An IRDAI licence is the Certificate of Registration the Insurance Regulatory and Development Authority of India grants under the Insurance Act, 1938 to entities that want to sell or advise on insurance as an intermediary. For businesses, the two most common routes are the insurance broker licence (direct, reinsurance or composite) and the corporate agent registration. If you plan to distribute policies of insurers as a company, bank tie-up, NBFC, fintech or large retailer, you need one of them before you solicit a single policy.
What is an IRDAI licence and how does it work?
Insurance in India is distributed through several intermediary types: individual agents, corporate agents, insurance brokers, insurance marketing firms, web aggregators and point-of-sale persons. Only some of these are registered entities that hold a Certificate of Registration (CoR) from IRDAI. Under section 42D of the Insurance Act, 1938, IRDAI registers corporate agents and brokers, and the regulations made under the Act lay down who can apply, what capital they must hold, who must run the business and what conduct is expected afterwards.
The difference between the two main routes matters. A corporate agent represents insurers: it is tied to a limited number of insurers (the 2015 regulations allow up to nine life, nine general and nine health insurers, with a composite ceiling of 27) and is paid commission by them. A broker represents the customer: it can place business with any insurer, recommends products on the client's behalf and must hold a deposit and a higher capital base. Brokers come in direct (life, general or both), reinsurance and composite flavours.
A major change arrived on 30 July 2026, when IRDAI notified the Insurance Regulatory and Development Authority of India (Insurance Intermediaries) (Amendment) Regulations, 2026. The old model of a three-year certificate that had to be renewed has been replaced by continuous registration: once issued, the certificate stays valid on payment of a non-refundable annual fee, and IRDAI can attach conditions to it. Existing holders of three-year certificates must apply for a fresh certificate by 31 January 2027, or by 31 March 2027 with reasons and an additional fee of Rs 750.
Alongside this, IRDAI has tightened accountability. From 1 January 2027, proposal forms, policy documents and certificates must show the name and role of the person who sold the policy, along with the contact details of the selling branch (or, for online sales without a salesperson, the Principal Officer). The Specified Person certificate for corporate agents has been replaced by a letter of enrolment, and training of 25 hours every three years applies to certain key persons.
Who needs an IRDAI licence?
You need IRDAI registration if insurance distribution is a business you carry on as an entity, not just an occasional referral. Typical applicants include:
- Companies that want to become direct insurance brokers and advise businesses or individuals across several insurers
- Reinsurance or composite brokers placing risks with Indian insurers and reinsurers
- Banks, NBFCs, small finance banks and payment companies that sell insurance to their customer base as corporate agents
- Fintech, travel, automobile, telecom and retail companies that bundle insurance into their customer journey
- Existing corporate agents who must now obtain a fresh certificate under the continuous-registration regime
- Brokers converting from a firm or LLP structure into a company to meet capital and ownership norms
Benefits of IRDAI Licence (Insurance Broker & Corporate Agent)
Lawful right to solicit and place insurance
Soliciting or placing insurance without registration is a regulatory breach. A CoR gives you a clean legal footing to deal with insurers, to receive commission or brokerage and to be recognised by corporate customers and tender portals.
Access to insurer panels
Insurers will onboard you only after verifying your CoR, Principal Officer qualification and compliance record. A valid registration is the entry ticket to agency codes, rate cards and claims support.
Customer advisory credibility
For brokers, the licence is what allows you to represent the client rather than the insurer. Large enterprises usually insist on dealing with an IRDAI-registered broker for group cover, liability programmes and reinsurance.
Continuous registration after 2026
Under the amended framework you no longer plan around a three-year renewal cycle. If you pay the annual fee and follow the regulations, the registration continues, which simplifies long-term planning.
Scalable distribution
With enrolled salespersons, branches and digital journeys, a registered entity can scale distribution in a regulated manner and demonstrate who sold what, which protects you in mis-selling disputes.
