Karnataka - Apply for Insurance Broker (Agent) License

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Procedure

Apply Online:

1. To Apply for Insurance Broker (Agent) License, the applicant must make an Application with IRDAI on the BAP portal link
2. The applicant must click “Broker” menu and click “Register.”
3. Next the applicant must select user type as Corporate and user role as broker from the drop-down menu.
4. Enter the relevant information and click “Submit.” An Acknowledgement dialog box is displayed along with your User ID, notifying that the registration is successful.
5. Click “OK.” The user ID and password are sent to your registered email ID.
6. Next the applicant has to login with user name and password.
7. The Change Password screen is displayed if you are logging in for the first time.
8. Enter old and new password and click “Change”.
9. After login click on “Broker” and click on “New Licensing”.
10. User will get a confirmation box saying Please confirm that you have gone through all information regarding broker regulations on IRDAI site.
11. Click on “Yes”, user will get Applicant Details screen.
12. The Broker New Licensing form will open on screen. Please note that all fields marked with asterisks (*) on the screen are compulsory.
13. The New License application consists of the following sections:
    • Applicant Details
    • Firm Structure
    • Business Information
    • Financial Information
    • Other Information, if any
    • Upload Documents
    • Declaration
    • Undertaking
    • Print View
14. The applicant must complete all the sections and upload the necessary documents that are mentioned in “Required Documents” section of this page.
15. After Completing, the applicant must make payment. Select the desired payment type and click on “Go” to make payment through that type.
16. The fee details are mentioned in “Fees” section of this page.
17. After successful completion of payment an Acknowledgement dialog box is displayed containing the Unique Reference Number (URN).
18. This completes the New License application process. Once the user has submitted the application form, it is sent to IRDAI. Action taken by IRDAI on the form is conveyed to the user through email notifications.
19. If the authority feels that all the requisite information complies with the Insurance broker license, then an in-principal approval would be provided to the applicant for complying with the requirements related to the certificate of registration.
20. The authority will grant the certificate if the applicant has complied with the laws and regulations.
21. The entire process can be completed within 30 – 60 days or as per the timeline advised by the respective department authority.

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Required Documents

• Submission of relevant information as required in the Schedule I – Form B.
• Copy of the Memorandum of Association and Articles of Association should be according to the requirements of the Companies Act 2013.
• Remittance of the Fee for the category of Insurance broker license.
• Training for the employees starting an insurance broker business
• Schedule-I Form F should have the relevant data of the principal officer.
• Fit and Proper certification, which is required as per Schedule-I Form G.
• Declaration submitted by a key management executive, principal officer, director of the company that they are not having any form of disqualification under the Act.
• Details of Directors/ Partners, Promoter and Key Management Personnel are to be provided in the Form.
• Schedule I- Form F- List of qualified persons responsible for managing and procuring brokerage business along with their qualifications.
• Details of statutory auditors and Principal Bankers along with the Bank Account Number of the applicant. Details of infrastructure, including IT infrastructure along with supporting evidence thereof like ownership or lease agreement evidencing that sufficient space is present for managing the brokering business.

Office Locations & Contacts

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Sy No. 115/1, Financial District, Nanakramguda,
Gachibowli, Hyderabad – 500032
Mail: [email protected]
Phone: +91-4020204000, +91-4039328000

IRDAI Regional Offices
Mumbai
National Insurance Building 12, J. Tata Road,
Ground Floor Mumbai 400 020. Near Churchgate
Mail: [email protected]
Phone: 022-22898600

Delhi
Gate No. 3 Jeevan Tara Building,
First Floor Sansad Marg, New Delhi-110001
Mail: [email protected]
Phone: (011)-23444400
Contact Details link

Eligibility

• Any partnership registered under the Limited Liability Partnership Act, 2008.
• Any co-operative society registered under the Co-operative Society Act, 1912.
• Any company established under the Companies Act, 2013 or any previous company law.
• Any other individual recognised by IRDAI to carry on the business related to an insurance broker.

Fees

The fees that must be paid for application for an insurance broker is as follows:

• Direct broker Rs.25,000.
• Re-insurance broker Rs.50,000.
• Composite broker Rs.75,000.

Apart from this, there are mandatory fees that must be paid for the registration requirements:

• Direct Broker: Rs. 50,000/- after granting of an in-principal approval where the application is new. In case of renewal of registration, the fees will be Rs 1,00,000/- for a period of 3 years.
• Re-insurance Broker: Rs. 1, 50,000/- after granting of an in-principal approval where the application is new. If there is a renewal of registration, then the fee to be paid for renewal is Rs. 3,00,000/- for 3 years.
• Composite Broker: Rs.2, 50,000/- after granting of an in-principal approval where the application is new. If there is a renewal of registration, then the fee to be paid for renewal is Rs. 5,00,000/- for 3 years.

Validity

• An Insurance Broker (Agent) License granted by the IRDAI would be valid for three years from the date of issue. This would be subject to the order from the authority.

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• The entire process can be completed within 30 – 60 days or as per the timeline advised by the respective department authority.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

• Applicants must complete the application form before submitting it. Incomplete applications will not be accepted.
• Applicants must provide genuine information while applying for this procedure.

Conditions for Granting the Insurance Broker License The IRDAI makes certain conditions before granting the insurance broker’s license:

• The insurance broker must conduct the business according to the rules of the IRDAI.
• If the insurance broker business has provided false or misleading information regarding the particulars of the business, then the same must be intimated to the authority.
• Insurance broker business must handle all grievance procedures of clients within 14 days of receiving the complaint. The business must keep information regarding the number of complaints received from customers.
• Insurance brokers must reasonably conduct their business under the rules laid down by the IRDAI.
• The insurance broker must maintain books of accounts.
• Insurance broker should not conduct multi-level marketing or solicitation.

Rejection

• An application for starting an insurance business can be rejected if the authority feels that the applicant has not fulfilled the necessary requirements.
• The authority must communicate the refusal to grant the application for an insurance broker license within 30 days of communication of the rejection.
• An applicant can make a new application after one year of rejection of the application.

Required Information

• Name of the applicant broker
• Registered/Permanent Address Details
• City
• District
• State
• Country
• Pin Code
• Phone No
• Fax No
• Mobile No.
• Email-Id
• Alternate e-mail ID
• Branch Office Details
• Company Pan Number

Need for the Document

• An insurance broker license is a government-issued permit that allows a person or entity to act as an insurance broker. Insurance brokers are licensed by the state or territory in which they operate, and they must meet certain requirements in order to obtain a license

Information which might help

• For more information link

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

Link

Others

There are several types of insurance brokers, each with its own specialization and focus.
Here are some of the most common types of insurance brokers:

• Direct brokers: Direct brokers work directly with insurance companies to place policies for their clients. They do not have any inventory of policies themselves, and they do not charge any upfront fees. Instead, they earn a commission from the insurance company when they place a policy.
• Reinsurance brokers: Reinsurance brokers help insurance companies transfer some of their risk to other insurance companies. This helps insurance companies to manage their risk and to stay financially solvent. Reinsurance brokers typically charge a fee for their services, which is usually a percentage of the reinsurance premium paid.
• Composite brokers: Composite brokers offer a combination of the services of direct brokers, retail brokers, and commercial brokers. They can help individuals, businesses, and insurance companies find the best insurance policies for their needs. Composite brokers typically charge a fee for their services, which is usually a percentage of the premium paid.