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Know More About IRDA LICENSE
Introduction and Its Compliance
IRDA License is granted by the Insurance Regulatory and Development Authority of India (IRDAI) to the entities or individuals that wish to act as insurance brokers, agents, corporate agents, web aggregators, and third-party administrators. It is an obligatory licence as per the provisions of Section 8 of the IRDAI Act, 1999 for carrying any insurance business in India. Lawfinity provides the entire help in obtaining the IRDA license and maintaining IRDAI compliance provisions and regulations.
Why It Is Needed
You will be needing to hold an IRDA License to operate legally in the insurance industry in India. Regardless of if they sell insurance coverage, provide advisory services, or administrate policies as intermediates, companies need to be in possession of a valid IRDAI license. Without it, any insurance business or duty is deemed to be unauthorized and be subject to penalties or punishment.
Benefits and Advantages
- Legal Authorization to Sell Insurance Holding an IRDA license provides official recognition and legal authority to distribute and manage insurance products.
- Increased Business Credibility A licensed entity is more trusted by customers, insurers and regulatory bodies, improving professional credibility.
- Wider Market Access License holders can offer services across various insurance segments—life, health, general and reinsurance—depending on the license type.
- Revenue Opportunities IRDA license opens multiple income streams through commissions, policy management and insurance consulting.
- Association with Top Insurance Companies Licensed brokers and agents are eligible to collaborate with major insurers for selling and servicing policies.
Eligibility Criteria
- Must be a registered company or LLP (for corporate agents/brokers)
- Individuals must meet qualification and training standards prescribed by IRDAI
- Minimum capital requirements (varies by license type, e.g., ₹75 lakh for direct brokers, ₹5 crore for reinsurance brokers)
- Key managerial persons should have relevant experience and a clean legal and financial record
- Must have infrastructure and IT systems in place to manage insurance operations
Documents Required
- Certificate of Incorporation
- MOA & AOA with insurance objects
- Net worth certificate and audited financial statements
- Details of directors/partners and key management personnel
- Infrastructure and IT readiness documents
- KYC documents of promoters and directors
- Proof of educational qualifications and training completion (for individuals)
- Business plan and projected financials
- Professional indemnity insurance (for brokers)
Steps for Applying
- License Type Identification: Lawfinity helps determine the appropriate IRDA license type based on your business model.
- Company Setup: Assist with company incorporation and capital requirements as per IRDAI norms.
- Documentation Preparation: Complete collection and verification of documents as required by IRDAI.
- Online Filing: Submission of application through the IRDAI BAP portal.
- IRDAI Review: Clarification and inspection process by the authority.
- Grant of License: Upon successful scrutiny, IRDAI issues the license with a unique registration number.
Penalties
- Operating without an IRDA license, misrepresentation of policies, non-compliance with renewal and reporting norms or engaging in unfair practices can attract hefty fines, license cancellation, suspension or legal action under the IRDAI Act and associated regulations.
Timelines
The licensing process typically takes 90 to 120 days from the date of application submission, depending on the category of license and completeness of documentation. Lawfinity ensures thoroughness and timely follow-ups to avoid delays.
Timelines may vary depending on document verification and government approvals.
Fee
Frequently Asked Questions
Because every great business starts with the right answers.
Anyone involved in selling, advising or managing insurance policies—agents, brokers, TPAs, web aggregators—must obtain an IRDA license.
Yes, individuals can apply to become insurance agents after meeting training and qualification requirements.
Typically, licenses are valid for three years, subject to renewal by complying with conditions.
Not usually. One must apply separately for each license type (e.g., broker, TPA) and adhere to IRDAI segregation norms.
Direct brokers must maintain at least ₹75 lakh, composite brokers ₹5 crore and reinsurance brokers ₹4 crore.
Yes, IRDAI mandates office space, infrastructure and trained personnel to ensure proper operations and record-keeping.
Yes, subject to 49% FDI cap for insurance intermediaries under the automatic route.
Lawfinity provides expert advisory, registration services, compliance support and end-to-end coordination with IRDAI officials.
Delayed renewals can result in lapse of license and discontinuation of insurance operations until fresh approval is obtained.
Voices of Success
Hear from those who have thrived with us and discover how businesses have transformed and grown with our expert guidance and support.
Anil Yadav
Shaperz India Grain Private Limited
“From FSSAI to Trade License, Lawfinity handled all our approvals efficiently. One-stop solution for all licensing needs.”
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