Insurance brokers in India must obtain a certificate of registration from the Insurance Regulatory and Development Authority of India (IRDAI) under its insurance brokers regulations. Applicants choose a category (direct, reinsurance or composite), meet capital and net worth requirements, appoint a qualified principal officer and trained staff, and follow conduct and reporting norms.
Broker categories
| Category | Scope |
|---|---|
| Direct broker | Life, general or both for retail and corporate clients |
| Reinsurance broker | Placing reinsurance |
| Composite broker | Both direct and reinsurance broking |
Eligibility
- Eligible entity with broking as the main object
- Minimum capital and net worth as specified for the category
- Principal officer and staff with prescribed training and qualifications
- Adequate infrastructure and professional indemnity insurance
Process
- Incorporate the entity with suitable objects.
- Apply to IRDAI with documents and fees.
- Respond to queries and in-principle approval.
- Complete conditions and receive registration.
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File periodic returns, maintain client money in separate accounts, follow the code of conduct, and renew registration on time.
Frequently asked questions
Is an insurance broker different from an agent?
Yes. An agent represents one or a limited number of insurers, while a broker represents the client and can place business with multiple insurers.
Can foreign investors invest in insurance brokers?
Foreign investment in insurance intermediaries is permitted under the automatic route subject to FDI policy and IRDAI conditions.
How long does IRDAI registration take?
Timelines vary, often several months, depending on application completeness.
Is professional indemnity insurance mandatory?
Yes. Brokers must maintain professional indemnity cover as prescribed by IRDAI.
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