Letter of Intent (LOI) Requirement for Insurance Marketing Firm (IMF) Registration under IRDAI

Letter of Intent (LOI) Requirement for Insurance Marketing Firm (IMF) Registration under IRDAI. The Insurance Regulatory and Development Authority of India (IRDAI) regulates the licensing and functioning of Insurance Marketing Firms (IMFs) under the IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015. Before any applicant can file for the Certificate of Registration as an IMF Company, it is mandatory to obtain Letters of Intent (LOIs) from at least two insurance companies, mainly one from a Life Insurer and another from a General or Health Insurer, where confirming their willingness to associate with the proposed IMF once the license is granted.Letter of Intent (LOI) Requirement is a pre-licensing requirement for considering the proposed IMF has genuine business linkages and professional support from registered insurers, reflecting the applicant’s preparedness to commence operations in compliance with the regulatory need.
How many insurer tie-ups are permitted for IMF or Broker Company ?
Requirement of LOI from two Insurers
According to Regulation 8(2) of the IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015, every applicant must attach Letters of Intent from two different insurance companies along with its Form A (application for registration).

One LOI must be obtained from a Life Insurance Company.
The second LOI must be obtained from a General or Health Insurance Company.

These LOIs act as an acknowledgment from insurers that they have reviewed the applicant’s credentials and are open to entering into a distribution agreement once the IMF license is granted and without these two LOIs, the IMF application is considered incomplete and will not be processed further by IRDAI.
Purpose and Importance of the LOI
The Letters of Intent from insurers serve several important purposes:

Validation of Credibility: The LOIs indicate that reputable insurers have found the proposed IMF suitable for empanelment, ensuring the applicant’s credibility and seriousness in pursuing the business.

Regulatory Pre-Screening: IRDAI relies on the due diligence performed by the insurers while issuing LOIs to confirm the applicant’s professional and ethical suitability.

Operational Readiness: These letters prove that the applicant has begun establishing industry relationships necessary for business commencement immediately after licensing.

Transparency and Confidence: The mutual intent between the insurer and the applicant reflects market confidence and supports IRDAI’s objective of orderly insurance distribution.

Standard Format of Letter of Intent (From Insurance Company to IMF Applicant)
[On the Letterhead of the Insurance Company]
Date: [DD/MM/YYYY]
To, The Secretary, Insurance Regulatory and Development Authority of India (IRDAI) Sy. No. 115/1, Financial District, Nanakramguda, Hyderabad, Telangana – 500032
Sub: Letter of Intent in favour of XYZ LLP for carrying on Insurance Marketing Business
Dear Sir/Madam,
This is to confirm that [Name of the Insurance Company], having its registered office at [Registered Office Address], and registered with the Insurance Regulatory and Development Authority of India (IRDAI) as a [Life / General / Health] Insurance Company, hereby expresses its intent to enter into a professional association with XYZ LLP, having its registered office at [Applicant’s Registered Office Address], upon the grant of a valid Certificate of Registration to the said LLP by the Authority to act as an Insurance Marketing Firm (IMF) under the IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015.
We have reviewed the credentials and background of XYZ LLP, including the profile of its Principal Officer and Insurance Sales Person, and find them satisfactory for consideration as a potential Insurance Marketing Firm partner.
Upon issuance of the IMF registration certificate by IRDAI, our Company intends to:

Empanel XYZ LLP as an authorised Insurance Marketing Firm to distribute and market our approved insurance products.

Enter into a formal agency agreement with the IMF in accordance with the IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015 and the company’s internal compliance guidelines.

Provide necessary training, onboarding, and operational support to the IMF as required under the regulatory framework.

This Letter of Intent is issued solely for the purpose of facilitating the IMF registration process and does not constitute a binding contract. It shall remain valid for a period of six (6) months from the date of issue or until the completion of the registration process, whichever is earlier.
We wish XYZ LLP success in its registration process and future business operations.
Thanking you, Yours faithfully,
For [Name of the Insurance Company] [Signature] [Name of Authorized Signatory] [Designation] [Company Seal]
Practical Guidance for IMF Applicants
Applicants seeking IMF registration should ensure the following before approaching insurance companies for LOIs:

Prepare a Professional Dossier: Include company incorporation details, NOC from IRDAI for name approval, profiles of the Principal Officer and ISP, business plan, and infrastructure summary.

Approach Recognised Insurers: Target reputed life and general/health insurance companies with a clear distribution focus, such as LIC, HDFC Life, Bajaj Allianz, ICICI Lombard, or Care Health Insurance.

Be Ready for Insurer Due Diligence: Insurers may conduct their own evaluation of your office setup, manpower strength, and professional qualifications before issuing the LOI.

Timeline for Submission: Each LOI is typically valid for six months from the date of issue. Ensure your IMF application is filed with IRDAI within this validity period.

