How to start an insurance company in India

Insurance company under IRDA

Insurance companies in India are regulated by IRDA (Insurance Regulatory and Development Authority). The objective of IRDA is to protect the interest of consumers and ensure a fair market for insurers. Recently, IRDA has made it mandatory for all insurance companies to publish their online statement of financials. This allows customers to check how much each insurer has earned/lost in a particular year. In addition, it lets them see how much commission each agent of the company has earned in a year.

IRDA Insurance Registration & License

The IRDA Insurance Registration & License is a mandatory document that certifies the registration of an insurance company or intermediary in India. It is issued by the Insurance Regulatory and Development Authority of India (IRDAI) under the provisions of the IRDA Act.

Documentation Required For Registration Certificate Before IRDA

The Certificate of Registration should be made to the IRDA in the Form prescribed under IRDA/R1. 

The following documents should be submitted to the application:

  • Copy of the Memorandum of Association and Articles of Association;

  • Details include the name, address, and occupation of all of the company's directors and shareholders.

  • The statement describes the type of insurance business that will be conducted.

  • The statement about the sources of capital funds..

  • Proof of business address

  • Identity proof of directors, partners, and shareholders including their biodata


  • Every entity must deposit the following, either in cash or in securities, or partially in cash and partly insecurities:

  • In the previous year, 3 percent of total gross premium written in India, not exceeding INR 10 crore in the case of general insurance business;

  • In the case of reinsurance, a sum of INR 20 crores;

  • In the case of marine business, a sum of INR 1 lac/- is required.

  • the certificate that shows the amount deposited to the Reserve Bank of India.

The IRDA will issue the insurance Certificate of Registration if the following conditions are met. The following are the conditions:

  • Good financial condition and overall management character;

  • The applicant company's sufficient volume, capital structure, and profits projections;

  • Fulfillment of the general public's interest

Insurance agent license validity

The insurance License is valid for a period of three years.



You may be aware that insurance companies can only be set up by the IRDA (Insurance Regulatory and Development Authority of India) which is a statutory body set up under the insurance regulatory and development act of 1999.


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