Eligibility & applicability
The eligibility test differs by category. These are the checkpoints we run before filing, based on the 2018 broker regulations and 2015 corporate agent regulations as amended:
- Capital for brokers: minimum paid-up capital of Rs 75 lakh for a direct broker, Rs 4 crore for a reinsurance broker and Rs 5 crore for a composite broker, with a net worth floor to be maintained after registration (Rs 50 lakh for a direct broker).
- Deposit for brokers: a fixed deposit with a scheduled bank held under lien in favour of IRDAI (Rs 10 lakh for a direct broker; 10 percent of minimum capital for reinsurance and composite brokers).
- Ownership limits for brokers: no single investor may hold more than 25 percent of paid-up equity, and the combined holding of investors (other than foreign investors) is capped, so the cap table must be designed with this in mind.
- Corporate agents: an entity doing only insurance distribution must keep equity capital and net worth of at least Rs 50 lakh; an entity with other businesses has no minimum capital requirement under the 2015 regulations.
- Principal Officer and qualified persons: the Principal Officer (and, for brokers, broker qualified persons) must hold the prescribed qualification and training; certain key persons must complete 25 hours of training every three years under the 2026 amendment.
- Professional indemnity insurance (PII): corporate agents earning more than half of their revenue from insurance intermediation must hold PII, and brokers carry PII as the broker regulations require.
- Foreign-owned intermediaries: majority foreign-owned corporate agents must give the Schedule AA undertaking (Indian company, resident Indian Chairman/CEO/PO/MD, and induction of skills) and meet extra disclosure norms.
Documents required
Entity and ownership documents
- Certificate of incorporation, MOA and AOA (objects clause must permit insurance broking or corporate agency)
- PAN, GST registration and proof of registered office
- Shareholding pattern with KYC of every shareholder and ultimate beneficial owner
- Board resolution authorising the application and the signatory
Financial documents
- Bank certificate or statements showing paid-up capital in the company's account
- Chartered accountant certificate of net worth
- Fixed deposit receipt under IRDAI lien (brokers)
- Projected financials and business plan for the first three years
People and compliance documents
- Principal Officer details, qualification, training certificate and experience
- Directors' details, declarations and fit-and-proper confirmations
- Details of broker qualified persons or enrolled salespersons and their training status
- Professional indemnity policy or proof of arrangement, where applicable
- Infrastructure details: office premises, IT systems, grievance redressal and record-keeping set-up
Insurer tie-up documents (corporate agents)
- Draft or executed agency agreements with the insurers you intend to tie up with
- Declaration of insurers' count within the permitted limits
- Undertaking on compliance with IRDAI code of conduct for intermediaries
Step-by-step process to get an IRDAI licence
The sequence below reflects how a fresh application normally runs. A company that already exists can compress the first two steps.
Decide the category
Choose between direct broker (life, general or both), reinsurance broker, composite broker or corporate agent based on who you want to serve and how much capital you can commit. This decision drives your capital, deposit, shareholding and governance design, so we usually model all options on one page first.
Incorporate and name the entity
Set up a company with an objects clause covering insurance broking or corporate agency. If you want the words 'Insurance Broker' in the name, IRDAI issues a name no-objection certificate, valid for six months, so incorporate within that window.
Build capital and net worth
Receive the paid-up capital through banking channels and keep a clean audit trail. For brokers, place the required fixed deposit with a scheduled bank under lien to IRDAI. A shortfall at filing is a very common reason for queries.
Qualify the Principal Officer and key persons
The Principal Officer and other specified persons must complete prescribed training and pass the examination through an IRDAI-recognised institute. Do this early, because certificates are asked for with the application.
Prepare the application and policies
Prepare the application form, business plan, shareholding chart, declarations and internal policies on grievance handling, record keeping, conflict of interest and POS tagging. The 2026 amendments make sales-traceability systems part of what IRDAI expects to see.
File online and pay the application fee
Submit the application on IRDAI's online system with documents and fee. Under the amended corporate agent framework, a non-refundable application fee of Rs 10,000 applies; broker fees should be checked against the current schedule at the time of filing.
