IRDA License Under Insurance Company Registration

After that,IRDA License Under Insurance Company Registration

The Insurance Regulatory and Development Authority of India (IRDA) is responsible for monitoring and controlling the insurance industry in India. IRDA was established by an Act of Parliament, namely the Insurance Regulatory and Development Authority Act, 1999.

What is IRDA?

IRDA stands for Insurance Regulatory Development Authority. IRDA is an autonomous and statutory body which was establish under the IRDA Act, 1999. It is a company incorporate under Section 25 of the Indian Companies Act, 1956. The IRDA regulates the insurance business in India within the territory of India. It authorizes to carry out insurance business by issuing a license to the applicant under section 12 of the Insurance Act, 1938.

The IRDA is responsible for registration of insurance companies in India and framing rules and guidelines for insurance companies regarding issuance of policies and settlement of insurance claims in India. It ensures that the interests of policyholders are protect by ensuring effective supervision over insurance companies.

For commencing the business of insurance in India, every company must obtain a irda license through the process mentioned below:

Preliminary Requirements:

The following are the preliminary requirements to compile with while applying for a license:

Memorandum of Association must contain the purpose to transact the business of life insurance or general insurance or reinsurance or health insurance or composite insurance. The object may either be include in the original memorandum of association or else it can add through an amendment in the list of objects clause.

The word ‘Insurance’ shall form part of the name of the company except in cases where such companies have already been registered prior to 1st March 2000 and obtained necessary approval from IRDA.

Insurance Company Registration

After that, To operate an insurance company in India, you need an IRDA license. IRDA stands for Insurance Regulatory and Development Authority. This is the regulatory body responsible for all insurance companies in India. The IRDA license is a must-have for every person or organization looking to start any sort of insurance business in India.

The main requirements that insurance companies must meet are the following:

1. For your online business to get an insurance company license, you need to comply with the requirements set by each state. To get an insurance company license in one state, you will need to provide information about your business such as your business entity name and address, names of officers and directors, financial statements, and more.
2. After that, Your application needs to be approve by the state’s Department of Insurance (DOI) or Department of Regulatory Agencies.
3. After that, The process to get approve for a license can take up to 10 weeks from the time you submit your application.
4. You will have to pay a variety of fees including filing fees and surety bond costs.

The documents to be submit for the insurance company license are:-

1. Application in writing with name and address of the company, the proposed business plan, a list of persons proposed to act as directors and managers, summary financial statements showing at least two years’ net worth of the promoters.
2. After that, A copy of the Memorandum and Articles of Association of the Company.
3. A copy of resolutions passed by the board authorizing submission of application for license.
4. Copy of resolution passed by the general body authorizing submission of application license.
5. A copy of certificate issue by Government that no objection is raise to grant approval under Section 42 (1) (a) /(I) or Section 42 (1)(b)/(II).
6. Copy of certificate issue by the Reserve Bank that no objection is raise to grant approval under Section 42 (1)(c)/(III).
7. Copy of certificate issued by Director General, Foreign Trade, Ministry of Commerce & Industry that no objection is raised to grant approval under Section 42 (1) (d)/(IV).
8. After that, Copy/copies of document showing foreign collaboration as approved by RBI and Ministry for Commerce & Industry if any,

Read Also: For The New Things Need Use Best Outsourcing Methods