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Setup an Insurance Marketing Firm

As specified in regulation 3(a) of the Insurance regulatory and development authority of India, you can (and must) register your Insurance marketing firm to undertake insurance service activities. Registrationwala provides holistic services from application filing to department follow-up, ensuring that your Insurance marketing firm gets registered on time.

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Insurance Marketing Firm Process

Step 1
Documentation
Step 2
Application filing
Step 3
Application Assessment
Step 4
Grant of NOC to start Insurance Marketing firm

Insurance Marketing Firm in India

As specified in regulation 3(a) of the Insurance regulatory and development authority of India, you can (and must) register your Insurance marketing firm to undertake insurance service activities. 

What is an Insurance Marketing Firm?

An insurance marketing firm, as the name suggests, is a firm that markets insurance services. In the legal terms prescribed by the IRDA, an IMF or Insurance marketing firm is an entity with the permission to undertake insurance service activities.

An Insurance Marketing Firm provides the following categories of services:

  1. Procuring and Soliciting insurance policies: Per the IRDA regulations, an Insurance Marketing Firm has the permission to procure and solicit insurance services. There is virtually no limit to the number of insurers - insurance companies that it can engage with. As a marketing firm, the IMF can act as an intermediary, acting as a broker of insurance policies to act as a mediator between the insured and the insurer. 
  2. Providing Insurance Services: Insurance marketing firms have a unique power that allows them to establish strategic alliances with other insurance intermediaries such as surveyors and loss assessors, Insurance repositories, TPAs and more. By doing so, the insurance IMF can provide a plethora of other services that some might consider are beyond its domain. other services that it provides are as follows:
    • Providing back-office assistance as per the IRDA IMF guidelines
    • Acting as an approved person for Insurance repositories
    • Providing surveying and loss assessment services by inducting surveyors and loss assessors in their company.
    • Providing other insurance-related services as per the directions of the IRDA.
  3. Marketing Financial Products: Now this is where the marketing part of their services comes in. Being a marketing firm, IMF has the power to market the following financial products as per the directions of the IMF license:
    1. Mutual Funds of SEBI-regulated companies;
    2. Pension products under the regulations of PFRDA;
    3. Other financial products under the regulations of SEBI-licensed investment advisors in India.
    4. Banking/Financial products sold by the NBFC under the regulations of RBI
    5. Non-Insurance products provided by Department of Posts, Government of India;
    6. And Other financial products under the regulations of the Insurance Regulatory Development Authority of India.

What are the different benefits of the Insurance marketing firm?

One can categorize the benefits of an insurance marketing firm into the following:

  1. More services
  2. More clients
  3. Online market 

Here is the explanation for these Insurance marketing firm benefits:

  1. Access to multiple insurance services: if you don't want to limit your services to only certain facilities, procuring an IMF license si the best choice for you.
  2. Wide variety of clientele: Because the Insurance Marketing Firm Guidelines allow an insurance marketing firm to provide a plethora of insurance and financial services, you will get access to a wide variety of clientele.
  3. Access to an online market: Because most people are more interested in getting insurance services online, IMF can make lucrative profits in the market.

It is because of these benefits that becoming a top insurance marketing firm in India is not a difficult task - provided you follow all the guidelines carefully.

With the age of uncertainty has arrived the realization that we need to safeguard our financial futures. By starting an insurance marketing firm, you can take the first step by making people more aware of it. However, don’t get attached to the term “marketing”, for the legal definition of the term as per IRDA is quite nuanced, and can only be understood by the principal officer, who has to undergo 50 hours of insurance marketing firm training.

Why is the training required? It is only one part of the Insurance Marketing firm eligibility. An insurance marketing firm is only allowed to exist if it’s registered as per the provisions of IRDAI and the training of principal officer is the topmost eligibility criterion.

If you want to start your own Insurance Marketing Firm, you can reach out to Registrationwala. Registrationwala provides holistic services from application filing to department follow-up, ensuring that your Insurance marketing firm gets registered on time.

Eligibility Criteria to start an Insurance marketing firm in India

The applicant should be a registered business entity under the Ministry of Corporate Affairs. It means that the applicant should either be an LLP, an OPC or a private limited company.

  1. The applicant organization should have a qualified principal officer
  2. The applicant organization should have a qualified Financial Service Executive
  3. The applicant organization should have an Insurance Sales Person
  4. The applicant organization’s net worth should be at least 5 lakh rupees to open a single branch of IMF. For multiple branches, the net worth should be at least 10 lakh rupees.
  5. The name of the applicant’s organization name should include the term IMF or Insurance Marketing Firm

In order to prove that the applicant meets the aforementioned eligibility criteria, it is important to furnish the precise documents for the Insurance marketing firm license.

Documents required to start an Insurance Marketing Firm in India

This section gives you the first half of the answer to the question - how to start insurance marketing firm in India?