Respond to IRDAI queries and inspection
IRDAI may ask for clarifications on capital source, shareholders, business plan or office. Answer in one consolidated reply with supporting documents; scattered partial replies slow the file.
Receive CoR and pay the annual fee
On approval, IRDAI issues the Certificate of Registration and the first annual fee falls due within the period stated in the regulations. Missing it can lead to suspension, so calendar it before you celebrate.
Government fees and capital
Fees in this area are in transition. The figures below are those documented under the earlier regime together with what has been reported for the 2026 amendment. Always confirm the live fee schedule on IRDAI's website before payment.
| Item | Amount | Note |
|---|---|---|
| Broker application fee (earlier schedule) | Rs 25,000 direct / Rs 50,000 reinsurance / Rs 75,000 composite | As documented under the 2018 regulations; confirm against the current Schedule |
| Broker 3-year renewal fee (earlier schedule) | Rs 1,00,000 / Rs 3,00,000 / Rs 5,00,000 | Replaced by annual fee under the 2026 amendment for fresh and transitioning registrations |
| Corporate agent application fee | Rs 10,000 | Non-refundable under the amended regulations |
| Corporate agent annual fee (2026 amendment) | Higher of Rs 10,000 or 0.04% of commission and other receipts from insurers in the previous financial year | Reported for corporate agents; first annual fee due within 15 days of grant per consultation draft |
| Late application for fresh certificate during transition | Applicable fee plus Rs 750 | Late window runs to 31 March 2027 with reasons for delay |
| Earlier corporate agent fees (for reference) | Rs 10,000 application, Rs 25,000 on grant and Rs 25,000 renewal | Three-year certificate regime now being phased out |
Professional charges are quoted separately after reviewing your case. Government fees are paid directly to the authority.
How long does it take?
IRDAI does not promise a fixed turnaround, and the clock depends mostly on how complete your capital, shareholding and Principal Officer documents are. Most delays come from capital that is not yet in the bank, deposits not placed under lien, or queries on shareholder source of funds. Treat the timelines below as practitioner planning ranges rather than statutory periods.
| Stage | Typical time |
|---|---|
| Category selection, incorporation and capital infusion | 2–6 weeks, depending on your funding |
| Principal Officer training and examination | Several weeks, depending on batch schedules |
| Application drafting and filing | 1–3 weeks |
| IRDAI scrutiny, queries and decision | Variable; commonly a few months |
Validity & renewal
Until the 2026 amendment, a certificate of registration was valid for three years and renewal could be filed up to 90 days before expiry. The July 2026 amendment replaces that with continuous registration: the certificate stays valid on payment of a non-refundable annual fee, until it is suspended, cancelled or surrendered. Holders of existing three-year certificates must apply for a fresh certificate by 31 January 2027, with a late window up to 31 March 2027 on payment of an additional Rs 750 and reasons for the delay. Entities that miss the extended date must stop acting as intermediaries and seek fresh registration, so this deadline deserves a diary entry now.
Compliance after you get the licence
- Pay the annual fee on time; non-payment can lead to suspension and a surcharge on late payment
- Maintain the minimum capital, net worth and (for brokers) the fixed deposit at all times
- Keep policy-wise sales records identifying the salesperson, and from 1 January 2027 print the seller's name and role on proposal forms, policies and certificates
- Ensure the Principal Officer and enrolled persons complete required training; transfer of designated persons between intermediaries needs an NOC
- Hold professional indemnity insurance where the regulations require it
- File periodic returns, audited financials and disclosures that IRDAI prescribes, including enhanced disclosures for majority foreign-owned entities or high-commission entities
- Operate a grievance redressal process and follow IRDAI's code of conduct and mis-selling norms
- Seek IRDAI approval or give intimation for change in shareholding, directors, Principal Officer or registered office as the regulations require
Insurance broker vs corporate agent
| Feature | Direct insurance broker | Corporate agent |
|---|---|---|
| Whom it represents | The customer | The insurers it is tied to |
| Governing regulations | IRDAI (Insurance Brokers) Regulations, 2018 | IRDAI (Registration of Corporate Agents) Regulations, 2015 |
| Minimum capital | Rs 75 lakh paid-up (direct broker) | Rs 50 lakh if only insurance distribution; none if other businesses |
| Deposit | Rs 10 lakh fixed deposit under lien (direct broker) | Not applicable |
| Insurer tie-ups | Can place business with any insurer | Up to 9 life, 9 general and 9 health insurers; composite ceiling of 27 |
| Registration validity | Continuous on annual fee after 2026 amendment | Continuous on annual fee after 2026 amendment |
| Typical applicants | Independent advisory firms | Banks, NBFCs, fintechs, retailers |
Common mistakes & rejection reasons
Starting before capital is in place
Applicants apply first and arrange funds later. IRDAI looks for the paid-up capital and deposit evidence upfront, and an application that cannot show them is returned or delayed.
