CHECK-LIST FOR NEW BROKING LICENCE APPLICATIONS

DOCUMENTATION REQUIREMENTS

• Application Form duly completed and declaration duly signed by at least two directors/partners.
• Demand draft against the License Fee.,
• Memorandum of Association and Article of Association of the company (In case of the company) or Partnership Deed in case of partnership firm.
• Audited Balance Sheet of the Company
• Proof of Fixed Deposit with any Scheduled Bank as required by the regulation.
• Detailed Statement of Shareholding pattern of the company, containing the names of the shareholders, number of shares held, share certificate numbers and folio numbers; duly verified and certified by the auditor.
• IT returns for last 3 years of Individual shareholders along-with their net worth certificates and affidavit regarding the source of invested funds.
• Annual reports of the shareholder companies for last 3 years. Board resolution of the shareholder company regarding the investment in the said company.
• Auditors certificate regarding NBFC status of the shareholding company
• If share holding company is an NBFC (Non-banking finance company), then No Objection Certificate from RBI NA
• Detailed CV and attested testimonials including training certificate of the Principal Officer.
• Detailed CV and testimonials of the key managerial persons.
• Details of the persons qualified and trained along-with their testimonials and training certificates.
• List of persons responsible for procuring insurance business alongwith their testimonials.
• Necessary proof of infrastructure, office space, trained manpower etc.
• List of prospective clients with expected premium.
• Business and income projection for next 3 years with class wise break-up.
• Projected Revenue account, profit and loss account and balance sheet for next 3 years.
• Detailed organization chart mentioning roles and responsibilities. (Pg 200)
• Affidavit regarding non-suffering from any disqualification under Section 42 D of the Insurance Act.
• Undertaking regarding non-holding of any Directorship/employment in any other insurance entity by the Director/employees of the company.
• Undertaking regarding non-holding of any agency/surveyor/TPA license by any director/employee
• Undertaking that in the past no person connected to the applicant has been denied license by the authority
• Undertaking by the Principal Officer regarding non-violation of the code of conduct
• Undertaking that the applicant is not engaged in any other business other than the objectives of the applicant as mentioned in MOA/Partnership deed.
• If JV, copy of agreement with partner/s

POINTS TO CHECK

• Whether it has the word ‘Broker/Broking’ in its name.
• MOA contains the insurance broking as its main objective.
• Whether the company fulfills the minimum Capital requirement in the manner provided for in the Regulations.
• It has no foreign capital exceeding 26% of the total paid up capital.
• Whether the Fixed Deposit of 20% of initial capital is made in a scheduled bank.
• The principal officer has the adequate Qualification, passed the Brokers exam and has acquired requisite training.
• The company engages at least two persons with the required qualification and training.
• It has sufficient infrastructure and trained manpower to run the insurance broking business.
• The persons responsible for procuring insurance business are qualified and trained.

A. Submission of Completed Application.

• Submission of relevant information as required in the FORM A.
• The declaration forming part of the application format should be signed by two directors.

B. Documents / Requirements.

• Remittance of requisite fee as per category of insurance broker applied by demand draft payable at Hyderabad, as prescribed under Schedule II of IRDA (Insurance Brokers) Regulations, 2002.
• Printed copy of Memorandum and Articles of Association issued by Registrar of Companies. The main objects of the Memorandum and Articles of Association should be as per regulation 9(2) (H) of the IRDA’s (Insurance Brokers) Regulations, 2002. (It is to be ensured that the main objects in MOA/AOA are strictly confined to insurance broking activity only. Further, the capital clause does not authorize the company to have capital in any other form other than the equity and there shall not be differentiation in voting power.)
• Steps should be undertaken by the applicant to ensure compliance of the training requirements as specified in regulation 9 (2) (F). Training requirement as specified under section 9 (2) (F) of the IRDA (Insurance Brokers) Regulations, 2002 is a requirement to be complied with before any application could be considered for grant of license.
• One Principal Officer has to be there in a broking company fulfilling the requirements as per Regulation 9.
• An undertaking from the applicant (1) that the Principal Officer has not violated the code of conduct as specified under Schedule III of the IRDA (Insurance Brokers) Regulations, 2002 and no complaint is filed against him as on the date. (2) The Principal Officer is appointed exclusively to carryout the functions of an Insurance Broker under Regulation 2 (1) (k) and is neither holding any Directorship / Employment / Assignment in nor represents, either on full time or on part time basis, any other Insurance related or any other entity.
• Information on whether any person associated with the applicant company in his capacity as Directors/shareholder/promoter/key management personnel or employees is holding any insurance agency or insurance surveyor’s license. If yes, the complete details thereof. As per the regulations, no agent or surveyor can work as a broker. The applicant should take steps to cancel the agencies and submit documentary proof of the same to the Authority.
• Detailed CV of all the directors highlighting their past and present activities.
• Detailed CV`s and attested copies of testimonials of the educational qualifications of the principal officer and key management personnel.
• Principal Officer to submit an affidavit, duly notarized certifying to the effect that that the applicant (directors, principal officer, key management personnel and employees of the company) are not suffering from any of the disqualifications specified under sub-section 42 D of the Insurance Act, 1938.
• List of all shareholders (current as well as proposed) of the applicant company.
• Photocopy of the asset register of the firm, duly certified by CA.
• List of employees who will be responsible for soliciting and procuring insurance business along-with their qualifications.
• Details of statutory auditors and Principal Bankers along with the Bank Account Number of applicant.
• If shareholder is firm/firms, confirm whether it/they is/are Non-Banking Finance Companies. If yes, submit a No Objection Certificate from Reserve Bank of India regarding their promoting and investing in Applicant Company. If not, submit a certificate to that effect from the statutory auditors.
• If shareholder is firm/firms, furnish the Board Resolution passed by it/them in promoting and investing in Applicant Company.
• If shareholder is firm/firms, submit the audited annual report, balance sheet for the last three years along with certified copies of income tax returns.
• In case of individual promoters, submit certified copies of income tax returns along with copies of balance sheet filed duly certified by the auditors for the last 3 years along with net worth certificates certified by CA.
• Balance sheet of the applicant company
• Explain in detail the existing activities undertaken by the applicant company.
• Clarification on how the applicant company proposes to deal with its existing customers/ business/liabilities once it enters the field of insurance broking.
• The company must have the words `Insurance Broker` or `Insurance Broking` in its name so as to reflect its line of activity i.e. insurance broking.
• Details of infrastructure along with supporting evidence thereof like ownership/lease agreement papers with regard to office space/ equipment/ trained man power, etc. for the registered office and the future planning for opening branch offices at various locations in the country and the estimated time frame with photographs of premises.
• Projections of administrative expenses, salaries and wages and other expenses, draw the revenue account, the profit and loss account and the balance sheet for the projected 3 years.
• Organization chart giving a complete picture of the company’s activities like IT, underwriting, risk assessment, claims settlement, marketing, accounts, back office etc.
• List of experienced personnel inducted from general and life insurance background with good knowledge and experience of working in the areas of risk assessment, underwriting and claims management etc. Submit detailed CV, copies of educational qualifications along with their appointment/joining letters of the people, so selected, to the Authority.
• The applicant to declare any intervention by any other Regulatory Authority on the Promoters / Management / Applicant Company as on the date.
• Confirmation on compliance with the contents of Circular Ref: 063/IRDA/Memo/07-08 dated 18th March, 2008 ( if applicable)
• Bring on record any other information which is relevant to the nature of services rendered by the applicant for the growth and promotion of insurance business.