{"id":11083,"date":"2020-06-17T15:52:47","date_gmt":"2020-06-17T10:22:47","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=11083"},"modified":"2020-06-17T16:25:22","modified_gmt":"2020-06-17T10:55:22","slug":"educational-requirements-for-insurance-broker-license","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/educational-requirements-for-insurance-broker-license\/","title":{"rendered":"Insurance Broker Educational Requirements for Insurance Broker License"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The insurance sector in India is rapidly developing and moving towards a more transparent and accessible market for insurance buyers. Insurance businesses that operate in India include insurance companies, web aggregators and insurance brokers. In order to start an insurance broking company, it is essential to obtain the <strong><a href=\"https:\/\/swaritadvisors.com\/insurance-broker-license\">Insurance Broker License<\/a><\/strong>. This guide lays down in detail, the requirements for insurance broker license, specifically the insurance broker education requirements. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a31d59b9b923\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a31d59b9b923\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/educational-requirements-for-insurance-broker-license\/#Insurance_Brokers_in_India\" title=\"Insurance Brokers in India\">Insurance Brokers in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/educational-requirements-for-insurance-broker-license\/#Minimum_Educational_Requirements_for_Insurance_Broker_License\" title=\"Minimum Educational\nRequirements for Insurance Broker License\">Minimum Educational\nRequirements for Insurance Broker License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/educational-requirements-for-insurance-broker-license\/#Professional_Training_and_Examination_Requirements_for_Insurance_Broker_License\" title=\"Professional Training and Examination Requirements for\nInsurance Broker License\">Professional Training and Examination Requirements for\nInsurance Broker License<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/educational-requirements-for-insurance-broker-license\/#Certificate_for_Principal_Officer_and_Broker_Qualified_Person\" title=\"Certificate for Principal Officer and Broker Qualified Person\">Certificate for Principal Officer and Broker Qualified Person<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/educational-requirements-for-insurance-broker-license\/#Other_Conditions_Relating_to_Insurance_Broker_License\" title=\"Other Conditions Relating to\nInsurance Broker License\">Other Conditions Relating to\nInsurance Broker License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/educational-requirements-for-insurance-broker-license\/#Fit_and_Proper_Criteria_Requirements\" title=\"Fit and Proper Criteria\nRequirements\">Fit and Proper Criteria\nRequirements<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insurance_Brokers_in_India\"><\/span>Insurance Brokers in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In India, the concept of\ninsurance brokers is not new. There have existed thousands of insurance broker\ncompanies for years, but the sector was primarily unorganised. Recently, the\nInsuranceRegulatory and Development Authority of India (Insurance Brokers)\nRegulations, 2018 were enacted to supervise and monitor insurance brokers as an\ninsurance intermediary in India.<\/p>\n\n\n\n<p>Under <strong>Regulation 2(k) of the IRDAI Insurance Broker Regulations<\/strong> <a href=\"https:\/\/www.irdai.gov.in\/ADMINCMS\/cms\/frmGeneral_NoYearList.aspx?DF=RL&amp;mid=3.1.1\">[1]<\/a> , an insurance broker has been defined as a person who is a direct broker, a reinsurance broker or a composite broker registered with the IRDAI.<\/p>\n\n\n\n<p>Regulation 2(e) further defines Composite Brokers as Insurance\nBrokers who are registered with the IRDAI who solicit and arrange insurance,\nreinsurance or both, for their clients with insurance companies or reinsurance\ncompanies in India or abroad for a remuneration along with a fee. They also\nprovide consultancy services for claims, risk management or other advisory services\nto insurance buyers as per the IRDAI regulations. <\/p>\n\n\n\n<p>Also, as per Regulation 2(f), Direct Brokersare\nInsurance Brokers who provide services for solicitation and arrangement of\ninsurance business for their clients with insurance companies in India or\nabroad in exchange forremuneration along withsome fees. They may also provide consultancy\nservices for claims, risk management or other advisory services to insurance\nbuyers as per the IRDAI regulations.