“Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018” establishes the framework for the registration, operation, and regulation of insurance brokers in India. Here’s a detailed summary of the regulations:
General Provisions
Title and Commencement: The regulations are officially titled as stated and came into effect upon their publication in the Official Gazette, superseding the 2013 regulations.
Definitions: Provides definitions for terms such as “Insurance Broker,” “Direct Broker,” “Composite Broker,” “Reinsurance Broker,” and others to standardize terminology across the industry.
Registration and Operation
Categories of Brokers: Specifies different categories of brokers—direct, reinsurance, and composite—and outlines the application process for each.
Application for Registration: Details the procedure for applying for registration, including necessary documentation and fees.
Renewal of Registration: Describes the process for renewal of registration, including timelines and conditions for renewal.
Duties and Responsibilities
Functions of Brokers: Enumerates the functions of different types of brokers, including the solicitation and arrangement of insurance and reinsurance.
Capital Requirements: Sets minimum capital requirements for each category of broker.
Professional Requirements: Specifies training and professional qualifications required for brokers and their key management personnel.
Compliance and Governance
Code of Conduct: Establishes a code of conduct that all insurance brokers must adhere to.
Corporate Governance: Requires brokers to maintain robust corporate governance practices, including risk management and internal audits.
Supervisory and Disciplinary Actions
Inspection and Investigation: Allows IRDAI to inspect and investigate brokers to ensure compliance with the regulations.
Penalties and Consequences: Details penalties for non-compliance, which can include suspension or cancellation of registration.
Miscellaneous Provisions
Outsourcing and Co-broking: Discusses the conditions under which insurance brokers can outsource functions or co-broke with other registered brokers.
Reporting Requirements: Brokers must submit regular reports to IRDAI detailing various aspects of their operations.
These regulations aim to ensure that insurance brokers operate in a transparent, responsible, and compliant manner, thereby protecting consumer interests and promoting the integrity of the insurance market in India.