  1. Certificate of incorporation: It proves that the applicant is a registered business entity.
  2. Memorandum of Association: The memorandum of association is the document stating the objective of the company - it has to be precise and should explicitly state that the company provides 
  3. Articles of Association: it specifies the rules and regulations that the company adheres to.
  4. LLP agreement of the applicant is an LLP:  A critical document for the applicant who is applying as a Limited Liability partnership.  
  5. Qualification and details of the principal officer: Provide the qualification details of the principal officer. 
  6. Qualification and details of the Financial Service Executive(s): Every IMF that has hired an FSE, must provide their details.
  7. Qualification and details of the Insurance Sale Person(s): The Insurance sale Person must also have cleared the IRDA examination.
  8. Net worth certificate of the business entity: The net worth of the applicant must meet the requisite 
  9. Bank account statement: The bank account statement of the applicant entity must reflect the net worth.
  10. Three-year business plan: The applicant must have a three-year business plan to sustain the business.
  11. Details of the IMF infrastructure: Provide a complete organogram of the management infrastructure of the Insurance marketing firm.
  12. Undertaking by the principal officer: The principal officer must undertake that all the information he has provided is without any faults. That is the only way to procure the Insurance Marketing Firm license.
  13. Photographs of equipment and manpower: Provide photographic proof of all the manpower and equipment that you have.
  14. Consent letter from the insurance companies Consent letter of insurance companies that the applicant proposes to work with.

In regards to an insurance marketing firm, IRDA has put forth strict standards when it comes to the documents. Therefore, you must ensure that all the documents that we have mentioned are precise and as per the rules and regulations of the department.

Process to register an Insurance Marketing firm in India

Do you want to know how to become an insurance marketing firm in India? Look no further than these steps:

  1. Gather the required documents
  2. File the online IMF registration application
  3. Upload the requisite documents
  4. Monitor the application as it’s processed and deal with any discrepancies
  5. Obtain the NOC (No Objection Certificate) to start an Insurance Marketing Firm

Here is the explanation of these steps:

  • First, you have to gather the required documents and get them certified by an appropriate signatory.
  • Fill out the application for Insurance Marketing Firm registration. The process can be conducted online via the official portal. 
  • Uploading the requisite documents is required for submission. However, care must be taken to ensure that the quality of the uploaded attachments isn't bad.
  • Once your application has been submitted, you have to monitor it thoroughly to ensure that you can deal with any discrepancies that arise during the application's processing.
  • Get the certificate of registration.

This insurance marketing firm registration process is not a short one. Therefore, to ensure that this IRDA registration process is easier and gives you the license quickly, consult with experts.

How can we help you start an Insurance Marketing firm in India?

Registrationwala provides end to end services for aspirants of an Insurance marketing firm. To expedite the process:

  • We file the application
  • We draft the documents
  • Conduct the due diligence with the IRDAI

In the end, we ensure that you don’t have to worry about taking a lot of time in getting the NOC to set up your Insurance marketing firm.

Call us if you wish to start your firm to promote insurance policies.

Frequently Asked Questions-FAQs About Insurance Marketing Firm

Q1. What is an Insurance Marketing Firm?

An Insurance Marketing Firm is an IRDA-authorized insurance intermediary that provides a multitude of insurance services, including: Soliciting and procuring insurance products Providing insurance services Marketing insurance products.

Q2. What is the Insurance marketing firm license?

The Insurance Marketing firm license is the IRDA registration to establish an Insurance marketing firm in India.

Q3. What are the documents required for Insurance Marketing Firm License?

  • Certificate of incorporation
  • MOA/LLP agreement
  • Qualification details of the director
  • Qualification Details of the Financial Service Executive
  • Qualification Details of the Insurance Sale person
  • Net worth Certificate
  • Declarations Bank Account Statement
  • Three-year Business Plan
  • IMF examination clearance certificate
  • Consent Letter from the insurance companies
  • IMF infrastructure details
  • Management details
  • Photographs of manpower and equipment

Q4. What is the difference between insurance marketing firm and corporate agent?

Both are licensed by IRDA to solicit insurance policies. However, an insurance marketing firm can also provide insurance services and market financial products.

Q5. What is the eligibility criteria to obtain Insurance Marketing Firm License?

  1. The applicant organization should have a qualified principal officer
  2. The applicant organization should have a qualified Financial Service Executive
  3. The applicant organization should have an Insurance Sales Person
  4. The applicant organization’s net worth should be at least 5 lakh rupees to open a single branch of IMF.
  5. For multiple branches, the net worth should be at least 10 lakh rupees.
  6. The name of the applicant’s organization name should include the term IMF or Insurance Marketing Firm

Q6. How can Registrationwala help me get the license?

Regsitrationwala is a team of IRDA consultants. We are well versed with the regulations of insurance intermediaries and insurance marketing firms. we hold your hand and provide you with end-to-end assistance.

Q7. What is the process to obtain the IMF license?

  1. Furnish the documents
  2. Application submission
  3. Application assessment
  4. Grant of Insurance Marketing Firm license.

Q8. How long is the IMF license valid for?

IMF registration certificate is valid for 3 years.

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