Insurance Company Registration

We are an action-oriented consultancy firm, who believe in providing 100% assistance to our clients by investing our sustain efforts in completing the insurance company registration immediately. 

To know more about registration of insurance company, contact us.

What is an Insurance Company?

Insurance companies are financial institutions that provide various insurance policies to conserve an individual and establishment against financial risk. 

As a part of Financial Sector Reform, a Committee on Reforms in Insurance (CRIS) came into existence in 1993, headed by Shri R.N. Malhotra. The objective of the CRIS committee was to open an insurance sector, improve the standard services of the Indian insurance majors, and widen the scope of insurance coverage to the more significant section of the Indian population. 

After the commencement of CRIS, the Insurance Regulatory Development Authority came into existence under Insurance Regulatory and Development Authority Act,1999 (IRDAI Act) as a regulatory authority to supervise and develop the Insurance sector.

Moreover, IRDAI Act also protects the interest of insurance policyholders, and its objective is to control, encourage, and ensure proper growth and development of the insurance sector.

To be noted, the Insurance sector has been playing a fundamental role as a component of the economy on account of premiums and scale of investment it collects, including its role in social and economic development by covering personal and business risk.

India comprises 57 insurance companies (24 engaging in life insurance and 33 in non-life insurance).

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Who is Not Eligible For Insurance Company Registration Under IRDA?

When the company’s name does not include “insurance company” or “assurance company” as a suffix.

An application is withdrawn or canceled by the Authority.

If the authority rejects the prerequisite of the application at any point during the previous five financial years on the date of claiming the registration application.

Insurance Company Registration Process

Requisite of Insurance Company Registration Application Under IRDA/R1 Must be Accompanied by

A certified replica of Memorandum of Association (MoA) and Article of Association (AOA), where the candidate or applicant will be the company and incorporated under Companies Act, 1956 (1 of 1956).

Section 6 of the Act should contain statements reflecting sources of contribution in share capital.

A statement concerning the class of insurance.

Should include details of directors and principal officers such as name, address, and occupation.

Insurance Company Registration Process to Fill IRDA/R1 Form

Fill an application by filling the IRDA/R1 form to commence/register a General Insurance/Life Insurance/Health Insurance business.

The authority might ask for clarification or additional information after receiving the application.

At last, the authority is satisfied with the registration application, and you must apply IRDA/R2 form.

Note - The authority rejects your application by giving the reason in writing. Moreover, a resentful applicant can apply to appeal in the Securities Appellate Tribunal within 30 days of receiving the basis for application rejection.

Insurance Company Registration Process to Fill IRDA/R2

Requisite Registration Application Under IRDA/R2 Must be Accompanied by

Under Section 7 of the Act, you are required documentary proof as evidence of deposit needed.

In filling the application form of Life Insurance Business or General Insurance Business, you are required to submit the proof of rupees one hundred crores or above of paid-up equity share capital.

In case of filling the application for grant of certificate for reinsurance business, you are required to submit the proof of rupee two hundred crores or above paid-up equity share capital.

Then, you have to submit an affidavit by the promoters and principal officer certifying the availability of adequate paid-up share capital, excluding preliminary expenses during the formation and registration of the establishment.

A statement needs to be submitted reflecting the varied number of shares and issued to every promoter and shareholder regarding the share capital of the applicant/candidate.

Again, the promoters’ affidavit needs to be submitted, and the principal promoter of the applicant recognizing paid-up capital is calculated according to regulation 11, which should not increase above 26%.

If any, a replica of a certified, published prospectus.

A replica of the certified standard forms of the insurer.

You have to submit the statement of assured rates, advantages, benefits, terms, and conditions to be provided concerning insurance policies along with a certificate by an actuary (in case of insurance establishment ensuring sound and workable rates, benefits, terms, and conditions).

If any, you must submit the certificate of memorandum of understanding between the Indian promoter and foreign promoter.

Receipt showing the payment of the fee of the class of business.

A certificate of practicing the Chartered Accountant/Company Secretary will show that all the requirements connected with registration, share capital, deposits, and other Act provisions are fulfilled.

At last, after proper consideration and meeting the standards mentioned under the Act, you will receive the certificate.

Note - The reason for the rejection of the application will be communicated in writing to you within 30 days of the disclaimer. However, suppose the applicant wants to file a case concerning aggrieved. In that case, he appeals to the Central Government as per Section sub-section (2C) of Section 3 of the Act within 30 days of receiving a reason for rejection.

We - at JR Compliance - an award winning compliance service provider with experience of 8+ years guarantee to make the registration of insurance company unchallenging. Since, registration of insurance company includes number of steps it could be confusing for an applicant to complete everything accurately, especially, if you are doing it for the first time. 

That's why, for the registration of insurance company, you need a professional assistance to complete the registration on your behalf while maintaining the flexibility and adaptability to provide high customer satisfaction.

How to Renew the IRDA Registration of Insurance Company?

An insurer who possesses the certificate under Section 3 of the Act must apply to IRDA/R5 to renew the certificate before 31st December every year.

When filling the application, you must pay Rs 50,000 for each class of insurance business and one-fifth of 1% of the total gross premium written directly by the insurer. During the successive financial year (for the yearly renewal of the certificate is required), or Rs 5 crore, whichever is low.

Note- If the insurer fails to fill an application form to renew the certificate before the date mentioned in sub-regulation (1). Then the authority might accept the application, but you are required to pay an additional fee along with the application fee as a penalty. 

Reasons For Suspension of Certificate

An insurance company conducts its business in a way that is unjust to the interest of the clients.

Does not cooperate regarding the inquiry made by an authority.

Fails to provide the information required by the authorities concerning the insurance business.

Engage in manipulative activities.

Do not submit the periodic return as required by the authority.

Unable to invest in infrastructure or social sector as mentioned under the sub-section (1A) of Section 27D.

Insurance companies engage in unfair trade activities.

Our Role in Insurance Company Registration

We will provide you with assistance in the insurance company registration.

Our insurance company experts will assist you in documentation to avoid inaccuracy as it can be the reason for the rejection of the application.

We will provide you with our assistance in filing a new application and renewal of the certificate. 

In case of rejection of the registration of insurance company application, we will assist you in re-registration by guiding you thoroughly.

We guarantees to provide you with the finest solutions to your concerns regarding registration of insurance company. 

Conclusion

The Insurance Company registration process is discombobulating because it requires filing various forms and documents to obtain a certification or license. That is not just perplexing but a tedious process too.    

However, JR Compliance is the best solution to all your concerns because we guarantee to provide you with our support and assistance from the first to the last step of the registration of insurance company. Thus, we will eliminate every possibility of inaccuracy, which will lessen the rejection of an application.

Hence, for expert and professional services, contact us immediately.

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