Insurance Broker License

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Procedure to get Insurance Broker License


Submit application FORM B

Examine the Application

Approval Submission of the documents

Certifictae Issuance of in-principle approval

ISO LR Issue of Certificate of Registration in Form J.

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Insurance Broker License


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

Who is Insurance Broker?


An insurance broker is a company/business or person registered as an advisor of insurance or qualified people or firm which acts by its partners/directors or employees with expert knowledge of insurance-based laws. Insurance brokers lead people to their insurance demands. Moreover, they offer expert services to their customers. Acts as a mediator among a person and an insurance company asking to buy an insurance policy.

An insurance broker can be classified in there 3 Types –

  • Direct Insurance Broker– solicitation and acquisition of the business of insurance and allows its client to buy an insurance policy from its website or Computer software. And gets commission charges from the insurance company whose policy has been sold. You can have a full see all the function of Direct insurance broker

  • Composite Insurance Broker – Is an insurance agent and operates a valid license to give insurance-related services for both lives & general insurance. The composite insurance broker licensing process is highly selective by the authority.

  • Reinsurance Broker – A company that can fix reinsurance on behalf of an insurance company.

Who can apply for Insurance Broker License?


According to IRDAI Regulations, the insurance broker license candidates can be anyone from the following :

  • Company registered under the Companies Act, 2013

  • Any registered co-operative society made under provisions of Co-operative Societies Act, 1912, or any similar law

  • Limited Liability Partnership ( LLP)registered under the LLP Act, 2008

  • Any other person approved by the Authority
    Note: If the candidate of Insurance Broker License application is a registered LLP then none of the following can be a partner of the same;

  • Non-resident entity

  • Foreign LLP enrolled under foreign country laws

  • Person resident outside India.

Insurance broker License Validity & Renewal


Insurance broker Certificate of Registration is allotted for three years from the date of such issuance. The certified insurance broker is required to apply for the renewal of the Insurance Broker License at least 1 month before the expiry of these three years of registration. Otherwise, his/her license gets expired and they have to pay penalties. And more delays will also take them to the consequence of issuing a fresh license.

Requirements for Insurance Broker License


Minimum Financial Requirements

Paid-up Capital/ Contribution Requirement. See the following is the minimum capital want to apply for insurance broker registration:

  • For Direct Broker – Rs. 75 Lakh
  • For Reinsurance Broker – Rs. 4 Crore
  • For Composite Broker – Rs. 5 Crore

Net worth Requirement

At the time of enrollment and during Insurance Broker License the insurance broker is need to keep a minimum net worth of

  • Rs. 50 Lakh for Direct Broker and
  • 50% of the Minimum Capital Requirement for reinsurance & composite Broker.

Deposit Requirement

Before applying for the registration application and during Insurance Broker License the candidate is asked to deposit with the scheduled bank an amount of:

  • Rs. 10 Lakh for Direct Broker and
  • 10% of the Minimum Capital Requirement for reinsurance & composite Broker.

Insurance Broker License fee


Application for Insurance Broker Licenses must be submitted along with the requisite fees as defined in Schedule I – Form D of these regulations.

Non-Refundable Application Fees

Paid-up Capital/ Contribution Requirement. See the following is the minimum capital want to apply for insurance broker registration:

  • For Direct Broker – Rs. 25,000
  • For Reinsurance Broker – Rs. 50,000
  • For Composite Broker – Rs. 75,000

Registration Fees for Fresh Registration

At the time of enrollment and during Insurance Broker License the insurance broker is need to keep a minimum net worth of

  • For Direct Broker – Rs. 50,000
  • For Reinsurance Broker – Rs. 1,50,000
  • For Composite Broker – Rs. 2,50,000

Renewal Fees for 3 years

Before applying for the registration application and during Insurance Broker License the candidate is asked to deposit with the scheduled bank an amount of:

  • For Direct Broker – Rs. 1,00,000
  • For Reinsurance Broker – Rs. 3,00,000
  • For Composite Broker – Rs. 5,00,000

Detailed Steps for Apply for Insurance Broker License


Once you have gathered all the documents required for Insurance Broker license, you can follow the below steps to for the registration process:

Step 1:

You require to apply for the Insurance Broker License in Form B as given in Schedule I of the IRDA regulations with authority. Even, you too need to present the non-refundable application fee with the required documents.