Shareholding that breaches the cap
A promoter group holding more than the permitted share, or a layered structure that hides the real owner, triggers repeated queries. Fix the cap table before incorporation.
Choosing broker when agency would do
Many businesses want a broker licence because it sounds bigger, then discover the capital, deposit and fiduciary duties it brings. If you only intend to sell through a few insurers, corporate agency may fit better.
Ignoring the transition deadline
Existing three-year certificate holders who do not apply for a fresh certificate by 31 January 2027 (or 31 March 2027 with the late fee) lose the right to operate and must start again.
Weak Principal Officer profile
A Principal Officer without the prescribed qualification, training certificate or real involvement in the business is a common ground for queries.
No traceability systems
With seller tagging due from 1 January 2027, applicants who cannot show how sales will be tied to individuals face closer scrutiny.
Penalties for non-compliance
Acting as an intermediary without registration, or breaching registration conditions, can attract penalties under the Insurance Act, 1938 and the regulations, including suspension or cancellation of the certificate and monetary penalties imposed by IRDAI. The Insurance Act contains penalty provisions for contravention by intermediaries, and IRDAI can also add business conditions or limits to a certificate. We have not reproduced section-wise penalty amounts here because they changed through recent amendments and should be read from the current text of the Act and regulations for your specific default.
Practitioner tips
- Build the shareholding chart before you incorporate. In our experience, queries on who ultimately owns the broker are the longest-running ones and are avoided by a clear, document-backed chart.
- Decide whether you want brokerage income or agency commission in the first year. Brokers can place business across insurers but also carry duty of advice, deposit and higher capital; agents are lighter but are limited to the insurers they tie up with.
- Put the 31 January 2027 and 31 March 2027 dates in your compliance calendar if you already hold a three-year certificate. Combine the fresh-certificate application with a review of your Principal Officer's training and PII status.
- Design your sales system now for seller tagging. Capturing which enrolled person or branch sold which policy at proposal stage is far cheaper than retrofitting it later.
- Keep bank evidence of capital contribution in a single folder with the board resolutions and allotment records, as IRDAI queries often ask for exactly these three items together.
How Lawgical Guru helps with your IRDAI licence
Category and capital planning
We compare broker and corporate agent routes for your business model, and map capital, net worth, deposit and shareholding requirements before you commit funds.
Entity set-up
We help incorporate the company with the right objects clause and, for brokers, handle the name approval steps. Related set-up work includes private limited company registration.
Application drafting and filing
We prepare the application, business plan, declarations and policy documents, assemble the annexures and file on IRDAI's online system.
Query replies
We draft consolidated replies to IRDAI queries on capital, shareholders, Principal Officer and infrastructure.
Transition and annual compliance
For existing holders we plan the fresh-certificate application under the 2026 amendment, and set up calendars for annual fees, disclosures and training.
Supporting registrations
We also assist with the surrounding registrations your entity needs, such as GST registration and digital signature certificates for directors and signatories.
IRDAI Licence (Insurance Broker & Corporate Agent): frequently asked questions
What is an IRDAI licence?
