Section 23 in Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018
23. Deposit requirements.
(1)Every insurance broker shall before the commencement of their business, deposit and keep deposited with any scheduled bank a sum equivalent to:i. rupees ten lakhs for direct broker.ii. 10% of the minimum capital/ contribution specified under Regulation 19(1) for reinsurance / composite broker in fixed deposit, which shall not be released to them without the prior written permission of the Authority :Provided that the Authority may impose a separate limit of deposit, in any case not exceeding Rupees one hundred lakhs, for a person covered by regulation 2(1)(m)(iv).(2)The deposit shall have a lien with the Authority.(3)Such deposit shall not be pledged for taking any loan or overdraft facility by the insurance broker;(4)Every insurance broker shall furnish to the Authority as and when called upon to do so a non-encumbrance statement from scheduled bank in which such fixed deposit is kept.(5)The interest earned on the deposit shall not be subject to lien with the Authority.
