Requirements and Eligibility for Corporate Agent Registration for Insurance Company

A Corporate Agent is defined as any entity or person holding a valid certificate of registration issued by the Authority IRDA, enabling them to solicit and service insurance business for specific categories like life, general, and health insurance.

Entities eligible to become Corporate Agents include:

• Companies formed under the Companies Act, 2013, or any previous company law.

• Limited liability partnerships are registered under the Limited Liability Partnership Act, of 2008.

• Co-operative Societies registered under the Co-operative Societies Act, 1912, or any relevant law.

• Banking companies as defined in the Act.

• Corresponding new banks under the Banking Companies Act, of 1949.

• Regional rural banks were established under the Regional Rural Banks Act, 1976.

• Non-governmental organizations or micro-lending finance organizations covered under the Co-operative Societies Act, 1912, or Non-Banking Financial Companies registered with the Reserve Bank of India.

• Any other entity recognized by the Authority as suitable to act as a Corporate Agent.

Process for Registration via Corporate Agency Portal:

1. Online Submission of Request for Login Credentials

2. Upload of Documents Required for Login Credentials:

   • Certificate of Incorporation

   • Net worth Certificate

   • Memorandum of Association

   • Audited Financial Statements for the last two years

3. Login to the portal with the provided credentials.

4. Upload of Checklist for corporate agency along with required documents to obtain Certificate of Registration (after approval by the Authority and payment of requisite fee), including:

   • Profile of the Company

   • Form A

   • Certificate of Registration

   • Organization Chart (with the position of Principal Officer specified)

   • Latest Net Worth Certificate

   • Memorandum and Articles of Association

   • Training, Examination, and educational documents of the Principal Officer

   • Fit and proper criteria undertaking of all Directors and Principal Officer

   • Board Approved Policy

   • Code of conduct undertaking

   • In-principal agreements with insurers

   • Documents supporting infrastructure

   • Business Plan and strategy for insurance business procurement

   • Declarations on FDI, Appointment of Principal Officer, and regulatory registrations

   • Projected P&L and Balance Sheet for the next three years and Audited Financial Statements for the last three years.

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Post-Registration Activities on the Portal:

• Submission of Principal Officer (PO) checklist for PO license

• Downloading CA COR and PO License from Portal

• Submission of SP checklists for SP license and download of SP Certificates

• Uploading Tie-up agreements entered with insurers

• Submission of half-yearly and Annual returns on the portal

Fee Structure:

• CA – Application Processing Fee: Rs. 10,000

• CA – Registration Fee: Rs. 25,000/-

• PO – Certificate: Rs. 500/-

• SP – Certificate: Rs. 500/-

These structured requirements and processes ensure clarity and compliance in the registration of Corporate Agents within the insurance sector.

Minimum Capital and Net Worth Requirements

Corporate Agents exclusively engaged in insurance intermediation must maintain a minimum share capital or contribution of Rupees Fifty Lakh. Moreover, they are required to always uphold or maintain a net worth of Rupees Fifty Lakh.

Tie-Up Arrangements

Corporate Agents specializing in Life, General, or Health insurance are permitted to establish tie-ups with a maximum of three insurers in their respective lines of business. Composite Corporate Agents have the flexibility to form tie-ups with three insurers each in the Life, General, and Health insurance segments.

Disclosure Requirements

Within 30 days of entering tie-up arrangements with insurers, Corporate Agents must disclose these arrangements to the IRDA Authority. Moreover, they are mandated to maintain these agreements for a minimum period of one year.

Maintenance of Registers

Corporate Agents are obligated to maintain several registers as per Regulation 30:

• Register of Client Details: Contains comprehensive information regarding clients, including their names, contact addresses, policy details, premium amounts, etc.

• Register of Complaints: Documents details of complaints received, encompassing complainant names, nature of complaints, actions taken, etc.

• Register of Specified Persons / Authorized Verifiers: Records particulars of individuals associated with the agency, including their names, addresses, contact information, employment details, etc.

These regulations are designed to promote transparency, financial stability, and efficient service delivery within the insurance intermediary sector, ensuring compliance is essential for Corporate Agents to operate legally and effectively within the industry.