Insurance Broker Licence (IRDAI)
An insurance broker works for the buyer, compares policies across insurers and places the risk, and needs a certificate of registration from IRDAI to do it. Since the July 2026 amendment that certificate no longer lapses every three years; it stays in force while you pay the annual fee and stay compliant.
What it is
An insurance broker is an intermediary that represents the client, not the insurer. It studies the client’s risk, gets quotes from several insurers, advises on cover and helps with claims. That is the main difference from an agent or corporate agent, who sells for tied insurers.
The legal base is Sections 42D and 42E of the Insurance Act, 1938 and the IRDAI (Insurance Brokers) Regulations, 2018. IRDAI amended these through the IRDAI (Insurance Intermediaries) (Amendment) Regulations, 2026, notified on 30 July 2026. Registration is now continuous, subject to an annual fee and ongoing compliance, in place of the old three-year renewal cycle.
Who it applies to
You want to advise clients directly
Firms that place life, general or both kinds of insurance for clients directly with insurers. Think of a Faridabad corporate agent whose factory clients keep asking for quotes from insurers it is not tied to: it is a typical candidate for a direct broker licence (life, general, or both).
You want to place reinsurance
Firms that arrange reinsurance for insurance companies, placing part of an insurer’s risk with reinsurers in India or abroad.
You want to do both
Firms that do both: direct broking for clients and reinsurance broking for insurers, under one registration.
Why it matters
Earn commission lawfully
Section 40 of the Insurance Act lets insurers pay commission only to licensed agents and registered intermediaries. Without registration, no insurer can pay you for business you bring.
Sell across insurers
A broker can compare products of every insurer in its category, which is what business clients pay for.
Build on a stable licence
With continuous registration you no longer face a renewal deadline every three years. What matters now is the annual fee and your compliance record.
Capital, net worth and deposit by category
| Category | Minimum capital (Reg. 19) | Minimum net worth (Reg. 22) | Deposit with a scheduled bank (Reg. 23) |
|---|---|---|---|
| Direct broker (life, general, or both) | ₹75 lakh | ₹50 lakh | ₹10 lakh |
| Reinsurance broker | ₹4 crore | 50% of minimum capital (₹2 crore) | 10% of minimum capital (₹40 lakh) |
| Composite broker | ₹5 crore | 50% of minimum capital (₹2.5 crore) | 10% of minimum capital (₹50 lakh) |
Here is the catch: the deposit must be in place before you start business, and the net worth must be kept up at all times, not just on the day of application. Every broker must also carry professional indemnity insurance throughout the registration (Regulation 24).
Documents required
About the applicant
- Certificate of incorporation, MoA and AoA (or LLP agreement or society bye-laws) with insurance broking as the main object
- Shareholding pattern and details of directors or partners
- Audited financial statements and a CA certificate of net worth
- Proof of paid-up capital
About the people
- Principal Officer’s qualifications, training and exam certificate
- Details of at least two broker qualified persons
- Fit-and-proper declarations of directors and key staff
- KYC of promoters
About the business
- Business plan and organisation chart
- Office and IT infrastructure details
- Undertaking on foreign investment, where foreign investors hold a majority
- Professional indemnity cover (before starting)
How it works
Choose the category and the entity
We match your plans to direct, reinsurance or composite broking and set up the entity. Most brokers use a private limited company; an LLP or co-operative society is also eligible.
Bring in the capital and the team
Capital goes in, and the Principal Officer and two broker qualified persons complete the IRDAI-specified training and exam. In practice, this step takes longest, so we start it alongside incorporation.
Prepare and file the application
We prepare the application in Form B with the Form C documents, the net worth certificate and the people’s credentials, and file it online with IRDAI along with the fee.
Answer IRDAI’s queries
IRDAI examines the application and may ask for more detail or documents. We draft the replies and track each query until it is closed.
Start business and stay compliant
Once registered, you place the deposit, buy professional indemnity cover and begin. We then diarise the annual fee, net worth checks and periodic returns.