<\/p>\n\n\n\n<p>Lastly, Regulation 2(p) defines\nReinsurance Brokers as Insurance who solicit and\narrange reinsurance for their clients with reinsurance companies in India or\nabroad for a remuneration along with a fee. They also provide consultancy\nservices for claims, risk management or other advisory services to insurance\nbuyers as per the IRDAI regulations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Minimum_Educational_Requirements_for_Insurance_Broker_License\"><\/span>Minimum Educational\nRequirements for Insurance Broker License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In order to operate as any of the types of insurance\nbrokers in India and obtain thelicense, there are certain requirements for\nInsurance Broker License to be fulfilled. The first requirement that must be\nfulfilled by the insurance brokers relates to their educational qualifications.\nAs per the IRDAI Insurance Broker Regulations, an insurance broker must possess\nany of the following educational qualifications:<\/p>\n\n\n\n<ul><li>Bachelor\u2019s degree in the\nfields of Arts, Science, Social Sciences, Commerce, Engineering, Law or any\nother equivalent form of degrees from any institution oruniversity recognised\nby a State or the Central Government; or<\/li><li>Master\u2019sdegree in Business\nAdministration or an equivalent from a recognised institution or university; or\n<\/li><li>Associateship or Fellowshipfrom\nthe Insurance Institute of India, Mumbai; or<\/li><li>Associateship or Fellowshipfrom\nthe Institute of Risk Management, Mumbai; or<\/li><li>Post-graduate\nqualification from the Institute of Insurance and Risk Management, Hyderabad;\nor<\/li><li>Associateship or Fellowshipfrom\nthe Institute of Chartered Accountants of India, New Delhi; or <\/li><li>Associateship or Fellowshipfrom\nthe Institute of Cost and Works Accountants of India, Kolkata; or<\/li><li>Associateship or Fellowshipfrom\nthe Institute of Company Secretaries of India, New Delhi; or<\/li><li>Associateship or Fellowshipfor\nthe Institute of Actuaries of India; or<\/li><li>Associateship or Fellowshipfor\nChartered Insurance Institute, London; or<\/li><li>Chartered Financial\nAnalyst from Institute of Chartered Financial Analyst of India; or<\/li><li>Certified Associateship of\nthe Indian Institute of Bankers, Mumbai; or<\/li><li>Any other qualification\nspecified by the IRDAI.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Professional_Training_and_Examination_Requirements_for_Insurance_Broker_License\"><\/span>Professional Training and Examination Requirements for\nInsurance Broker License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Additionally, the insurance broker must also fulfil the\nfollowing training requirements for insurance broker license registration:<\/p>\n\n\n\n<ol><li>Completion of the prescribed fifty hours of theoretical and practical training by the Principal Officer and Broker Qualified Persons from an institution recognised by the IRDAI, and passing the insurance examination after the end of the training as conducted by the National Insurance Academy, Pune or any such examining body which has been recognised by the Authority.<\/li><li>Theoretical and practical training from an institution recognised by the IRDAIfor a period of twenty-five hours when thePrincipal Officer and Broker Qualified Persons of the applicant are any of the following:<ul><li>Associate or Fellow of the Insurance Institute of India, Mumbai; or <\/li><li>Associate or Fellow of the Institute of Risk Management, Mumbai; or <\/li><li>Associate or Fellow of the Institute of Actuaries of India; or <\/li><li>Post graduate of the Institute of Insurance and Risk Management, Hyderabad; or <\/li><li>Associate or Fellow of the Chartered Insurance Institute, London; <\/li><li>Associate or Fellow of the Institute of Chartered Accountants of India, Institute of Cost Accounts and Works of India, Institute of Company Secretaries of India, Chartered Financial Analyst of ICFAI or any other qualifications as recognised by the IRDAI;<\/li><\/ul><\/li><li>The above-mentioned candidates also need to pass the insurance examination within one year from the end of the period of training which is conducted by the National Insurance Academy, Pune or any other examining body as recognised by the IRDAI.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Certificate_for_Principal_Officer_and_Broker_Qualified_Person\"><\/span>Certificate for Principal Officer and Broker Qualified Person<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Principal Officer and Broker Qualified Person of\nthe applicant also need to fulfil the following requirements:<\/p>\n\n\n\n<ul><li>The Principal Officer and Broker Qualified Person must obtain a valid certificate issued by National Insurance Academy, Pune or any other body recognised by Authority to file an application for Insurance Broker License.<\/li><li>Such certificate is valid for a period of three years from the date of issue.