In the Insurance Market, many businesses want to cater to the policy consumers by brokering between the Insurance and Reinsurance Companies and them. Such entities are called Insurance Brokers. To become a registered broker in the market, the applicant business has to file for the Insurance Broker License with the IRDAI. The IRDAI is the regulating authority of India's Insurance Sector. Every Broker license applicant must file for the Insurance Broker registration application. This article will detail the required document for the broker license registration procedure.
The Insurance Broker registration applicant must submit a copy of the Memorandum of Association (MoA) and Articles of Association (AoA) along with the Insurance Broker license application
Direct Insurance Broker
If the applicant has applied for a Direct Broker license, then the main object of the applicant will be the following:
"To act as a Direct Broker under the IRDA (Insurance Brokers) Regulations, 2018 as amended from time to time".
Reinsurance Broker
If the applicant has applied for a Reinsurance Broker license, then the main object of the applicant will be the following:
"To act as a Reinsurance Broker under the IRDA (Insurance Brokers) Regulations, 2018 as amended from time to time".
Composite Insurance Broker
If the applicant has applied for a Composite Broker license, then the main object of the applicant will be the following:
"To act as a Composite Broker under the IRDA (Insurance Brokers) Regulations, 2018, as amended from time to time".
The Articles of Association of the applicant company must not provide for the following:
If the AoA of the applicant company provides for any of the above options, then it is advised to amend it suitably kindly.
The applicant company must maintain a minimum paid-up capital of the following:
The certified Insurance Broker license aspirant must submit a copy of the shareholding agreement if any.
Case of a Pvt Ltd Company
If the applicant entity is a Private Limited Company, a certificate issued by the Chartered Accountant on the overall shareholding structure of the applicant entity certifying the following:
Case of a Company
If the promoter is a company, then it must submit a copy of the Board Resolution permitting the company to invest in the applicant entity, the last three years' annual reports and the net worth certificate of the promoting company.
Case of an Individual
If the shareholder is an individual, then he must submit a copy of the last three years Income Tax Returns. Also, he must present his computation and the net worth certificate. It must be done before investing with its computation issued by a Chartered Accountant.
Case of a Limited Liability Partnership
Suppose the applicant entity is a Limited Liability Partnership. In that case, the company must submit a certificate issued by the chartered accountant on the overall partnership structure of the applicant entity certifying the following:
The Insurance applicant must submit a self-declaration to the promoters, shareholders, or partners that the funds being invested as equity capital are out of their earnings or savings and not out of borrowings.