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Become an Insurance Broker with Insurance Broker License

An insurance broker is a person or a business entity who implements their knowledge of insurance to act as an intermediary between customers and insurance companies. Insurance broker license is the required permit to become one. Consult with our experts for insurance broker license.

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Insurance Broker License

What is an Insurance Broker License?

An insurance broker is referred to a person or a business entity who implements their knowledge about the insurance industry to act as an intermediary between those who are seeking insurance policies and those who are selling it.

However, in order to become a insurance broker, one needs to obtain the Insurance Broker license.

Thus, to become an insurance broker, online application has to be filed. That application is provided by the IRDA portal. Registrationwala is a team of professional business license consultants. They will hold your hand as you walk through the process of acquiring the insurance broker license.

What are the types of insurance broker

To become a licensed insurance agent or an insurance broker, you need to know about the types of insurance brokers that are present. Categorically, one can split an insurance broker into three types:

  1. Direct Insurance Brokers
  2. Reinsurance Brokers
  3. Composite Insurance brokers

Direct Insurance Brokers

Direct insurance brokers are those who after getting the insurance broker register, act as an intermediary between reinsurers and the customers. It provides the following services:

  1. Providing details about several insurance brokers in the market.
  2. Assisting clients in choosing the policies as per their requirements
  3. Assisting the clients in opening their E insurance accounts
  4. assisting the policy holders in paying their insurance premiums

Reinsurance Brokers

Reinsurance brokers are those entities that after getting the IRDA broker registration, provide act as an intermediaries between reinsurers and insurers. They provide services such as:

  1. Maintaining and watching over the stats of the reinsurance market
  2. soliciting products related to reinsurance
  3. Negotiating on behalf of the client to the insurance companies.

What is the eligibility criteria to obtain an insurance broker license?

Only  company, a cooperative society or an LLP can apply for the insurance broker license.

Other than that, following are the insurance broker requirements in terms of financial, net-worth and deposit.

Minimum financial/minimum capital requirement for insurance broker license

Following is the paid up capital contribution requirement for each types of insurance brokers:

  1. For direct brokers, the minimum requirement is INR 75 Lakhs
  2. For reinsurance brokers, the minimum requirement is INR 4 Crores
  3. For composite brokers, the minimum requirement is INR 5 Crores

Net worth requirement

When the applicant is applying for insurance broker license online, at the time he must adhere to the following net worth requirements:

  1. INR 50 Lakh for direct broker
  2. In case of reinsurance and composite brokers, 50 percent of minimum capital is required.

Deposit requirement

Following are the deposit requirement criteria, which comes to surface when the applicant has to submit an amount to the scheduled bank for the insurance broker license:

  1. In case of Direct broker, a 10 lakh rupees deposit is required
  2. In case of reinsurance and composite brokers, 10% of the minimum capital requirement is required.

Once you meet the insurance broker license requirements, you can move ahead with the procedure to acquire the license.

Procedure of get the insurance broker license

Following is the procedure the applicant has to adhere to in order to obtain the license to become an insurance broker.

  1. Complete the insurance broker qualifications required for the license.
  2. Filing the application via FORM B
  3. Alongside the form, documents have to be submitted
  4. The IRDA will then intimate the applicant, at which point the applicant has to adhere to the additional requirements.
  5. Submission of insurance broker license cost.
  6. Finally, the IRDA bestows upon the applicant, the insurance broker license.

Documents required to obtain IRDA insurance broker license

Insurance broker requirements pertaining to the documentations that have to be submitted alongside a duly filled application are as follows:

  1. Certificate of incorporation of the company/LLP agreement or a Cooperative Society.
  2. Memorandum of Association will be required if the applicant is a company
  3. Principal officer details as per the instructions given by the IRDA. The principal officer must obtain the necessary insurance broker qualifications before applying for the license.
  4. A duly filled declaration expressing that the principal officer and his or her partners don’t come under those who are excluded from applying for the insurance broker license.
  5. List of two agents with the required insurance broker qualifications
  6. Bank account details of the company/cooperative society/LLP
  7. Shareholder’s list
  8. Principal bankers details
  9. Copy of the board resolution
  10. Balance sheet of the company.

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