IRDAI insurance broker capital, net-worth, and deposit requirements
Category-by-category IRDAI capital, continuing net-worth, and fixed-deposit requirements for direct, reinsurance, and composite insurance brokers in India.
IRDAI minimum capital starts at Rs 75 lakh for a direct broker, Rs 4 crore for a reinsurance broker, and Rs 5 crore for a composite broker. Separate continuing net-worth and fixed-deposit requirements also apply throughout registration.
Minimum capital by broker category
The applicant must meet the category-specific paid-up capital or contribution before registration.
- Direct broker: Rs 75 lakh
- Reinsurance broker: Rs 4 crore
- Composite broker: Rs 5 crore
Continuing net-worth requirement
A direct broker must maintain net worth of at least Rs 50 lakh. A reinsurance or composite broker must maintain at least 50% of its applicable minimum capital. The broker must restore any shortfall immediately and submit an auditor-certified net-worth certificate to IRDAI every half-year.
Fixed deposit before commencing business
A direct broker must keep Rs 10 lakh with a scheduled bank. A reinsurance or composite broker must keep 10% of its applicable minimum capital in fixed deposit. The deposit carries an IRDAI lien, cannot secure a loan or overdraft, and cannot be released without prior written permission from the Authority.
Source
IRDAI (Insurance Brokers) Regulations, 2018, amended up to 30 October 2019
Anchors: Regulations 19, 22, and 23