How to become an insurance broker?

There is a major difference between an insurance agent and a broker. The former sells the product of an insurance company to customers and earns commissions. An agent is also the representative of the insurance company. They can complete the insurance transactions and sales. On the other hand, insurance brokers hand over the customer account to the agent or the health insurance companies.

To understand how to become an insurance broker or the best ways to improve your income level, it is important to ensure that you have the best insurance company to back you up.

How to become an insurance broker in India?

Although there are numerous health, life and motorcycle insurance companies that allow you to become their broker yet it is important to be associated with the best one to attain the optimal results.

Here are a few documents required to obtain your broker license -

· Signed application forms

· Copy of memorandum of association of the company

· Declaration forms signed by the directors or partners of the company

· Net worth certificate and an affidavit showing the source of the funds of these shareholders

· Articles of association

· IT returns for the last three financial years of individual shareholders

· Demand drafts against the license fee

· A detailed statement by the auditor - verified and certificates

· Certification regarding shareholding patterns of the company

· Full names of the shareholders, shares allotted and exact share numbers

Steps to becoming a broker

· To become an insurance broker, you need to determine an insurance company. You must also have sufficient capital. However,

· A direct broker acts as an intermediate between an insurance company and a customer.

· Reinsurance broker acts as intermediaries between an insurance company and a reinsurance company

· Composite insurance broker offers services to both the above alternatives

· It is important to incorporate a company to obtain the IRDA license. The options include selecting a cooperative society or LLP since -

· It makes it easy to manage the business

· It provides an accurate infrastructure to support your booking services

· The process of company incorporation is also simple

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