An insurance Broker license, of any type, as per the regulations of the Insurance Regulatory and Development Authority of India (IRDAI), has a validity period of three years after which the license expires if it is not renewed on time. The authorities, just before three months of license expiry, send the Insurance Broker a reminder email to renew his broker license. Afterward, these reminders are sent at an interval of one month informing the broker license holder to renew his/her license before expiry. The broker must pay the required renewal license fee.
Time for filing the license renewal application form
- At least 30 days before the expiry of the Certificate of Registration (CoR) of the Insurance Broker firm, there will be no additional fee required to file for renewal. For example, if the date of expiry of CoR is 31/07/21, the application should reach before at least 03/07/21.
- If you file for renewal thirty days before the expiry of the Certificate of Registration, the additional fee of hundred rupees will be charged. For example, if the date of CoR is 31/07/21, the application should reach from 030/06/21 to 30/07/21.
- If you file for the license renewal after the date of the expiry of the certificate of registration up to 60 days of the expiry of CoR., the additional fee of 750 rupees will be charged with stating the reasons for the delay in submission. For example, if the date of CoR is 31/07/21, the application should reach from 30/07/21 to 30/09/21.
The step-by-step process for the license renewal
- Apply for license renewal before 30 days of the expiration of the broker license, using Form-K available in schedule-I.
- After successful submission, the authority assesses the application and if required, may seek further clarifications or information regarding the application. The license-renewal applicant is required to submit the demanded information within 21 days.
- The applicant will pay the required license renewal fee, according to the type of insurance broker license fee, along with the relevant documents for such renewal. The application will not be processed unless the applicant pays the required fee.
- If the assessment of the application is successful, then the IRDAI will renew the required insurance broker license for another three years and send the notice to the applicant regarding this.
Documents required for renewing Broker’s License
The required documents to fill with the license renewal application for the Insurance Broker license are listed below:
- The renewal form is available on the official website (Schedule I – Form K)
- Demand draft and payment details of the renewal processing fee.
- Renewal checklist duly signed by directors or member-partners and also the principal officer of the company.
- Current shareholding pattern of the company and at the time of previous renewal certified by a chartered accountant, file it in the mentioned in the Form N format (Schedule 1).
- Renewal training certificate for 25 hours undergone by the Principal Officer and Broker Qualified Persons.
- Duly filled Form-O mentioned in the schedule I, duly signed by a Director/Partner and the Principal Officer of the company.
- List of all the Broker Qualified Persons along with the reporting branch offices.
- List of top 10 clients year-wise for the last three years.
- Premium figures of the business.
- Reinsurance or Composite Insurance Brokers certificate from a reputed Chartered Accountant certifying the firm’s compliance.
- Any other document specific to the applicant and required for registration.
License Renewal Fee
The fee for renewal of the certificate of registration for:
- A direct insurance broker license is 1 lakh rupees.
- A reinsurance insurance broker license is 3 lakh rupees.
- A composite insurance broker license is 5 lakh rupees.
Renew your Insurance Broker license with Registrationwala
As it is mentioned above that a simple renewal of a License has lots of legal complexities and the required document list is large and also the procedure for a renewal application is vague, we here at Registrationwala provide you with your team of legal experts who can assist you in the process of your license renewal, through which you can resume or carry on your brokerage activities.