Insurance Broker License

Types of Insurance Broker Licenses in India

IRDAI recognises three principal categories of insurance brokers under the Insurance Brokers Regulations, 2018.

• Direct Insurance Broker: A Direct Insurance Broker assists individuals and businesses in obtaining suitable insurance coverage from registered insurers. Direct brokers may undertake permitted solicitation, insurance placement, risk advisory and claims assistance activities. Direct insurance brokers are classified into Direct Broker (Life), Direct Broker (General) and Direct Broker (Life & General), depending on the approved scope of business. The minimum capital requirement for a Direct Insurance Broker is Rs.75 lakh.

• Reinsurance Broker: A Reinsurance Broker facilitates reinsurance arrangements between insurance companies and reinsurers. Reinsurance enables an insurer to transfer part of its insurance risks to another insurer or reinsurer. Reinsurance brokers may assist with reinsurance placement, treaty arrangements and related advisory services within their authorised activities. The minimum capital requirement for a Reinsurance Broker is Rs.4 crore.

• Composite Insurance Broker: A Composite Insurance Broker is authorised to undertake both direct insurance broking and reinsurance broking activities, subject to its registration conditions. This category is suitable for businesses intending to serve policyholders as well as insurers seeking reinsurance arrangements. The minimum capital requirement for a Composite Insurance Broker is Rs.5 crore.

Comparison of Insurance Broker Categories

Eligibility Criteria for Insurance Broker License in India

Applicants seeking an IRDAI Insurance Broker License must satisfy the eligibility requirements prescribed under the applicable insurance broking regulations.

• Eligible Business Entities: Eligible applicants may include companies incorporated under the Companies Act, 2013, Limited Liability Partnerships registered under the LLP Act, 2008, registered cooperative societies and other entities specifically recognised under the IRDAI regulations. The applicant must be legally established and authorised through its constitutional documents to undertake the proposed insurance broking activities.

• Minimum Capital Requirements: Applicants must satisfy the minimum paid-up capital or contribution requirement applicable to the selected broker category. The capital must come from permitted sources, and promoter investment must comply with the prescribed own-funds conditions.

• Principal Officer Requirements: Every applicant must appoint a qualified Principal Officer responsible for supervising its insurance broking operations. The Principal Officer must satisfy applicable educational qualification, professional training, examination and fit-and-proper requirements.

• Fit and Proper Criteria: IRDAI evaluates the integrity, financial soundness, qualifications and suitability of the applicant's promoters, directors, partners, Principal Officer and relevant management personnel.

• Office and Operational Infrastructure: The applicant must establish suitable office infrastructure, operational arrangements, qualified personnel and necessary systems to carry out insurance broking activities.

• Business Plan: A proposed insurance broker must submit a credible business plan explaining its business model, intended customer segments, financial projections, operational arrangements and management structure.

Minimum Capital, Net Worth and Deposit Requirements

Insurance broker registration involves three separate financial requirements: minimum capital, minimum net worth and statutory bank deposits.

These amounts reflect Regulations 19, 22 and 23 of the IRDAI (Insurance Brokers) Regulations, 2018, subject to applicable amendments.

• Capital Requirement: Minimum capital refers to the prescribed paid-up equity capital or eligible contribution required to establish the insurance broking business. LLP contributions must comply with the applicable cash contribution requirements.

• Net Worth Requirement: Insurance brokers must maintain their prescribed minimum net worth throughout the period of registration. Under the 2018 regulations, an auditor-certified net worth certificate must be submitted every half-year.

• Fixed Deposit Requirement: Insurance brokers must maintain the prescribed deposit with a scheduled bank before commencing business. The deposit is subject to IRDAI's regulatory lien and cannot be withdrawn or pledged contrary to the applicable regulations.

Minimum capital, net worth and statutory deposits should not be confused with government application fees. They represent separate financial obligations.

Documents Required for Insurance Broker License

The documents required for Insurance Broker Registration depend on the applicant's legal structure, broker category and regulatory circumstances. The following documents are generally required:

• Completed IRDAI application in Schedule I, Form B, or the prescribed electronic application format.
• Certificate of Incorporation or LLP Registration Certificate.
• Memorandum and Articles of Association or LLP Agreement.
• PAN and registered office details of the applicant.
• Shareholding or partnership contribution details.
• Identity, address and professional details of promoters, directors and partners.
• Principal Officer's educational qualification, training and examination certificates.
• Fit-and-proper declarations of relevant persons.
• Audited financial statements and applicable net worth certificates.
• Evidence of minimum capital or eligible contributions.
• Proposed insurance broking business plan.
• Organisational structure and management details.
• Office infrastructure and operational information.
• Details of proposed Broker Qualified Persons.
• Relevant board resolutions or partner authorisations.
• Additional declarations, undertakings or documents requested by IRDAI.

IRDAI may seek clarifications, additional evidence or revised documents during the registration process.

Insurance Broker License Registration Process in India

The application process must comply with the IRDAI (Insurance Brokers) Regulations, 2018, as amended, and the applicable regulatory application procedure.

Step 1: Select the Insurance Broker Category

Determine whether the proposed business requires Direct Broker, Reinsurance Broker or Composite Broker registration. The category should reflect the intended business activities and available capital.

Step 2: Incorporate an Eligible Business Entity

Establish a company, LLP or another eligible legal entity. Ensure its constitutional documents permit the proposed insurance broking activities.

