Overview of Insurance Company License
The ability to buy and sell insurance products is granted by holding an insurance company license. The Insurance Regulatory and Development Authority of India (IRDAI) was established as a nodal organization to govern the insurance sector in India with the intention of obtaining an IRDAI insurance license for your insurance company
The state insurance commissioner is in charge of issuing the license for the purpose of purchasing and offering various types of insurance, such as life and disability, health, auto, and worker's compensation. Anyone who resides in one state but sells insurance in neighboring states is required to have an IRDA insurance license for each state. Although it is not necessary to collaborate with an enrolled office to obtain the license, it is necessary once you intend to work jointly
Before submitting an application for an insurance company license, it is required that all components get a Certificate from the Authority. The IRDA can provide the license required for several forms of insurance, such as life insurance, fire insurance, marine insurance, and so forth. In any case, it is important to keep in mind that the license for a life insurance company cannot be combined with another type of insurance company.
Mission of IRDA License
- The purpose of the IRDAI license requirement is to make sure that the insurance industry complies with all current rules and regulations.
- In addition to assuring the public and the authorities that proper laws and regulations, as well as extra care and protection, are followed while conducting insurance business, the IRDA insurance license necessitates that it be highly controlled.
- In addition to assuring the public and the authorities that proper laws and regulations, as well as extra care and protection, are followed while conducting insurance business, the IRDA insurance license necessitates that it be highly controlled.
- It makes sure that there is a healthy balance between insurance companies and customers.
- Insurance contracts are agreements that guarantee the policyholder's financial security in the case of a specific occurrence.
Types of Insurance Licence
Registration Process
- A candidate may submit an application for additional security, general, health, business only, or reinsurance business during the registration process for obtaining an insurance company license.
- After accepting an application, the Authority may request more information or an explanation related to the application.
- Following fulfilment, the Authority may grant permission, at which time the candidate must fill a new application in Form IRDAI/R2 for the issuance of a certificate of registration
- By documenting the justification as a physical copy, the Authority may reject the request for the issuance of an order for a registration form.
- A candidate who feels that their choice was unfair must file a complaint with the Securities Appellate Tribunal within 30 days of receiving the letter of dismissal.
Requirements for IRDA insurance license
- 100 crores of capital are needed for the insurance industry, and 200 crores for reinsurance.
- Any prior application for opening an insurance company is not turned down.
- IRDAI has not revoked or cancelled the certificate.
- The name of the business must contain an insurance company word.
- For a foreign firm or a non-resident Indian, 26% must be held by the respective party.
- Must receive approval from the Reserve Bank of India.
Paperwork
- Proof of equity capital for a 100 crore insurance company
- Proof of Equity Capital for a 200 crore Reinsurance Business
- The directors' names, addresses, and educational backgrounds
- Proof of the quantity of shares issued to each shareholder and promoter.
- A prospectus certified for authenticity
- Verified copy of the insurer's common forms.
- Original receipt attesting to the payment of the business class fee.
Duration
- Irda insurance licensees would have a 12-month expiration date.
- For India's insurance company license to be renewed, the applicant must submit a new application
Renewal
- Fill out the IRDA/R5 application before the end of the year.
- The application would be accepted by the authorities with a delay penalty of 10% of the fee if it was not completed by December 31st of each year.
- The fee will be deposited into the account, which is kept with the Reserve Bank of India by the Insurance Regulatory and Development Authority of India.
- Proof of 50,000 rupees for each type of insurance.
