How to Get Insurance Broker License in India: A Complete Step-by-Step Guide
Introduction: Why Become an Insurance Broker in India?
The insurance sector in India is booming — from life to health to commercial risk coverage, demand is rising faster than ever.
And at the heart of this growth are insurance brokers — trusted advisors who connect clients with the right insurers, policies, and protection.
But before you start your own insurance broking business, you’ll need to obtain an IRDAI-approved insurance broker license.
If you’re wondering how to get an insurance broker license in India, this guide walks you through every step — from eligibility and capital requirements to application and approval.
What is an Insurance Broker?
An insurance broker is an independent professional or company that helps clients find the best insurance solutions by comparing multiple insurers. Unlike insurance agents (who work for one company), brokers represent the customer’s interest — offering impartial advice and post-sale support like claim handling and renewal assistance.
Why You Need a License from IRDAI
The Insurance Regulatory and Development Authority of India (IRDAI) regulates all insurance intermediaries in India. To operate legally as a broker, you must hold a valid Certificate of Registration issued under the IRDAI (Insurance Brokers) Regulations, 2018.
This ensures:
✅ Transparency and professionalism
✅ Consumer protection
✅ Ethical and compliant business practices
Types of Insurance Broker Licenses in India
When you apply for a license, you can choose from three main categories:
Direct Broker: Deals directly with clients and insurers for life, health, and general insurance.
Reinsurance Broker: Specializes in arranging reinsurance for insurance companies.
Composite Broker: A combination of both direct and reinsurance broking.
Each type has its own capital and compliance requirements (explained below).
Step 1: Meet Eligibility and Capital Requirements
The first step in getting your insurance broker license is meeting the financial and organizational eligibility.
| Type of Broker | Minimum Capital | Minimum Net Worth |
|---|---|---|
| Direct Broker | ₹75 lakh | ₹50 lakh |
| Reinsurance Broker | ₹4 crore | 50% of capital requirement |
| Composite Broker | ₹5 crore | 50% of capital requirement |
🔸 You must also deposit a fixed security amount (e.g., ₹10 lakh for Direct Brokers) in a scheduled bank.
🔸 The business must be a registered company, LLP, or cooperative society under Indian law.
Step 2: Appoint a Qualified Principal Officer
Every broker must have a Principal Officer (PO) — a certified professional responsible for compliance, operations, and reporting to IRDAI.
The Principal Officer must:
Complete the IRDAI training and examination.
Have relevant educational qualifications and industry experience.
Oversee all brokerage functions and ensure ethical practices.
You’ll also need qualified staff who have passed the broker training program approved by IRDAI.
Step 3: Prepare Documentation and Office Setup
Before applying, make sure you have:
Memorandum & Articles of Association (with “insurance broking” as an objective)
Shareholding details and proof of paid-up capital
Organizational chart and staff details
Infrastructure setup (office, IT systems, recordkeeping tools)
Three-year business plan and projected financials
Net worth certificate from a chartered accountant
💡 Tip: Your physical office should reflect a professional environment suitable for client meetings and data management.
Step 4: Apply Online via IRDAI Portal
Here’s how to submit your license application:
Register on the IRDAI Broker Application Portal.
Fill out Form B (Schedule I) with all required details.
Upload documents and pay the non-refundable application fee.
Respond to any queries raised by IRDAI during review.
If your application meets all criteria, IRDAI will issue your Certificate of Registration, valid for three years.
Step 5: Maintain Compliance After Licensing
Getting the license is just the beginning — you must also stay compliant:
Maintain minimum net worth and capital requirements.
File annual and half-yearly returns with IRDAI.
Renew your license at least 30 days before expiry.
Provide ongoing staff training.
Maintain membership with the Insurance Brokers Association of India (IBAI).
Failing to meet compliance can lead to suspension or cancellation of your license.
Expert Tips to Succeed as a Licensed Broker
✅ Keep transparent communication with clients — honesty builds reputation.
✅ Invest in CRM and data tools to manage policies and claims efficiently.
✅ Regularly review IRDAI circulars and updates.
✅ Partner with consultants or compliance experts like Helios Global to stay audit-ready and ahead of regulatory changes.
Frequently Asked Questions (FAQs)
1️⃣ How long does it take to get an insurance broker license in India?
Usually, it takes 3–6 months depending on the accuracy of documents and IRDAI’s review process.
2️⃣ Can an individual get a broker license?
No. You must register as a company, LLP, or cooperative society to apply.
3️⃣ Is IRDAI training mandatory for brokers?
Yes. The Principal Officer and key staff must undergo IRDAI-approved training and certification.
4️⃣ How much does it cost to become an insurance broker in India?
Expect initial setup costs of ₹75 lakh or more (for direct brokers), including application fees, infrastructure, and deposits.
Conclusion
Starting your journey as an insurance broker in India can be incredibly rewarding — both financially and professionally. With the right preparation, compliance, and guidance, you can build a long-term business based on trust and transparency.
If you want expert help in understanding how to get an insurance broker license in India, setting up your documentation, or ensuring compliance with IRDAI rules — Helios Global can guide you every step of the way.
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