Step 3: Arrange Minimum Capital and Management

Arrange the required capital, appoint eligible management personnel and identify a qualified Principal Officer and other required personnel.

Step 4: Prepare the Business Plan and Documents

Prepare the proposed business plan, financial information, promoter details, management declarations and documents required for regulatory evaluation.

Step 5: Submit the IRDAI Application

Submit the prescribed application, generally using Schedule I, Form B or the applicable online procedure, together with supporting documents and the prescribed application fee.

Step 6: IRDAI Scrutiny and Clarifications

IRDAI examines the applicant's financial capability, promoter suitability, management qualifications, infrastructure and regulatory compliance. The Authority may request additional information, explanations or modifications to the application.

Step 7: In-Principle Approval

Where applicable, IRDAI may grant in-principle approval subject to fulfilment of specified requirements. The applicant must satisfy the conditions communicated by the Authority before final registration.

Step 8: Certificate of Registration

After satisfactory evaluation and completion of applicable requirements, IRDAI may issue the Certificate of Registration in the prescribed Form J.

The applicant may commence authorised insurance broking activities only after obtaining registration and satisfying the applicable commencement conditions.

Insurance Broker License Fees and Cost in India

The total cost of obtaining an Insurance Broker License includes regulatory application fees, applicable registration or annual fees, capital requirements, statutory deposits, operational expenses and professional assistance charges.

Application Processing Fees

The IRDAI (Insurance Brokers) Regulations, 2018, prescribe the following application processing fees:

Application processing fees are generally non-refundable.

Important Fee Changes in 2026

The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, amended Section 42D of the Insurance Act, 1938. From 5 February 2026, the earlier three-year registration renewal system was discontinued and replaced with a continuing registration arrangement subject to the applicable annual fee. IRDAI issued Circular No. IRDAI/INT/CIR/MISC/41/3/2026 dated 16 March 2026 to prescribe transitional arrangements for annual fee payments and registration certificates. Subsequent circulars extended aspects of these transitional arrangements.

Accordingly, applicants should confirm the latest applicable fee schedule and transition provisions before payment. Historical three-year renewal fees should not be described as the current renewal requirement.

Other Registration Expenses

Apart from regulatory fees, applicants should consider company or LLP incorporation costs, statutory capital, bank deposits, office infrastructure, employee expenses, Principal Officer training, examinations, professional indemnity insurance and compliance consultancy.

Compliance Calendar LLP can assist applicants in identifying the applicable requirements and understanding their estimated setup costs.

Insurance Broker License Validity and Annual Fee Requirements in 2026

Insurance broker registration underwent an important change in 2026. Under the earlier regulatory provisions, insurance broker Certificates of Registration were generally issued for three years and required periodic renewal. However, following the amendment to Section 42D of the Insurance Act, 1938, effective 5 February 2026, insurance intermediary registration continues subject to payment of the applicable annual fee and fulfilment of regulatory conditions until it is suspended or cancelled.

Therefore, insurance brokers should focus on maintaining registration conditions, complying with applicable annual fee requirements and completing ongoing regulatory filings rather than relying on the former three-year renewal process.

The applicable annual fee and payment procedure must be checked against the latest IRDAI regulations and transitional circulars.

Post-Registration Compliance for Insurance Brokers

Obtaining an Insurance Broker License is only the beginning of the regulatory compliance obligations. Registered insurance brokers must comply with continuing requirements under the applicable insurance laws and IRDAI regulations.

• Maintenance of Capital and Net Worth: Insurance brokers must maintain the applicable minimum capital and net worth requirements. Any shortfall must be addressed in accordance with regulatory provisions.

• Professional Indemnity Insurance: Registered brokers must maintain the prescribed professional indemnity insurance coverage, subject to applicable conditions and permitted exemptions.

• Qualified Personnel: Insurance brokers must maintain a qualified Principal Officer and appropriately trained Broker Qualified Persons for the relevant insurance broking activities.

• Financial Reporting and Audit: Insurance brokers must maintain proper books of account, undergo applicable audits and submit financial statements, net worth certificates and other regulatory returns within prescribed timelines.

• Client Protection and Conduct Requirements: Brokers must comply with applicable conduct obligations concerning client disclosures, insurance recommendations, confidentiality, conflicts of interest, remuneration and claims assistance.

• Annual Fee Compliance: Insurance brokers must comply with the applicable annual fee provisions introduced under the amended Section 42D of the Insurance Act, 1938.

• Regulatory Reporting: Material changes in management, shareholding, control, business arrangements or other prescribed matters must be reported to or approved by IRDAI as applicable.

• Statutory Business Compliance: Insurance broking entities must also comply with relevant provisions of the Companies Act, 2013, the LLP Act, 2008, taxation laws, employment laws and FEMA requirements, wherever applicable.

Why Choose Compliance Calendar LLP for Insurance Broker License?

Compliance Calendar LLP offers professional assistance to businesses seeking Insurance Broker Registration and related regulatory compliance support. Our services include assessing the applicant's eligibility, identifying the appropriate broker category, explaining capital requirements, reviewing business documentation and assisting with IRDAI application preparation.

We also provide assistance with regulatory clarification responses, corporate compliance, documentation review and applicable post-registration obligations. Our objective is to help applicants understand the regulatory requirements, prepare accurate documentation and minimise avoidable application errors. Final registration remains subject to IRDAI's independent assessment and approval.