Introduction
An Insurance Broker License issued by the Insurance Regulatory and Development Authority of India (IRDAI) empowers individuals or firms to act as intermediaries between insurers and policyholders, offering unbiased advice, product comparisons, and claims support.
Obtaining this license requires following a structured process, submitting required documents, and meeting IRDAI’s eligibility criteria. Below is a detailed overview of the application process, timeline, and documentation needed to secure your license.
Documents Required
Below is the comprehensive list of documents required for the IRDAI Broker License Application. It’s recommended to prepare all documents meticulously to avoid delays.
Company/Applicant Documents
1) Certificate of Incorporation (for companies) or Partnership Deed (for LLPs/partnerships)
2) Memorandum and Articles of Association (MoA & AoA) with relevant objects clause
03) Board Resolution authorizing the application and appointment of the Principal Officer
04) Audited Financial Statements for the last 3 years (if applicable)
05) Net Worth Certificate from a Chartered Accountant confirming the minimum net worth requirement (Rs. 50 lakh for Direct Broker, Rs. 4 crore for Composite Broker, etc.)
06) Income Tax Returns (last 3 years, if available)
Principal Officer & Key Management Documents
1) Detailed Resume of the Principal Officer (PO) and Key Management Personnel
2) Qualification Certificates — Minimum prescribed qualifications (as per IRDAI guidelines)
03) Experience Certificates — Minimum 2 years of relevant insurance experience (for PO)
04) Fit & Proper Declaration (Form G) duly signed by the Principal Officer and directors/partners
05) Identity & Address Proof — PAN Card, Aadhaar Card, Passport, etc.
Other Documents
01) Application Form A (duly filled and signed) as per IRDAI (Insurance Brokers) Regulations
02) Professional Indemnity Insurance (to be arranged before final license approval) as per IRDAI requirements
03) Prescribed Fees — Demand Draft or online payment as per IRDAI fee schedule
04) Business Plan — including infrastructure, HR, IT systems, and marketing strategy
05) Organizational Structure & Compliance Framework — showing internal controls, risk management, and client handling process
06) Any additional documents as requested by IRDAI during the review process
Detailed Application Steps
Step 1. Pre-Application Planning
Conduct eligibility checks — ensure minimum net worth, qualifications, and experience. Prepare a comprehensive business plan, including revenue model, operational strategy, and risk management framework. Arrange financial statements and net worth certificate.
Step 2. Compile Documents
Gather all company-related documents (MoA, AoA, Certificate of Incorporation, Board Resolution). Collect personal documents of the Principal Officer and key management (qualifications, experience, identity proofs). Complete Form A as per IRDAI (Insurance Brokers) Regulations.
Step 3. Submit Application to IRDAI
Submit the application along with supporting documents and the prescribed fee to the IRDAI’s head office in Hyderabad. Retain copies of all documents for reference.
Step 4. IRDAI Scrutiny and Clarifications
IRDAI reviews the application for completeness and compliance. If any deficiencies or clarifications are required, IRDAI sends a communication seeking additional details. Respond promptly to avoid delays.
Step 5. Final Approval and License Issuance
Upon successful verification, IRDAI grants the Insurance Broker License. The license remains valid for a period of 3 years, subject to compliance with IRDAI regulations.
Additional Guidance
01) Maintain a robust compliance framework to handle client data, complaints, and risk management.
02) Appoint a qualified Principal Officer and provide training as per IRDAI guidelines.
03) Keep professional indemnity insurance in force at all times.
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