How To Become An Insurance Broker in India?
How To Become An Insurance Broker in India? All You Need to Know!
Insurance broking is one of the few rewarding career options across the planet. It allows you to create an enthralling career, gain enough monetary benefits, ready to spend quality time together with your family, etc. In other terms, working as an insurance agent offers unlimited flexibility in your work schedule, boundless opportunities to make an enormous difference in other person lives.
Why are insurance brokers so special?
Insurance brokers are majorly independent. They don’t have an agreement with particular insurers. They represent insurance buyers and take forward the applications to insurers on behalf of their clients. In short, they're not appointed by insurers. Instead, they educate the clients about several insurance products from different insurance companies and help them choose the simplest among them.
But there are many of us wondering, ‘Insurance Agents and Insurance Brokers – Are they same?
Knowing the difference between agents and brokers can help the policyholder to use their services effectively.
So if you're curious about the way to become one, let’s inspect the procedures to become an insurance agent in India.
What are the important documents required to become an insurance broker?
• Filled and signed form
• Declaration form signed by a minimum of two directors or partners
• Memorandum of Association of the corporate
• IT returns for the last 3 years of individual shareholders
• Net worth certificates and an affidavit showing the source of the invested funds of individual shareholders
• Article of Association of the corporate
• Demand draft against the licensing fee
• Detailed statement verified and authorized by the auditor – A shareholding pattern of the corporate, the complete names of the corporate shareholders, total number of shares held, exact share certificate numbers, and folio numbers
• Audited record of the corporate
• Original proof of your fixed deposit amount (with any scheduled bank)
• Annual reports of the shareholder companies (for last 3 years)
• Board resolution of the shareholder company regarding the investment within the said company.
• Auditors certificate regarding NBFC status of the shareholding company
• If the share company is an NBFC (Non-banking finance company), then NDA is required from RBI NA
• Detailed CV and attested testimonials of the Principal Officer
• Training certificate of the Principal Officer
• Detailed CV and testimonials of the key managerial persons.
• Details of the persons qualified and trained along with their testimonials and therefore the training certificates.
• List of persons liable for procuring insurance business and their testimonials.
• Necessary proof of infrastructure, office space, trained employees, etc.
• List of all prospective clients with expected premium
• Business and income projection for subsequent 3 years with class wise break-up.
What else you would like to understand about becoming an insurance agent in India?
• The declaration a part of the appliance format has got to be signed by the 2 directors
• Remit the requisite fee as per the category of an insurance agent, as prescribed under Schedule II of IRDA (Insurance Brokers) Regulations, 2002.
• Printed copy of Memorandum and Articles of Association issued by Registrar of Companies is required.
• The main objects of the Memorandum and Articles of Association should be as per regulation 9(2) (H) of the IRDA’s (Insurance Brokers) Regulations, 2002.
• One Principal Officer may be a must during a broking company
• A certificate that's certified by the auditors, stating the names of shareholders, shares held, its percentage, share certificate numbers, folio numbers, etc
• It should even have the small print of its authorized and paid-up capital position
• A certificate is required from the auditors showing the present deployment of its resources
• A bank certificate showing the present balance in its account
• The Principal Officer has got to submit an undertaking that none of the administrators or the workers of the corporate are holding any directorships or employment in or represent the other insurance-related entity
• The Director and therefore the Principal Officer has got to submit an undertaking that the broking premises including the branch premises are going to be used solely for running the broking business only
Source: The above procedures and documentation lists are taken from the official website of the insurance agent Association India.