insurance Broker License
To apply for Insurance Broker License in India, the applicant must conform to the capital requirements as required by the IRDAI:
How must an Insurance Broker maintain his Net Worth?
Let us explain the meaning of net worth here. The net worth is defined as the cumulative bank bond that must be maintained by an Insurance Broker applying before applying for the requisite license. The proper meaning is defined in the Companies Act 2013.
The net worth of an Insurance Broker must be maintained at all times during the registration certificate procedure and not fall below the following:
If the Broker falls for non-compliance with the stated regulations, it must immediately restore the net worth to the given limits above compliance. The Broker must also submit to the Authority a net worth certificate. Such a certificate must be authenticated by an Auditor every half-year.
Deposit Maintenance at Banks
Before the commencement of the Broker Business, every Broker applicant must ensure the deposit's maintenance with the scheduled bank. The deposited sum must be:
Office Facility of an Insurance Broker
The Insurance Broker License applicant must build the necessary infrastructure for dispensing the brokering services to the Insurers as well as the Insured:
For more on the Insurance Broker eligibility requirements, as well as License renewal, you can refer to the IRDAI experts at Registrationwala.