<\/li><li>The certificate issued to the Principal Officer and Broker Qualified Person mentions the name of the insurance broker who has sponsored the individual, their Aadhaar Card number or any other field as required by the IRDAI. <\/li><li>When the Principal Officer and Broker Qualified Person of an insurance broker wish to work for any other insurance broker,they can do so by filing an application with thebody recognised by the IRDAI through the proposed insurance broker along with a No-Objection Certificate issued by the present insurance broker. <\/li><li>If the present insurance broker does not issue a NOC to the Principal Officer and Broker Qualified Person within 30 days, it is deemed as no objection from the insurance broker to the switch over. <\/li><li>After receiving the request from the insurance broker, a revised certificate is issued by the NIA, Pune or any other IRDAI-recognised body to change the name of the insurance broker. <\/li><li>The data of Principal Officers and Broker Qualified Persons of insurance brokers in India must be shared by the NIA, Pine or any such body with the IRDAI in the prescribed manner.<\/li><li>If the Principal Officer or Broker Qualified Person are qualified and are already working with an insurance broker who holds the Insurance Broker License under Insurance Regulatory and Development Authority (Insurance Brokers) Regulations, 2013, they may continue to work with insurance brokers registered under these regulations. <\/li><li>In such case, the information of such Principal Officers and Broker Qualified Persons must be provided to NIA, Pune or any other body recognised by the IRDAI when the application to grant the Insurance Broker License registration is filed or within six months from the date of such registration. <\/li><li>After receiving this information, NIA Pune or any other body recognised by the Authority issues a certificate to the Principal Officers or Broker Qualified Persons.<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read, Also<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/how-to-get-insurance-broker-license-in-india\/\">How to Get Insurance Broker License in India<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Conditions_Relating_to_Insurance_Broker_License\"><\/span>Other Conditions Relating to\nInsurance Broker License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Insurance Broker License registration or renewal\nunder theInsurance Regulatory and Development Authority of India (Insurance\nBrokers) Regulations, 2018 is granted only when the following additional conditions\nare fulfilled:<\/p>\n\n\n\n<ol><li>The Insurance Broker must exclusively\nundertake the business of an insurance broker permitted under the IRDAI regulations.<\/li><li>The Insurance Broker must\ncomply with the provisions of the Insurance Act, the Insurance Regulatory and\nDevelopment Authority Act, 1999 and the Regulations in addition to the\ncirculars, guidelines and any other notifications issued by the IRDAI;<\/li><li>The Insurance Broker must\nalso inform the IRDAI about any information or particulars submitted to the\nAuthority previously, in writing. This must be done when such information is found\nto be false or misleading regarding any material by the IRDAI or when there is\nany material change in the information already submitted;<\/li><li>The Insurance Broker must\nalso take adequate measures for redressal of any grievances of its clients\nwithin 14 days of receiving such complaints and keep the IRDAI informed about\nthe number, nature and other details of the complaints received from such\nclients in format and manner as may be specified by the Authority;<\/li><li>The Insurance Broker must\nalso solicit and procure a reasonable number of insurance policies in\naccordance with their resources and as the number of Broker Qualified Persons associatedwith\nthe broker.<\/li><li>The Insurance Broker also\nneeds to maintain records in the format specified by the IRDAIthat lay downthe\ndetails ofeach policy solicited by the Insurance Broker as per the broker\nqualified person or other authorised persons.<\/li><li>The Insurance Broker cannot\nundertake any multi-level marketing for solicitation and procurement of\ninsurance products;<\/li><li>The Insurance Broker must\nalso ensure compliance of the Code of Conduct applicable to it;<\/li><li>The Insurance Broker must\nmaintain its books of accounts as specified in the IRDAI regulations.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fit_and_Proper_Criteria_Requirements\"><\/span>Fit and Proper Criteria\nRequirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The insurance broker needs to give full details of the\nfollowing if the answers to any of the answers are yes:<\/p>\n\n\n\n<ul><li>If the insurance broker\nhas ever registered or obtained a license from any of the regulatory\nauthorities under any law such as the Securities and Exchange Board of India, Reserve\nBank of India, IRDAI, PFRDA, FMC etc. <\/li><li>If the insurance brokerhas\ncarried on business under any name other than the name stated in the Insurance\nBroker License application.