Registration of Insurance Companies

And Licensing of Insurance Agents

Submitted To
Prof. Abhishek Parikh
Faculty
V.M.P.I.M
Submitted By
Mansi Modi (59)
Manali Parikh (61)
Janki Patel (73)
Ayushi Thakar (95)
Ishan Turakhia (98)
Registration
To carry on the business, Insurance companies should be registered with
the IRDA. The application for registration should be made in such a
manner as may be determined by it and accompanied by the following:-

1. A certified copy of the memorandum and articles of association.

2. Name, address and occupation of directors.

3. A statement of the class (es) of insurance business done or to be done

along with a statement of deposits with the RBI together with its certificate
showing the amount deposited.
Contd….
The insurance companies are required to deposit with the RBI on behalf of
the govt., in cash or approved security in case of

a. Life business, a sum equivalent of 1% of total gross premium not

exceeding Rs. 10 crore written in India in any financial year.

b. General business, a sum equivalent to 3% of total gross premium not

exceeding Rs. 10 crore, within India in any financial year.

c. Reinsurance business, Rs.20 crore; Rs. 1 lakh where business in marine

insurance only and relates exclusively to country craft or its cargo or
both. The deposit by cooperative life insurance or assurance companies
should be Rs. 2 lakh.
 A declaration verified by an affidavit by the principal officer of the insurer that
the requirement of paid-up capital (Rs. 100 crore and Rs. 200 crore for
life/general and reinsurance business, respective business) or working capital
(Rs. 15000 in case of cooperative insurance/ assurance company) have been
complied with .
 A certified copy of the

i) Published prospectus if any and

ii) Standard policy forms of the insurance and statements of the assured rates,
advantages, terms and conditions to be offered in connections with insurance
policies, together with a certificate in the connection with the life business by
an actuary that such rates/advantages/terms and conditions are workable and
sound.
 The receipt showing payment of fee (as determined by IRDA regulations) not
exceeding Rs. 50000 for each class of business.
 Cancellation of Registration
 Renewal of registration
 Restriction on Name
 Capital Requirement
 Promoter’s holding
 Deposits
 Reservation of Deposits
 Refund of Deposit
Licensing of Insurance Agents
 An insurance agent is a licensed agent with the IRDA who
receives /agrees to receive payment by way of commission /other
remuneration in consideration of his soliciting /procuring insurance
business, including continuance , renewal or revival of policies .

 The IRDA ,or an officer authorized by it, would issue a license to

act as an insurance agent on payment of fee not exceeding Rs.250.
Eligibility
 A license must be obtained form the IRDA to act as an insurance agent.
 The license would be issued to an individual, a company or a firm.
 The individuals/directors of companies /partners of firms should not

i. Be minor,

ii. Have been found of unsound mind by a court of competent jurisdiction ,

iii. Have been found guilty of criminal misappropriation /breach of trust ; or

cheating /forgery; or an abatement of, or attempt to , commit any such
offence by a court of competent jurisdiction .
Contd….
iv. Have not been found in the course of

a) Any judicial proceeding relating to any insurance policy/winding up

of an insurance company

b) An investigation of the affairs of an insurer :

Moreover they should

 Possess the requisites qualification an practical training for a period
not exceeding 12 months
 Have passed an examination prescribed by the IRDA
 Not violate the code of conduct as specified by the IRDA .
Contd….
 Qualifications of the Applicant : The applicant shall possess the minimum
qualification of a pass in 12th Standard or equivalent examination conducted
by any recognised Board/Institution, where the applicant resides in a place
with a population of five thousand or more as per the last census, and a pass
in 10th Standard or equivalent examination from a recognised Board/
Institution if the applicant resides in any other place.
 Practical Training : (1) The applicant shall have completed from an
approved institution, at least, one hundred hours’ practical training in life or
general insurance business, as the case may be, which may be spread over
three to four weeks, where such applicant is seeking licence for the first time
to act as insurance agent.
Contd….
 Provided that the applicant shall have completed from an approved
institution, at least, one hundred fifty hours’ practical training in life
and general insurance business, which may be spread over six to eight
weeks, where such applicant is seeking licence for the first time to act
as a composite insurance agent.
 An applicant, who has been granted a licence after the commencement
of these regulations, before seeking renewal of licence to act as an
insurance agent, shall have completed, at least twenty-five hours’
practical training in life or general insurance business, as the case may
be, from an approved institution.

 
Contd….
 Provided that such applicant before seeking renewal of licence to act as a composite

insurance agent shall have completed from an approved institution, at least, fifty hours’

practical training in life and general insurance business.

 Examination : The Applicant shall have passed the pre-recruitment examination in

life or general insurance business, or both, as the case may be, conducted by the

Insurance Institute of India, Mumbai, or any other examination body. 

 Fees Payable :

(1) The fees payable to the Authority for issue or renewal of licence to act as insurance

agent or a composite insurance agent shall be rupees two hundred and fifty.

  (2) The additional fees payable to the Authority, under the circumstances mentioned in

sub-section

(3) of section 42 of the Act, shall be rupees one hundred.

Contd….
 Any individual who acts as an agent sans a license and the insurer who
appoints so would be punishable with a fine of up to Rs.500 and
Rs.1000 respectively .
 In case of firms/ companies acting as agent without a license ,every
director /manager/secretary/other officer and every partner who is
knowingly party to such contravention would be punishable with fine
up to RS.5000.
 The license should be valid for 3 years ,and renewable on payment of
the specified fee not exceeding Rs.50 for three years at any time.
Contd….
 A duplicate license would be issued replace a lost, destroyed or
mutilated license on payment of such fee not exceeding Rs.50 as
per IRDA regulations.
 An insurance agent not eligible to be director of any life insurance
company.
Thank You