{"id":8650,"date":"2020-01-24T09:00:41","date_gmt":"2020-01-24T03:30:41","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=8650"},"modified":"2020-06-22T12:12:10","modified_gmt":"2020-06-22T06:42:10","slug":"what-is-the-procedure-for-renewal-of-insurance-broker-license","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/","title":{"rendered":"What is the Procedure for Renewal of Insurance Broker License?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Life is uncertain, and nobody knows what adversity might knock your door at the next step. Therefore, it is wise to safeguard and protect our belongings through insurance. Follow the principle of \u201c<strong>Protection is better than Cure<\/strong>\u201d and reach out to a certified insurance broker to preserve your business. An <strong>insurance broker<\/strong> is an individual or company with a vast <strong>knowledge of insurance products<\/strong> and services. He acts as an intermediary between a <strong>customer seeking insurance policy and a prominent insurance company<\/strong>. However, after the license expiration, an insurance broker needs to apply for renewal of insurance broker license.&nbsp;<\/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-6a3a7391d035f\" 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-6a3a7391d035f\"  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\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/#Who_issues_the_Insurance_Broker_License\" title=\"Who issues the Insurance Broker License?\">Who issues the Insurance Broker License?<\/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\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/#Eligibility_Criteria_for_Insurance_Broker_Registration\" title=\"Eligibility Criteria for Insurance Broker Registration\">Eligibility Criteria for Insurance Broker Registration<\/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\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/#Fee_and_Capital_Structure_for_Insurance_Broker_License\" title=\"Fee and Capital Structure for Insurance Broker License\">Fee and Capital Structure for Insurance 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\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/#Minimum_Capital_Requirement\" title=\"Minimum Capital Requirement:\">Minimum Capital Requirement:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/#Net_Worth_Requirement\" title=\"Net Worth Requirement\">Net Worth Requirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/#Non_Refundable_Fee\" title=\"Non Refundable Fee:\">Non Refundable Fee:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/#Registration_and_Renewal_Fee\" title=\"Registration and Renewal Fee \">Registration and Renewal Fee <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/#Documents_Required\" title=\"Documents Required\">Documents Required<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/#What_is_the_Validity_of_Certificate_of_Insurance_Broker\" title=\"What is the Validity of Certificate of Insurance Broker?&nbsp;\">What is the Validity of Certificate of Insurance Broker?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/#Renewal_of_Insurance_Broker_License\" title=\"Renewal of Insurance Broker License\">Renewal of Insurance 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-11\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-procedure-for-renewal-of-insurance-broker-license\/#Final_Thoughts\" title=\"Final Thoughts\">Final Thoughts<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_issues_the_Insurance_Broker_License\"><\/span>Who issues the Insurance Broker License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The supreme officials of the Insurance Regulatory and Development Authority&nbsp;(IRDA) administer the <strong>activities of an insurance broker<\/strong>. Thereby, only the regulatory body of IRDA has the power to issue and sanction the <a href=\"https:\/\/swaritadvisors.com\/insurance-broker-license\"><strong>renewal of insurance broker license<\/strong><\/a>. &nbsp;As per the new version of IRDA Regulations, 2018, the insurance broker license shall be issued in three forms, namely:<\/p>\n\n\n\n<ul><li><strong>Direct Insurance Broker License<\/strong> : &#8211; A direct <strong>insurance broker assist clients<\/strong> about the <strong>insurance products<\/strong> and help them purchase a suitable policy. Thus, he earns a commission to sell a policy of the insurance company.&nbsp;<\/li><li><strong>Composite Insurance Broker License<\/strong> : &#8211; A composite insurance broker, has <strong>an official license<\/strong> to render a wide range of insurance services. IRDA is very selective while issuing such license.<\/li><li><strong>Reinsurance Broker License<\/strong> : &#8211; The reinsurance license applies to that broker who brings together the insurance companies with those clients who wishes to re-purchase their insurance policy. The reinsurance involves identifying the best policies and negotiating rates for the same.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_Insurance_Broker_Registration\"><\/span>Eligibility Criteria for Insurance Broker Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Here is the list of applicants who can apply for insurance broker License in India:<\/strong><\/p>\n\n\n\n<ul><li>A <strong><a href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\">private company registered under the Companies Act, 2013<\/a><\/strong> or its previous version.<\/li><li>Any LLP that got registered under the Limited Liability Partnership Act, 2008 can also apply for the issue and renewal of insurance broker license.<\/li><li>An individual\/person recognized by the Authority.<\/li><li>A registered Co-operative Society formed in accordance with the provisions of <strong>Co-operative Societies Act, 1912<\/strong> or other relevant law.<\/li><\/ul>\n\n\n\n<p><div class=\"shadow6\"><strong>Note :- <\/strong>\u00a0In case, the <strong>insurance broker license\u2019s applicant<\/strong> is a registered LLP, then the following individuals cannot be its partner:<\/div><\/p>\n\n\n\n<ul><li>A non-resident entity or a person who holds the residency of outside India.<\/li><li><strong>Foreign LLP registered<\/strong> under the laws of a foreign country.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fee_and_Capital_Structure_for_Insurance_Broker_License\"><\/span>Fee and Capital Structure for Insurance Broker License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The financial aspect plays a vital part in the whole procedure of <strong>renewal of insurance broker license<\/strong>. Let\u2019s segregate the <strong>financial requirement<\/strong> one by one:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Minimum_Capital_Requirement\"><\/span><strong>Minimum Capital Requirement:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>An applicant must have a <strong>minimum capital of INR 75 Lakh<\/strong> for the Direct Insurance Broker license;<\/li><li>Similarly, the Reinsurance Broker needs to have INR 4 Crore;<\/li><li>Lastly, the Composite Broker should have at least INR 5 Crore.