In India IRDA i.e. e Insurance Regulatory and Development Authority governs and issues Insurance Broker License & its services. For Insurance Broker license the ” Insurance Regulatory and Development Authority Act, 1999 with the Authority in consultation and the Insurance Advisory Committee”, makes the rules & regulations. The purpose of establishing this regulation is to watch & supervise insurance brokers. The insurance brokes suggests people regarding their insurance needs and after than guide them to pick the right insurance product for them. The Insurance Brokers act as the middle person among the insurance company and the people searching for buying insurance policies. They have a deep knowledge of the insurance-related laws & products.
In 2018, an updated version of IRDA (Insurance Broker) Regulations, 2018 were circulated by the IRDA. As per these laws, Insurance Broker License can be done in any of the following sections:
- Direct Insurance Broker License – Capital required Rs. 75 Lakh
- Composite Insurance Broker License – Capital required Rs. 5 Crore
- Reinsurance broker License – Capital required Rs. 4 Crore