It is the Certificate of Registration issued by the Insurance Regulatory and Development Authority of India to entities that act as insurance intermediaries, such as brokers and corporate agents. It is granted under section 42D of the Insurance Act, 1938 and the relevant regulations. Without it, a company cannot lawfully solicit or place insurance business for commission or brokerage.
How much capital is needed for an insurance broker licence?
Under the IRDAI (Insurance Brokers) Regulations, 2018, a direct broker needs minimum paid-up capital of Rs 75 lakh, a reinsurance broker Rs 4 crore and a composite broker Rs 5 crore. A direct broker must also maintain a net worth floor and keep Rs 10 lakh as a fixed deposit with a scheduled bank under IRDAI's lien.
What is the difference between an insurance broker and a corporate agent?
A broker represents the customer and can place business with any insurer, whereas a corporate agent represents the insurers it is tied to. Corporate agents can tie up with up to nine life, nine general and nine health insurers. Brokers carry higher capital, deposit and advisory duties, while corporate agents suit banks and businesses that distribute through a few partners.
Did IRDAI change licence validity in 2026?
Yes. Under the Insurance Intermediaries (Amendment) Regulations, 2026 notified on 30 July 2026, the three-year fixed-term certificate is replaced by continuous registration, which stays valid on payment of a non-refundable annual fee until suspended, cancelled or surrendered. Existing three-year certificate holders must apply for a fresh certificate by 31 January 2027.
What is the annual fee under the new framework?
For corporate agents, the reported formula is the higher of Rs 10,000 or 0.04 percent of commission and other receipts from insurers in the previous financial year. Broker annual fees are set in the schedules to the broker regulations, so confirm the exact amount for your category on IRDAI's website before paying.
What happens if I miss the 31 January 2027 deadline?
You can still apply until 31 March 2027, but you must give reasons for the delay and pay an additional fee of Rs 750. If you miss that extended date as well, you must stop acting as an intermediary and apply afresh for registration, which can interrupt insurer tie-ups and commission.
Who is a Principal Officer and why does the role matter?
The Principal Officer is the person responsible for the intermediary's compliance and dealings with IRDAI. IRDAI expects the Principal Officer to hold the prescribed qualification and training, and the 2026 amendment adds 25 hours of training every three years for certain key persons. Weak profiles are a common source of queries.
Do I need professional indemnity insurance?
Corporate agents whose insurance intermediation revenue exceeds half of total revenue need professional indemnity insurance, and the 2026 amendment requires it from the start for such entities. Brokers also hold professional indemnity cover as the broker regulations require. Choose limits that satisfy the regulations and your insurer partners.
Can a foreign-owned company become a corporate agent or broker?
Foreign ownership is permitted within the limits of insurance law, but majority foreign-owned intermediaries face extra conditions. For corporate agents, the Schedule AA undertaking requires an Indian company with a resident Indian Chairman, CEO, Principal Officer or Managing Director, plus extra disclosures. Foreign investment limits in the sector should be checked at filing.
What must policy documents show from 1 January 2027?
From 1 January 2027, proposal forms, policy documents and certificates must state the name and role of the person who sold or solicited the policy, along with the contact details of the selling branch or office. For online sales without a salesperson, the Principal Officer's contact details are shown instead.
Reviewed by Satyam Gupta, Company Secretary (CS) & Advocate
8+ years of industry experience. This page was last reviewed on 16 October 2026 against the official sources below. Rules and fees change — confirm on the official portal before you apply.
Official sources
- TeamLease RegTech – IRDAI (Insurance Intermediaries) (Amendment) Regulations, 2026 (notification IRDAI/Reg/8/222/2026)
- Business Standard – IRDAI tightens intermediary rules (31 July 2026)
- IRDAI gazette excerpt – amendments to Corporate Agent Regulations, 2015 (via Taxguru)
- Policyholder.gov.in – Insurance brokers (categories, capital)
- Vinod Kothari – Proposed reforms in Corporate Agent Regulations (June 2026)