Attach LOIs with Form A: When filing the IMF registration application, both insurer LOIs must be attached as mandatory enclosures along with the firm’s own Letter of Intent, NOC, and incorporation documents.

Therefore, the issuance of Letters of Intent (LOIs) from insurers is a major preparatory step in the Insurance Marketing Firm registration process. By securing LOIs from both Life and General/Health Insurance Companies, the applicant demonstrates not only regulatory compliance but also genuine business potential and market confidence.
You may also know about the IMF Registration and how to get NOC from IRDAI for name application.

The Insurance Regulatory and Development Authority of India (IRDAI) regulates the licensing and functioning of Insurance Marketing Firms (IMFs) under the IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015. Before any applicant can file for the Certificate of Registration as an IMF Company, it is mandatory to obtain Letters of Intent (LOIs) from at least two insurance companies, mainly one from a Life Insurer and another from a General or Health Insurer, where confirming their willingness to associate with the proposed IMF once the license is granted.Letter of Intent (LOI) Requirement is a pre-licensing requirement for considering the proposed IMF has genuine business linkages and professional support from registered insurers, reflecting the applicant’s preparedness to commence operations in compliance with the regulatory need.

How many insurer tie-ups are permitted for IMF or Broker Company ?

Requirement of LOI from two Insurers

According to Regulation 8(2) of the IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015, every applicant must attach Letters of Intent from two different insurance companies along with its Form A (application for registration).

One LOI must be obtained from a Life Insurance Company.
The second LOI must be obtained from a General or Health Insurance Company.

Purpose and Importance of the LOI

The Letters of Intent from insurers serve several important purposes:

Validation of Credibility: The LOIs indicate that reputable insurers have found the proposed IMF suitable for empanelment, ensuring the applicant’s credibility and seriousness in pursuing the business.
Regulatory Pre-Screening: IRDAI relies on the due diligence performed by the insurers while issuing LOIs to confirm the applicant’s professional and ethical suitability.
Operational Readiness: These letters prove that the applicant has begun establishing industry relationships necessary for business commencement immediately after licensing.
Transparency and Confidence: The mutual intent between the insurer and the applicant reflects market confidence and supports IRDAI’s objective of orderly insurance distribution.

Standard Format of Letter of Intent (From Insurance Company to IMF Applicant)

[On the Letterhead of the Insurance Company]

Date: [DD/MM/YYYY]

To,
The Secretary,
Insurance Regulatory and Development Authority of India (IRDAI)
Sy. No. 115/1, Financial District,
Nanakramguda, Hyderabad,
Telangana – 500032

Sub: Letter of Intent in favour of XYZ LLP for carrying on Insurance Marketing Business

Dear Sir/Madam,

This is to confirm that [Name of the Insurance Company], having its registered office at [Registered Office Address], and registered with the Insurance Regulatory and Development Authority of India (IRDAI) as a [Life / General / Health] Insurance Company, hereby expresses its intent to enter into a professional association with XYZ LLP, having its registered office at [Applicant’s Registered Office Address], upon the grant of a valid Certificate of Registration to the said LLP by the Authority to act as an Insurance Marketing Firm (IMF) under the IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015.

We have reviewed the credentials and background of XYZ LLP, including the profile of its Principal Officer and Insurance Sales Person, and find them satisfactory for consideration as a potential Insurance Marketing Firm partner.

Upon issuance of the IMF registration certificate by IRDAI, our Company intends to:

Empanel XYZ LLP as an authorised Insurance Marketing Firm to distribute and market our approved insurance products.
Enter into a formal agency agreement with the IMF in accordance with the IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015 and the company’s internal compliance guidelines.
Provide necessary training, onboarding, and operational support to the IMF as required under the regulatory framework.

We wish XYZ LLP success in its registration process and future business operations.

Thanking you,
Yours faithfully,

For [Name of the Insurance Company]

[Signature]

[Name of Authorized Signatory]

[Designation]

[Company Seal]

Practical Guidance for IMF Applicants

Applicants seeking IMF registration should ensure the following before approaching insurance companies for LOIs:

Prepare a Professional Dossier: Include company incorporation details, NOC from IRDAI for name approval, profiles of the Principal Officer and ISP, business plan, and infrastructure summary.
Approach Recognised Insurers: Target reputed life and general/health insurance companies with a clear distribution focus, such as LIC, HDFC Life, Bajaj Allianz, ICICI Lombard, or Care Health Insurance.
Be Ready for Insurer Due Diligence: Insurers may conduct their own evaluation of your office setup, manpower strength, and professional qualifications before issuing the LOI.
Timeline for Submission: Each LOI is typically valid for six months from the date of issue. Ensure your IMF application is filed with IRDAI within this validity period.
Attach LOIs with Form A: When filing the IMF registration application, both insurer LOIs must be attached as mandatory enclosures along with the firm’s own Letter of Intent, NOC, and incorporation documents.