Section 32 in Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018
32. Co-broking.
(1)Two or more registered insurance brokers can jointly handle the broking of insurance requirements of any client with the written consent of the client.(2)It is open to a client to appoint in writing more than one insurance broker to jointly handle the broking of its insurance requirements depending on the skills that the insurance brokers may bring to the activity and to decide the manner in which the remuneration or fee payable on the business may be shared among them.(3)In such a situation the registered insurance brokers shall enter into Terms of Business Agreement for providing insurance broking services to the specified client and the Agreement shall include, amongst other things, the manner defining the duties and responsibilities of each registered insurance broker, the manner of sharing of remuneration or fee among themselves, the reason for providing insurance broking services jointly.(4)The manner in which the remuneration is shared among the co-brokers shall be disclosed to the insurer.Direct Co-broking(5)Each of the direct insurance co-brokers shall be insurance brokers who are holding valid certificate of registration in the class of business concerned and each co-broker shall be responsible to ensure compliance with the co-broking provisions and guidelines issued by the Authority from time to time.(6)In any case, the total of remuneration shared among the insurance brokers together shall not be more than the limits specified in regulation 26.(7)The insurer will be guided by the instructions of the client with regard to payment of remuneration to each co-broker for their share.(8)Co-broking is not permitted for individual and retail lines of insurance business.Reinsurance Co-broking(9)Each of the co-brokers on a reinsurance placement shall also be responsible to ensure that these regulations are complied with by themselves and any foreign brokers engaged by them.(10)Where a reinsurance placement is co-broked with a foreign reinsurance broker, the registered broker in India shall only use reinsurance co-brokers who agree to comply with the requirements of these guidelines and shall be responsible to secure compliance with these regulations or other guidelines to the extent applicable, by the foreign reinsurance co-broker.(11)The insurer will be guided by the instructions of the client with regard to payment of remuneration to each co-broker for their share or to the lead co-broker who will then be responsible to pay the other co-brokers.(12)The name and other particulars of the foreign reinsurance co-broker shall be disclosed to the insurer.
