How to get your Insurance Broker License cancelled?

Insurance Broker License is the IRDA-given authority that you can obtain to provide insurance brokerage services. Afterwards, to maintain your business, you have to adhere to a Code of conduct. But that’s not all, the post registration compliances also contain many points.

Simply put, if you get too relaxed for even a single second, IRDA might suspend your license.

But who knows? May be you seek to get your Insurance Broker license cancelled. Or maybe, your love of your business is prompting you to prevent making any mistakes.

This blog is for both of you. Read to know how to get your insurance broker license cancelled.

Mistakes that can lead to license cancellation

Following mistakes can easily make the IRDA take the license away from you:

Violating any provision of Insurance Act, 1938 (that are many),

The IRDA act, 1999 or other rules and regulations that the insurance authority of India introduces on a daily basis. If you don’t keep up with them, you won’t be able to know them, leading to your failure to follow them. As a result, the license cancellation becomes eminent;

Failing the furnish any information related to your insurance activities:

The Insurance Regulatory Development Authority, from time to time, asks you to deliver certain requisite information. If you don’t, the Authority can penalize you

Falsifying information or hiding details from the application

If you’ve given wrong details during Insurance Broker License Process, you must rectify them later. Simply put, you can’t retain your Broker License if it’s on a false pretext.

Not Submitting Periodical Returns

If you don’t provide periodical returns as per the demand of the Insurance regulatory development authority;

Not cooperating with the IRDA

Not Cooperating with when it demands to inspect your premises, attempting to delay the inspection by giving false reasons;

Failing to address the grievances of the policy holders

If you fail to address the issues of your customers or fail to give a satisfactory reply to IRDA, you can lose your license

Violating the rules of IRDA Insurance in India

Issuing rebates or inducing cash or kind to clients or any the client’s organization in ways that contravenes the regulations of insurance authority;

Misconduct During Business Operations

Being guilty of misconduct or if your operation is not as per the code of conduct that IRDA has specified in the Schedule 1- Form H or Schedule 1-Form 1.

Not Being Able to Maintiain your Company’s Financial Health

If you fail to financial sustain your company, IRDA can cancel your license. It means you must not fail to maintain the net-worth, capital and deposit requirements of your insurance broker company.

Not paying the penalties and other fees

If you Fail to pay any fees, penalties or reimbursements that IRDA has imposed on your Brokering Firm, you can lose your license.

Other Reasons are as follows:

Failing to meet the conditions under which you acquired the Insurance Broker license, and
Doing multi-level marketing to either buy or sell insurance policies, and
Operating your business with a principal officer who doesn’t have the requisite training, and
If the authority finds out that the sole purpose of your insurance brokering firm is to divert funds within a group of companies or other associates, you’ll lose your license.

Conclusion

If you commit any of the above 15 mistakes, the IRDA would get a good reason to cancel your Insurance broker license. When that happens it’s only a matter of time for your business to go under. But, if you want to stay afloat and understand all the regulations that must comply with, get in touch with IRDA consultants. They will help you maintain your hold on your insurance broker company.