<\/li><li>If any regulatory\nauthority has refused or prevented the insurance broker from carryingout any business,\ntrade or profession for which a particular license, registration or permission\nis needed by law.<\/li><li>If the insurance\nbrokerhasever been censured, disciplined, suspended or refused any\nauthorisation, license or registration by any authority to perform any business\nactivity;<\/li><li>If the insurance broker\nhas been subject to any investigations or disciplinary proceeding or hasreceived\nany warning or reprimand by any regulatory authority;<\/li><li>If the insurance broker\nhas been convicted of any offence or subject to any pending proceedings under\nany law;<\/li><li>If the insurance broker\nhas been banned from entry at any profession or occupation at any time;<\/li><li>If the insurance broker\nhas any pending or commenced or resulting in conviction in the past for\nviolation of economic laws and regulations;<\/li><li>If the insurance broker\nhas any pending or commenced or resulting in conviction in the past against\nthem, then the details of the criminal prosecution must be provided;<\/li><li>If the insurance broker\nattracts any of the disqualifications envisaged under Section 164 of the\nCompanies Act 2013;<\/li><li>If the insurance broker\nhas been subject to any investigation at the instance of Government department\nor agency;<\/li><li>If the insurance broker\nhas ever been found guilty of a violation of rules, regulations or legislative\nrequirements by the customs, excise, income tax, foreign exchange or any other\nrevenue authorities;<\/li><li>If the insurance broker\nhas, at any time, come to the adverse notice of a regulator such as SEBI,\nIRDAI, DCA. However, details about any orders and findings made by regulators\nwhich have been later on reversed or set aside completely, it is not necessary\nto make a mention of the same.Conversely, if the case is reversed or setaside\non technical reasons like the limitation or lack of jurisdiction, etc. and not\non merit or the order of the regulator is temporarily stayed, and the appellate\nor court proceedings are pending, the same must be mentioned. <\/li><li>If any of the insurance\nbroker\u2019s group company, associate company or a related party has any license or\nregistration which is issued by the IRDAI.<\/li><\/ul>\n\n\n\n<p>The process of Insurance Broker License registration is\ncomplex, and in addition to all these requirements, there is a detailed code of\nconduct provided in the Regulations which must be followed by the Direct, Composite\nor Reinsurance Brokers.<\/p>\n\n\n\n<p>To ensure that all the requirements for Insurance\nBroker License are met, and the applicant comprises of all the relevant\ndocuments and information, it is advised to consult IRDAI experts regarding the\nprocess and execution of registration. Swarit Advisors are a team of\nexperienced professionals who can help you with your IRDAI registrations such\nas Web Aggregator License, Insurance Broker License, renewal, replies, business\nplan drafting, and much more.<\/p>\n\n\n\n<p class=\"text-left\"><b>Also, Read<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/web-aggregator-license-all-about-insurance-web-aggregation-in-india\/\">Web Aggregator License: All About Insurance Web Aggregation in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The insurance sector in India is rapidly developing and moving towards a more transparent and accessible market for insurance buyers. Insurance businesses that operate in India include insurance companies, web aggregators and insurance brokers. In order to start an insurance broking company, it is essential to obtain the Insurance Broker License. This guide lays down [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":11086,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[651],"tags":[652],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/11083"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=11083"}],"version-history":[{"count":8,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/11083\/revisions"}],"predecessor-version":[{"id":11092,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/11083\/revisions\/11092"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/11086"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=11083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=11083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=11083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}