IRDA LICENSE
                     




IRDA LICENSE
What is IRDA License? 
Until the year The The sector of 
1999, the insurance as 
insurance Controller of most of the 
sector in India Insurance earlier 
was controlled under the provisions 
by Insurance were outdated 
Act, 1938 and irrelevant 
in the present 
context.
Scope of 
IRDA  The procedure of 
obtaining license of 
insurance from IRDA
 The procedure of 
The new IRDA obtaining approval of 
regulations covered the insurance products from 
IRDA; and
following points of 
importance in the field  The procedure for 
of insurance: appointment of insurance 
intermediary
Application for First Stage
Registration 
Certificate before 
IRDA
The application shall be supported by the following 
documents:
• The certified copy of the Memorandum of Association and Articles of 
Association;
• The full profile including the name, address and occupation of all the directors 
and shareholders of the company;
• The statement regarding the class of insurance business proposed to be carried 
on.
• The statement regarding the sources of capital funds.

Second 
Stage
Every entity shall deposit either in cash or in 
securities , partly in cash and party in securities, the 
following:
 1% of the total gross premium written in India in the previous year, in case of the 
life insurance business, not exceeding INR 10 crore;
 3% of the total gross premium written in India in the previous year, in case of the 
general insurance business, not exceeding INR 10 crore;
 A sum of INR 20 crores in case of reinsurance business;
 A sum of INR 1 lac/- only in case of marine business;
The certificate showing the amount deposited with the 
Reserve Bank of India.
The statement showing declaration from the Principal 
Officer about fulfillment of Minimum Capital Requirement. 
The capital requirement shall be 20 crores for reinsurance 
business and 10 crores for the life insurance and General 
Insurance.
A copy of the certified public prospectus and the policy 
reforms of the insurer.
Statement depicting assured rate, advantages, terms & 
conditions associated with Insurance policies.
Actuary certificate regarding rate of interest.
A deposit of INR 50,000/- for each class of business.
If any foreign promoter is involved, then the certified copy 
of the MOU between the Indian and Foreign promoter.
Any other document asked for by the authority.
Grant of Registration 
Certificate for Insurance 
business in India
After the receipt of application and on being satisfied about the 
following mentioned conditions, the Certificate of Registration shall be 
granted to the insurer by the IRDA. The conditions include the 
following:
Adequate 
Fulfilment Sound volume, 
financial 
of the capital condition 
interest of structure and 
the and earning general 
general prospects character of the 
public. of the applicant 
managem
company;
ent;
Refusal of Registration for 
insurance operations
The applicant may be refused of the registration of an insurer on the following grounds:
• Inadequate or improper information;
• Delay in providing information;
• Non-fulfilment of capital requirements;
• Improper conduct of the management;
• Any other as decided by the Authority.
If the applicant is refused of the registration as an insurer, he can appeal 
before the Central Govt. within 30 days from the date on which a copy of the 
decision from the Authority is received
In case of the insurance registration, the decision of the government shall be 
final and cannot be appealed against in any court of law.

Cancellation of 
Registration
In case any of the 
conditions specified 
for registration is not 
compiled with, then 
the Authority reserves 
the right to cancel the 
registration either 
wholly or in part, in 
case the applicant is 
involved in more than 
one insurance 
business.
RENEWAL OF REGISTRATION
The registration for insurance shall be renewed every year and the application for 
renewal shall be made before 31st December of the preceding year following which 
the renewal is sought for, along with the fees as below:
• 1/4th of the 1% of the premium received during the year or INR 5 crores, whichever is 
less;
• The fees should not be less than 50,000/- for each class of insurance;
• 1/4th of the 1% of the premium received during the year in India, for reinsurance 
companies;
• The renewal fees shall be paid to the Reserve Bank of India.