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Insurance Marketing Firm License

Help in getting approval from IRDA for new firms/existing firm.
Advisory on workflow and types of services of the new company.
Compilation of all necessary documents for IRDA registration.
Support to register the company under the Companies Act, 2013.
Applying on behalf of the client for Insurance Marketing firm license.
Regular updates regarding compliance norms of IRDA.

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    An Insurance Marketing firm is a new type of distribution and business channel for the Insurance sector in India.  This was introduced by one of the insurance committees in 2007 with an aim to launch a group of companies that can market products related to mutual funds and the insurance sector. The plan also included the sale of pension plans, stocks, and other financial services. 

    Overview of Insurance Marketing Companies

    Insurance Marketing firms conduct their business on similar lines of insurance distribution firms. Any entity willing to operate as an Insurance marketing company must get the insurance marketing firm license and registration. These firms have collaborations with insurance companies for the marketing of their new and existing products. To obtain the insurance Marketing company License a firm must be registered under the Companies Act and apply for a license to the IRDA. 

    Eligibility Criteria for Insurance Marketing Company Registration

    The GOI and IRDA have prescribed certain criteria that must be met by any company willing to register as an Insurance Marketing Firm.

    1. Corporate Structure: A company must be one of the following entities to be eligible for Insurance marketing firm license.

    A company registered under the Company Act 2013.
    A partnership firm registered under the Limited Liability Partnership Act.
    A co-operative society registered under the Co-operative Society Act.

    2. Capital Requirements: The applicant must meet the following requirements to qualify for the license

    The net worth of the promoter/applicant must be equal to or more than Rs. 10 lakhs.
    If the applicant’s area of focus is only a district, then the should be at least Rs. 5 lakhs.
    The applicant must ensure that the net worth is maintained at all times during the functioning of the firm. For this, a certificate by a chartered accountant within 3 months of the closing of the financial year must be submitted.

    3. Principal Officer: there are some conditions specified for the principal officer of an insurance marketing Firm. The principal officer of a firm is the main administrative officer of the company. Here are the criteria for the PO (principal officer of the company) 

    Associate/Fellow member of the Insurance Institute of India, Mumbai; or
    Any post-graduate from the Institute of Insurance and Risk Management, Hyderabad;
    Associate/Fellow member of the Chartered Insurance Institute, London;
    Any graduate with 5 years of work experience in the insurance sector.
    Any graduate with 10 years of work experience in the financial service sector.
    Associate/ Fellow of the Institute of Actuaries of India;
    The officer must meet the training requirements of the IRDA.
    The Po or other administrative officers of the company must not be disqualified under any law of the company.

    4. Foreign Holding: It should not exceed 49% of the paid-up equity share capital or the contribution of insurance Marketing Firm. IRDA will calculate the foreign equity holding of the firm before granting the license. 

    5. Name of the Company: The name must contain the words ‘Insurance Marketing firm’ in it. 

    6. Purpose of the Company: The main objective of the company is insurance marketing and it should be mentioned as such in the MoA and AoA. These activities should concur to the activities prescribed by the authority (IRDA). 

    7. Office/ Facilities: The office or infrastructure of such firm must be capable of successfully conducting the business of insurance marketing. Equipment and manpower should be efficient to take on the challenges of the business. 

    8. Certificate from FSE and ISP: The FSE and ISP or Financial Service Executive and Insurance salesperson must satisfy the required training and qualification required to get the Insurance Brokers License.

    Document Required

    Documents Required For Insurance Marketing Company Registration

    A copy of the Certificate of Registration of the company.
    Copies of Memorandum of Association with Articles of Association of the company.
    For an LLP, a copy of the LLP Agreement certified by a practising C.A.
    Documents supporting the relevant information as furnished in FORM A.
    Remittance of the fee paid through DD and payable at Hyderabad.
    Copies of education and qualification related documents of all the directors, partners, and Principal Officer.
    A duly certified declaration from directors or promoters stating the competency and qualifications of all administrative officers.
    Details of documents supporting the capacity of infrastructure, equipment, office space, and trained manpower. This includes ownership papers of equipment, training certificates of employees, etc.
    Copies of the audited accounts, annual report, and balance sheets of the last 3 financial years.
    Details of IT and physical infrastructure of the company with an organisational chart showing a complete picture of the company’s activities like Claims settlement, IT risk assessment, account, marketing, back office, etc.
    Human Resource Chart showing the roles and responsibilities of each employee.
    Any other relevant document as asked by the authority after review of application and documents.

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      Procedure to Get Insurance Marketing Company License

      An application for grant of Insurance Marketing Firm license and registration needs to be made to IRDA through Form-A.
      A non-refundable fee of Rs. 5000/- with GST should be paid and the DD should be paid to the authority.
      The application should be made with a set of documents prescribed in the FORM-C Schedule I of the IRDA regulations.
      All the documents must be submitted with FORM-A.
      A declaration must be provided by all the directors and POs of the company stating they are FIT and PROPER as per the regulations of IRDA for their respective roles.
      The exam pass certificate must also be filed by the directors and POs.
      The license of all the registered individuals and other authorities must be submitted with the application. This includes licenses by SEBI, IRDAI, RBI, India Post, and PFRDA.
      If the applicant fulfils all the criteria set by IRDA after inspection of the application and all the relevant document, the authority will grant the applicant insurance web aggregator license.
      A Company applying for marketing firm license can also apply for the license in other categories of insurance companies.

      Validity of License

      A license granted by the authority must be renewed after 3 years which is its period of validity. The authority holds the right to suspend a license in case the company fails to comply with the norms of the IRDA Act. 

      MUDS help companies in getting the license easily by giving complete end-to-end support to new companies in getting their Insurance Marketing Firm license and registration.

       

      Alternately Call our Legal Expert Now For Free Consultation at 09599653306

      Frequently Asked Questions on Insurance Marketing Firm License

      Yes, IMF or Insurance marketing firms do require NOC from the Registrar of Companies as it is operating as a company. After this, they can apply for a license from the IRDA.

      The following documents are required to obtain No Objection Certificate for IMF licence:

      • Name of the Proposed Company.
      • Proposed Registered Office’s Address
      • Address of Correspondence.
      • Email.
      • Details and Jurisdiction of RoC; 
      • PAN Detail.

      The Principal Officer is often the presiding officer or key management executive of the Insurance Marketing Firm (IMF). The PO conducts all the activities of the business. The principal officer must have the requisite qualifications and training as required. The PO of the applicant company must complete training from an institute notified as per the authority.

       

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