Section 8(2) in Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018
(2)Without prejudice to the provisions of (1) above, the Authority in particular, shall take into account the following, namely: -(a)Whether the applicant is suffering from any of the disqualifications specified under sub-section (5) of section 42 D of the Act;(b)Whether the applicant has the necessary infrastructure, such as, adequate office space, equipment, trained manpower and IT infrastructure to effectively discharge its activities;(c)Whether the applicant has in their employment a minimum of two broker qualified persons who have the necessary qualifications specified in Schedule I - Form E and experience to conduct the business of insurance broker and in case applicant has certain branch offices, one broker qualified person per branch office having the necessary qualifications specified in Schedule I - Form E of these regulations and experience to conduct the business of insurance broker.Note: In case the insurance broker intends to carry on both life and general insurance business, then at least one broker qualified person each shall have relevant experience in life and general insurance and necessary qualifications specified in Schedule I - Form E of these regulations should be present in the company. In case of exit of a broker qualified person from any of the branches, the charge can be given to another broker qualified person on ad-hoc basis and the insurance broker shall take necessary steps to appoint a broker qualified person at the earliest possible time. However, such arrangements need to be informed to the Authority. If an insurance broker fails to comply with this condition in any of the branch offices under their control, they shall not carry any business in that branch till such a broker qualified person with necessary qualifications as specified in Schedule I - Form E of these regulations is appointed.(d)Whether any person, directly or indirectly connected with the applicant, has, in the past, been refused grant of a certificate of registration or license by the Authority.Explanation: - For the purposes of this sub-clause, the expression "directly or indirectly connected" means a relative in the case of an individual, and in the case of a firm or a company or a body corporate, an associate, a subsidiary, an interconnected undertaking or a group company of the applicant. It is hereby clarified that these terms shall have the same meanings as ascribed to them in the Companies Act, 2013 (18 of 2013) or The Competition Act, 2002, as the case may be.(e)Whether the applicant fulfills the capital requirements as specified in regulation 19; Net Worth requirement as specified in regulation 22 and deposit requirements as specified in regulation 23.(f)Whether the principal officer of the applicant possesses the required qualification, undergone training, passed the examination, possesses the necessary certificate and fulfills other requirements as specified in Schedule I - Form E of these regulations. The information required under Schedule I - Form F of these regulations shall be submitted by Director(s)/ Promoter(s)/ Partner(s)/ Key Management Personnel, in addition to Principal Officer of the applicant.(g)Whether in the opinion of the Authority the Principal Officer of the applicant is suitable to be so appointed keeping in view his experience, preferably in the insurance sector.(h)Whether the Principal Officer/ Director(s)/ Promoter(s)/ Partner(s)/ Key Management Personnel are Fit and Proper based on the statement in Schedule I - Form G of these regulations.(i)Whether the principal officer and/or any other official of the insurance broker has violated the code of conduct as specified in Schedule I - Form H and Schedule I - Form I, as applicable, of these regulations;(j)Whether the applicant is engaged in any other business other than the main objects clause of the MOA/ AOA or its equivalent;(k)Whether the promoters/ investors/ foreign investors/ partners of the applicant are of sound financial position to make investment in the applicant entity.(l)Whether the broker qualified persons fulfill the requirements mentioned in Schedule I - Form E of these regulations and a list of such broker qualified persons shall be provided to the Authority.(m)Whether the Authority has rejected the application for grant of certificate of registration or the applicant has withdrawn the application for any reason at any time during the preceding financial year from the date of application.(n)Whether the foreign investor or Indian Promoter of the existing venture has exited for any reason at any time during the preceding two financial years from the date of application.Provided the Authority, considering the interests of the policyholders and overall growth and development of the insurance sector, may relax the condition of two year waiting to such time as it may so specify.(o)Whether the issue of certificate of registration will be in the interest of policyholders.
