What is Insurance Broker License?
As per the Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018, an insurance broker is referred to 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 an insurance broker, one needs to obtain an Insurance Broker license.
Thus, to become an insurance broker, an 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.
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 policyholders in paying their insurance premiums
As per the IRDA regulations for an insurance broker, the Direct brokers are further categorized in three categories:
Reinsurance brokers are those entities that after getting the IRDA broker registration, provide act as an intermediary 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.
Composite Brokers, as the name subject are an amalgamation of direct and reinsurance brokers. They provide direct insurance and reinsurance services in India.
Only a company, a cooperative society or an LLP can apply for the insurance broker license.
Other than that, the following are the insurance broker requirements in terms of financial, net-worth and deposit.
Minimum financial/minimum capital requirement for an insurance broker license
Following is the paid-up capital contribution requirement for each type of insurance broker:
Net worth requirement
When the applicant is applying for an insurance broker license online, at the time he must adhere to the following net worth requirements:
Following are the deposit requirement criteria, which comes to the surface when the applicant has to submit an amount to the scheduled bank for the insurance broker license:
Once you meet the insurance broker license requirements, you can move ahead with the procedure to acquire the license.
Insurance broker requirements pertaining to the documentations that have to be submitted alongside a duly filled application are as follows:
Following is the procedure the applicant has to adhere to in order to obtain the license to become an insurance broker.
We provide end to end assistance for Insurance Broker License needs:
· We file your application for Insurance Broker License
· We submit the application
· We conduct the follow up with the department
· We provide post license services as well.
Simply put, we guide your hand through each and every step of getting Insurance Broker License in India.
Thus, reach out to us if you want to become an insurance broker in India.