Timelines
Pay the annual fee each year
The annual fee is the higher of ₹10,000 or 0.04% of commission and other receipts from insurers in the previous financial year.
Existing brokers: re-register by 31 January 2027
Holders of three-year certificates must apply for the new continuous certificate by 31 January 2027, or by 31 March 2027 with an additional fee of ₹750.
Tag each policy from 1 January 2027
From 1 January 2027, records must show the person who sold each policy, with their name and functional identity in the proposal and policy documents.
What happens if you work without registration
Lose every commission
Insurers cannot pay commission or remuneration to an unregistered entity under Section 40. In practice, no insurer will accept business from you.
Face IRDAI action
IRDAI can suspend or cancel a certificate, and impose penalties under the Insurance Act, 1938, for breaches such as falling below the required net worth.
Start over if you miss the transition
An existing broker who misses the 31 March 2027 cut-off must stop business and apply afresh under the current regulations.
Frequently asked questions
What is the minimum capital for an insurance broker licence?
A direct broker needs minimum capital of ₹75 lakh under Regulation 19 of the IRDAI (Insurance Brokers) Regulations, 2018. A reinsurance broker needs ₹4 crore and a composite broker ₹5 crore. The capital must be paid up when you apply. If your company was set up with a smaller authorised capital, we increase it first, so the paid-up amount meets the rule on filing day.
What net worth must a broker keep?
A direct broker must keep a net worth of at least ₹50 lakh at all times under Regulation 22. Reinsurance and composite brokers must keep at least 50% of their minimum capital, which works out to ₹2 crore and ₹2.5 crore. Losses in the early years can erode it, so we review net worth with your accounts every year and flag any shortfall early.
Is the broker licence still valid for only three years?
No. The IRDAI (Insurance Intermediaries) (Amendment) Regulations, 2026, notified on 30 July 2026, replaced the three-year renewal with continuous registration. The certificate stays in force while you pay the annual fee and comply with the regulations. Existing brokers must apply for the new certificate by 31 January 2027. We can handle that conversion for you.
How is the annual fee worked out?
The annual fee is the higher of ₹10,000 or 0.04% of the commission and other receipts you earned from insurers in the previous financial year. A broker with ₹50 crore of such receipts, for example, pays ₹2 lakh. It comes from your audited books, so we compute it at year-end closing and keep the working on file.
Can an LLP become an insurance broker?
Yes. The Insurance Brokers Regulations, 2018 allow a company, a co-operative society, a limited liability partnership or any other person recognised by IRDAI to apply. Most applicants still choose a private limited company, as raising capital and bringing in investors is easier. We weigh both options against your funding plans before you incorporate.
Who is a Principal Officer and a broker qualified person?
The Principal Officer is the person in charge of the broking business, who must hold the qualifications and complete the training and exam IRDAI specifies. Regulation 8 also needs at least two broker qualified persons, plus one at each branch. We check every candidate’s eligibility early so that a training gap does not hold up your filing.
What deposit does a broker keep with a bank?
A direct broker keeps ₹10 lakh in a deposit with a scheduled bank under Regulation 23. Reinsurance and composite brokers keep 10% of their minimum capital, that is ₹40 lakh or ₹50 lakh. The deposit must be made before the broker starts business and is held with the bank. We help you set it up and document it for IRDAI.
How is a broker different from a corporate agent?
A broker represents the client and can place business with any insurer in its category, while a corporate agent sells for a limited set of insurers it is tied to. Brokers need more capital, a bank deposit and professional indemnity cover. For advisory work on corporate risks, the broker route usually fits better. We can walk you through both before you decide.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Government fees: the IRDAI application and registration fees under the Insurance Brokers Regulations, and from then on an annual fee of the higher of ₹10,000 or 0.04% of commission and other receipts from insurers. Plan separately for the minimum capital and the bank deposit, which stay with the business.
Ready to begin?
Tell us the category you have in mind and your capital plan, and we will map the entity, team and IRDAI filing for your broking licence.