Insurance License for Companies in India: All You Need to Know

The insurance industry in India is growing fast. With rising awareness about health, life, and financial security, more people are buying insurance. This growth also brings many business opportunities. If your company wants to enter the insurance sector in India, you need to get the proper license first.

This blog explains all the important points about getting an insurance license in India. We will also cover Insurance Broker License Registration, Insurance Company License Registration, and ISNP Registration Online in simple terms.

Why Do You Need an Insurance License?

In India, insurance is a regulated industry. The Insurance Regulatory and Development Authority of India (IRDAI) manages this sector. IRDAI ensures that all insurance activities are safe, transparent, and in the interest of policyholders.

To run any kind of insurance-related business, your company must get the right license from IRDAI. Without a valid license, it is illegal to sell insurance or act as a broker or intermediary.

Types of Insurance Licenses for Companies

There are different types of licenses depending on the kind of work your company wants to do in the insurance sector:

1. Insurance Company License

If your company wants to start its own insurance business (like a life insurance or health insurance company), then you need an Insurance Company License Registration from IRDAI.

2. Insurance Broker License

If your company wants to work as a middleman between customers and insurance companies, then you need an Insurance Broker License Registration.

3. ISNP Registration

If you want to sell insurance policies through your company’s website or app, then you must complete the ISNP Registration Online process.

Insurance Company License Registration

Starting an insurance company is a big responsibility and requires approval from IRDAI. Here is the step-by-step process for Insurance Company License Registration:

Step 1: Choose the Type of Insurance Business

Decide whether your company wants to offer:

• Life Insurance
  
  

• General Insurance
  
  

• Health Insurance
  
  

• Reinsurance
  
  

Step 2: Company Formation

Register your company as a public limited company under the Companies Act, 2013. The company must have a minimum paid-up capital:

• ₹100 crore for Life or General Insurance
  
  

• ₹200 crore for Reinsurance
  
  

Step 3: Apply for R1 License

Submit the R1 application form with all the required documents like business plan, capital structure, and promoter details.

Step 4: Apply for R2 License

After getting the R1 approval, apply for the R2 license. This includes final documents, statutory certifications, and operational setup proof.

Step 5: IRDAI Approval

Once IRDAI reviews and approves your R2 application, you will receive a license to operate your insurance company in India.

Insurance Broker License Registration

If your company wants to act as a broker and help people buy insurance policies from various insurance companies, then Insurance Broker License Registration is required.

Types of Insurance Brokers

• Direct Broker – Deals directly with customers
  
  

• Reinsurance Broker – Deals with reinsurance companies
  
  

• Composite Broker – Works as both direct and reinsurance broker
  
  

Minimum Capital Requirement

• ₹75 lakh for Direct Broker
  
  

• ₹4 crore for Reinsurance Broker
  
  

• ₹5 crore for Composite Broker
  
  

Registration Process

1. Register your company as per Indian company laws.
   
   

2. Apply to IRDAI with Form B – Application for Broker License.
   
   

3. Submit all necessary documents like:
   
   

• Business plan
  
  

• Infrastructure details
  
  

• Capital proof
  
  

• Principal officer’s qualifications
  
  

IRDAI will conduct a background check.

On successful verification, your company will receive the broker license.

ISNP Registration Online (Insurance Self-Network Platform)

In today’s digital world, companies also want to sell insurance through their own websites or mobile apps. For this, IRDAI has introduced ISNP Registration Online.

What is ISNP?

ISNP stands for Insurance Self-Network Platform. It allows companies to set up an online platform to distribute insurance policies digitally.

Who Can Apply for ISNP?

• Insurance Companies
  
  

• Insurance Brokers
  
  

• Corporate Agents
  
  

• Web Aggregators
  
  

ISNP Registration Process

1. Your company must already have a valid insurance license (either as a company or broker).
   
   

2. Apply online on IRDAI’s portal for ISNP Registration.
   
   

3. Submit documents like:
   
   

• Website/app structure
  
  

• IT security audit reports
  
  

• Data protection policy
  
  

• Cybersecurity measures
  
  

IRDAI will verify your digital systems.

If everything is in order, you will get approval to run an ISNP.

Documents Required for Insurance Licenses

The documents may vary based on the license type, but generally, the following are required:

• Certificate of Incorporation
  
  

• Memorandum and Articles of Association (MoA and AoA)
  
  

• Business plan for 5 years
  
  

• Net worth certificate by a Chartered Accountant
  
  

• Principal officer's qualifications and experience
  
  

• Details of infrastructure and office setup
  
  

• Board Resolution for applying license
  
  

• Compliance declaration
  
  

IRDAI Fees and Validity

IRDAI charges a registration fee which differs for each type of license:

• Insurance Company: ₹50 lakh to ₹1 crore
  
  

• Insurance Broker: ₹25,000 to ₹5 lakh (depending on broker type)
  
  

• ISNP Registration: No extra fee if you already have a valid insurance license
  
  

Licenses are generally valid for 3 years and can be renewed upon application.

Why Choose the Right License?

Getting the correct license not only makes your business legal but also:

• Builds trust with customers
  
  

• Helps in partnerships with other financial institutions
  
  

• Gives access to various insurance products and platforms
  
  

• Ensures compliance with government rules
  
  

Conclusion

The insurance market in India is full of potential. Whether you want to open an insurance company, act as a broker, or sell insurance online, your company must first get the right license from IRDAI.

Here’s a quick recap:

• Go for Insurance Company License Registration if you want to start your own insurance company.
  
  

• Go for Insurance Broker License Registration if you want to sell policies from various companies.
  
  

• Complete ISNP Registration Online if you want to sell insurance digitally through your website or app.
  
  

Make sure you follow all IRDAI guidelines and submit the correct documents to avoid delays. Getting an insurance license in India is a detailed process, but with proper planning and help from legal experts, it can be done smoothly.

Need help with your Insurance License Registration?
Our expert team can guide your company through the entire process — from document collection to IRDAI approval. Reach out today to get started!