Want to open a Insurance Broking house in India? Read out the steps below to have a bird eye view to become an Insurance Broker ?
1. A company desirous to become a broker must decide the area of operation i.e. Life Insurance, General Insurance or Reinsurance.
2. A broker represents the client in contrast to agents who represents insurers.
3. A broker may act as Direct or Composite broker.
4. The company must appoint a Principal Officer to carry out the functions as a broker.
5. The role of broker is not just limited to selling of policies but also to guide the insured according to his need.
6. An application by a person for grant of a license as an insurance broker shall be made in Form A to the Authority.
7. An application, not complete in all respects and not conforming to the instructions specified in the Form A and these regulations, shall be rejected.
8. The Authority may require an applicant to furnish any further information or clarification for the purpose of disposal of the application, and, thereafter, in regard to any other matter as may be deemed necessary by the Authority.
9. The broker must not suffer from any disqualification and must fulfill all criteria related to qualification, training and capital requirements.
10. The broker must fulfill the following capital eligibility criteria:
(a) Direct broker – fifty lakhs
(b) Reinsurance broker – two hundred lakhs
(c) Composite broker – two hundred and fifty lakhs
11. The Authority on being satisfied that the applicant fulfills all the conditions specified for the grant of license, shall grant a license in Form B and send an intimation thereof to the applicant mentioning the category for which the Authority has granted the license. The license shall be issued subject to the insurance broker adhering to the conditions and the code of conduct as specified by the Authority from time to time.
12. A license once issued shall be valid for a period of three years from the date of its issue, unless the same is suspended or cancelled pursuant to these regulations.
13. An insurance broker may, within thirty days before the expiry of the license, make an application in Form A to the Authority for renewal of license.
14. Every applicant eligible for the grant of a licence shall pay such fees in such a manner and within such a period as specified in Schedule II.
Courtesy : General Insurance Year Book published by the Insurance Times Group
Â
For more details you can visit the site of Insurance Broker Association of India
INSURANCE BROKERS ASSOCIATION OF INDIA,
MAKER BHAVAN NO.1, 4TH FLOOR,
SIR V. T. MARG, MUMBAI 400 020.
(TEL. NO.- 022 – 22846544)
E-mail : ibai@ibai.org http://www.ibai.org
Â
