General Insurance Broker License Acquiring Qualifications

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General Insurance Broker License Acquiring Qualifications

General Insurance Broker License Acquiring Qualifications

Every company aspirant of being a General Insurance Broking license holder must conform to the state's eligibilities before applying for the Insurance Broker registration. There are different classes of Insurance available in the market. One of them is General Insurance. The General Insurance category usually includes car, motor, home, and health insurance.

Insurance Brokers dealing with these specific kinds of general insurance policies are known as General Insurance brokers in India. In this article, we have detailed to you some of the qualifications of a General Insurance Broker. Let us look at them one by one.

Insurance Broker License Verification

The IRDAI prescribes minimum requirements for attaining a General Insurance broker License. The Broker license applicant must ensure to register with the IRDAI on the portal with the requisite username and password, as generated by the system and sent to the user on their registered Email ID. Subsequently, the applicant can submit the application online by visiting the website www.irdabap.org.in .

The IRDAI accepts the application for General Broker's Registration only through online mode. After accepting the application, the Examiner will analyze the application and verify the mentioned claims. If the claims are found to be true, then the Authority will issue the required Insurance Broker license.

Corporate Structure of a General Insurance Broker License

Only the following entities can be registered as the General Insurance Broker License, such as:

• Company registered under the Companies Act of 2013
• Partnership registered under the Partnership Act of 2008
• Co-operative Society registered under the Co-operative Society Act of 1912
• Any Individual or Firm delegated to conduct its business as an Insurance Broker

Capital Requirements

The General Insurance Broker applicant must satisfy the requisite capital requirements before applying for the License:

• For the Direct Insurance Broker, the capital requirement is Rs. 75 Lakhs
• For the Re-Insurance Broker, the capital requirement is Rs. 4 Crores
• For the Composite Insurance Broker, the capital requirement is Rs. 5 Crores

Net Worth Requirements for General Insurance Broker License 

The meaning of Net Worth as per the Act's regulations is amended from time to time. Therefore, you must look closely.

• For the Direct Insurance Broker, the net worth requirement is Rs. 50 Lakhs
• For the Re-Insurance Broker, the net worth requirement is Rs. 2 Crores
• For the Composite Insurance Broker, the net worth requirement is Rs. 2.5 Crores

The Broker applicant must maintain their net worth at all times, and it must not, during the period of the Certificate of Registration, fall below:

• Rupees fifty lakh for Direct Insurance Broker
• Half of the minimum Capital Requirements or equivalent as per the regulations for the Reinsurance or Composite Insurance Brokers

The General Insurance Broker must submit a net worth certificate certified by an Auditor every six months to the IRDAI.

Insurance Broker Qualification

The Insurance Broker license applicant must ensure that at least two qualified persons have the necessary training to function as Insurance Brokers to conduct the required business in the insurance market. The applicant must ensure that the two qualified individuals have relevant and necessary qualifications in the General Insurance sector.

Also, the principal officer of the applicant’s business must also have the necessary qualifications. He must possess the educational certificate and skills for the General Insurance Broker business. A Principal Officer can be any of the key management executives of the applicant company with requisite experiences, such as:

• Whole-time Director
• Partner
• Officer

For more information on the General insurance broker registration requirements , connect with the Insurance experts at Registrationwala.

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