Step 2:

If the authority raises any question after the verification of the application for the Insurance Broker License, it can ask the applicant for additional documents and information. Besides, it can order the applicant to comply with any demands.


Step 3:

Within 30 days from the date of such communication, the candidate is required to present information required, the document needed or clarification as the case be.


Step 4:

After being satisfied that the candidate meets all the requirements, the Authority will issue in-principle permission for the registration.


Step 5:

When the issue of in-principle approval, the candidate is needed to comply with the additional demands and submit Insurance Broker License fees with the Authority online.


Step 6:

If the Authority is convinced that all the requirements affirmed in the Act, regulations, rules, guidelines, circulars, etc. are met by the candidate along with the provisions stated in the in-principle approval certificate, then it will give a Certificate of Registration in Form J guided in schedule 1


Documents required to apply for insurance broker license


The following are the documents to be submitted as mentioned in Form C of Schedule I of the IRDA Regulations :

  • Insurance Broker License application & other mandatory documents to be submitted in Form B.

  • Photocopy of the MOA & AOA of the company.

  • The applicant should submit information about a Principal officer such as qualifications, training compliance, and other criteria as mentioned in Form G of Schedule 1.

  • A written declaration of the Principal officer along with the directors/partners and required managers, confirming that they don’t abide by any disqualifications as mentioned in Section 42D of the Act.

  • Complete details of every director/partner, promoter, and important managerial personnel.

  • Current bank account details.

  • List of a minimum of two qualified brokers and their qualifications.

  • List of all shareholders of the applicant company; present as well as proposed. If the shareholder is a company, provide the Board Resolution passed by the company in investing and promoting the applicant company.

  • Information regarding the Principal Bankers and the statutory auditors.

  • Balance sheet of the company.

  • Details of infrastructure like IT infra, tools, office area, & the workforce.

  • Other documents as required

Checklists for Insurance Broker Registration


You must satisfy the following guidelines for obtaining Insurance Broker Registration:

  • An entity must have the word Broking or Broker in its name

  • MOA must include the insurance broking as its principal aim

  • Whether the company satisfies the least capital requirement as presented in the regulations

  • It must not hold any foreign capital which exceeds 26% of the total paid-up capital

  • If the fixed deposit of 20% of first capital is paid in the certified bank

  • The principal officer must keep the fair qualification, should have passed the brokers’ exam, and maintain the required training

  • The company must engage a minimum of 2 persons with the obligatory qualification and training

  • The company has the needed infrastructure and well-trained workforce to run the business of insurance broking

  • The persons involved in securing insurance business are qualified and trained

Frequently Asked Questions


It is a license that is established under IRDA and complies with the rules & regulations of the Insurance Regulatory and Development Authority Act, 1999 with the Authority in consultation and the Insurance Advisory Committee. The license is issued to make a control over all the insurance brokers, their activities & activities.

IRDA- Insurance Regulatory and Development Authority governs and issues Insurance Broker License & its services

Insurance brokers is a person who acts as a mediator between the insurance company and the person who is searching for insurance policies.

According to IRDAI Regulations, the insurance broker license applicants can be anyone from the following :
• Company registered under the Companies Act, 2013
• Registered co-operative society made under provisions of Co-operative Societies Act, 1912
• LLP registered under the LLP Act, 2008
• Any other person approved by the Authority

1) Submit application FORM B
2) Examine the Application
3) Submission of the documents
4) Issuance of in-principle approval
5) Issue of Certificate of Registration in Form J

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