Concept of Insurance Marketing Firm (IMF)
Insurance Marketing Firm (IMF) is a distribution channel introduced by the Authority in 2015. It is envisaged to be a one stop shop, offering financial products required at various stages of the life of an individual. IMFs are registered by the Authority under Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) Regulations, 2015 (IMF Regulations). The registration is district-wise, and the IMFs are allowed to opt for a maximum of three districts within a state.
The IMFs follow the concept of open architecture, wherein they are allowed to solicit and procure insurance products of maximum of two Life, two General and two Health insurance companies at any point of time. In addition to these six tie-ups, the IMFs are also allowed to tie-up with Agriculture Insurance Company of India Ltd. (AIC) and Export Credit Guarantee Corporation Ltd. (ECGC). IMFs are allowed to procure all types of life insurance products, whereas, only retail lines of insurance products are permitted in respect of general insurance. IMFs can also distribute other financial products as permitted by RBI, SEBI, PFRDA, Department of Posts, etc. after obtaining due approvals from the respective authorities.
Registration as IMF with IRDAI.
No Objection Certificate(NOC)
- Applicant has to obtain an NOC from IRDAI. No Objection Certificate (NOC) is a certificate issued to an IMF applicant by the Authority on request. The NOC is issued for the sole purpose of enabling the IMF applicant to apply for incorporation of the proposed IMF Firm Name (which must necessarily include the words “Insurance Marketing / IMF”) with Registrar of Companies (ROC). The NOC is valid up to six months from the date of issue.
- Applications for NOC / registration can be submitted through the online portal https://imf.irda.gov.in
Application procedure for IMF Registration
The applicant shall register on the IMF portal and submit application for IMF registration (within one year of incorporation of the company with ROC ) along with the following requirements
- Complete the Form A by filling in all the relevant fields and uploading the relevant documents
- Remit the non-refundable application fees of five thousand rupees. The payment must come from the bank account of the IMF.
- Submit a declaration from the principal officer/directors/managing partners satisfying the “Fit & Proper” criteria in the format prescribed in the IMF Regulations.
- Submit a copy of the Insurance Marketing Firm Exam pass Certificate of the Principal Officer and the ISPs proposed to be engaged by the Insurance Marketing Firm
- Submit a copy of the Qualification Certificates and Experience Certificates of the PO
- Submit a copy of the Qualification Certificates of the ISP and his/her Address Proof within the state in which the IMF is proposed to be registered.
- Submit an undertaking by the Principal Officer in the format prescribed by the Authority that the IMF shall ensure compliance with the Regulations
- Submit a Net Worth Certificate from a Chartered Accountant that the Net Worth of the proposed IMF is not less than the limit prescribed by the IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015 and amendments thereof.
- Submit the Bank Account statement of the IMF in support of the Net Worth Certificate
- Submit a copy of MoA and AoA in case of a company or the LLP Agreement in case of an LLP.
- Submit a Three Year business plan document with projected volume of activities and income Submit an Organization Chart showing functional responsibilities
- Submit details of Infrastructure like Office Space (Rent Agreement/Sale Deed), Equipment and Manpower (Photographs)
- Submit consent letter from Insurance Companies with which the applicant proposes to work (at least one consent letter is necessary)