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Net_Worth_Requirement\"><\/span><strong>Net Worth Requirement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>During the course of insurance broker registration, one has to maintain a minimum net worth of:<\/p>\n\n\n\n<ul><li><strong>50 Lakh for Direct Broker License,<\/strong><\/li><li>And, 50% of the minimum capital for Reinsurance and Composite Broker.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Non_Refundable_Fee\"><\/span><strong>Non Refundable Fee:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>Direct Broker: INR 25000<\/li><li>Reinsurance Broker: INR 50000<\/li><li>Composite Broker: INR 75000<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registration_and_Renewal_Fee\"><\/span><strong>Registration and Renewal Fee <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>For <strong>Direct Broker license<\/strong>, the <strong>registration fee is INR 50000<\/strong> while the <strong>renewal fee is INR 100000<\/strong>.<\/li><li>The registration fee for the Reinsurance Broker license is INR 150000 whereas the broker is liable to pay INR 300000 for its renewal.<\/li><li>And, for <strong>Composite Broker license<\/strong>, the registration and renewal fees are INR 250000 and INR 500000 respectively.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required\"><\/span>Documents Required<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Documentation is yet another essential factor that an applicant must comply. If you want to apply for the insurance broker license, keep a checklist of these documents along with the Form C of Schedule I of the&nbsp;<strong>IRDA Regulations, 2018<\/strong> <a href=\"http:\/\/ibai.org\/law-regulations\/\">[1]<\/a> :<\/p>\n\n\n\n<ul><li>A copy of your <strong>Memorandum of Association (MOA)<\/strong> and Articles of Association (AOA).<\/li><li>Provide information about the Principal Officer, and ensure that he meets the fit and proper criteria in <strong>Form G<\/strong> of <strong>Schedule I<\/strong>.<\/li><li>Also, submit a written declaration from the <strong>Principle Officer affirming<\/strong> that he along with the directors\/ partners has never been disqualified as per the <strong>Section 42D of the Insurance Act, 1938<\/strong>;<\/li><li>Comprehensive details about the directors, promoters, partners, and other key managerial personnel;<\/li><li>List entailing the <strong>qualification background<\/strong> of at least two qualified brokers;<\/li><li>Details of the existing bank account, principal bankers, and statutory auditors;<\/li><li>A complete list of the current as well as proposed shareholders along with the balance sheet of the applicant company;<\/li><li>In case, the shareholder(s) is a company or companies, provide the <strong>information of Board Resolution passed<\/strong> to invest and promote the applicant company;<\/li><li>Additional details, if needed.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Validity_of_Certificate_of_Insurance_Broker\"><\/span>What is the Validity of Certificate of Insurance Broker?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once the <strong>Insurance Regulatory and Development Authority<\/strong>&nbsp;enable the <strong>insurance broker license<\/strong>, it becomes valid for <strong>3 years<\/strong>&nbsp;from the date of issue. If the authority suspends or revoke the permit within the prescribed period of three years, then it shall remain no longer valid. As it is considered to be an illicit act to carry an <strong>insurance broker business<\/strong> without a <strong>certificate of registration<\/strong>, so one has to <strong>apply for the renewal of insurance broker license<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Renewal_of_Insurance_Broker_License\"><\/span>Renewal of Insurance Broker License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now that you have understood the importance of insurance broker registration to <strong>channelize the functions of a broker<\/strong>, it is further essential to perceive the renewal process. Follow these simple three steps if your <strong>insurance broker certificate<\/strong> is soon to get expired:<\/p>\n\n\n\n<ul><li>File an application to the IRDA at least 30 days before the date of expiry of insurance broker license.<\/li><li>You need to <strong>fill the renewal application<\/strong> in Form K of Schedule I<\/li><li>Then affix all the relevant documents with your application.<\/li><li>Lastly, pay the renewal fees as per the category of license you fall in, i.e., Direct Broker, <strong>Reinsurance Broker<\/strong>, and Composite Broker.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span>Final Thoughts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><div class=\"shadow4\">There are many perks of obtaining the insurance broker license as it helps to gain credibility and uplift your image in the market. You can only expand your <strong>insurance broker business<\/strong> with a license. So be regular with the renewal of insurance broker license. In case you need professional guidance, contact Swarit Advisors, a one-stop legal advisory.<\/div><\/p>\n\n\n\n<p class=\"text-left\"><b>Also, Read<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/educational-requirements-for-insurance-broker-license\/\">Insurance Broker Educational Requirements for Insurance Broker License<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Life is uncertain, and nobody knows what adversity might knock your door at the next step. Therefore, it is wise to safeguard and protect our belongings through insurance. Follow the principle of \u201cProtection is better than Cure\u201d and reach out to a certified insurance broker to preserve your business. An insurance broker is an individual [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":8655,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[651],"tags":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/8650"}],"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\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=8650"}],"version-history":[{"count":13,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/8650\/revisions"}],"predecessor-version":[{"id":11172,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/8650\/revisions\/11172"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/8655"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=8650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=8650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=8650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}