Section 34 in Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018
34. Maintenance of books of account, records, etc.
(1)Every insurance broker shall prepare for every financial year -(a)a balance sheet or a statement of affairs as at the end of each accounting period;(b)a profit and loss account for that period;(c)a statement of cash/fund flow (direct method);(d)Additional statements on insurance broking business as may be required by the Authority.Note: For purposes of this regulation, the financial year shall be a period of 12 months (or less where a business is started after 1st April) commencing on the first day of the April of a year and ending on the 31st day of March of the year following, and the accounts shall be maintained on accrual basis.(2)Every insurance broker shall submit to the Authority, a copy of the audited financial statements as stated in sub-regulation (1) along-with the auditor's report thereon within 30 days of holding of the annual general meeting or before 30th September every year whichever is earlier along with the remarks or observations of the auditors, if any, on the conduct of the business, state of accounts, etc., and a suitable explanation on such observations shall be appended to such accounts filed with the Authority.(3)Every insurance broker shall, within ninety days from the date of the Auditor's report take steps to rectify any deficiencies, made out in the auditor's report and inform the Authority accordingly.(4)All the books of account, statements, document, etc., shall be maintained at the head office of the insurance broker or such other branch office as may be designated by them and notified to the Authority, and shall be available on all working days to such officers of the Authority, authorised in this behalf by it for inspection.(5)All the books, documents, statements, contract notes etc., referred to in this regulation and maintained by the insurance broker shall be retained for a period of at least seven years from the end of the year to which they relate. However, the documents pertaining to the cases where claims are reported and the decision is pending for a decision from courts, the documents are required to be maintained till the disposal of the cases by the court. In the case of reinsurance brokers, all other documents are required to be maintained till its natural expiry.(6)There shall be a note to their financial statements providing the details of all the incomes received from insurers and insurer's group companies, insurer-wise, by the insurance broker and also the details of payments received by the group companies and/or associates and/or related parties of the insurance broker from any insurer and the details thereof.(7)A certificate confirming the compliance of these regulations in the format given in Schedule II - Form UA shall also be submitted by the auditor.(8)Every insurance broker shall submit to the Authority the details of statutory auditors engaged by them along with the audited accounts as per Schedule II - Form V of these regulations. The statutory auditors of the insurance broker shall be appointed for a maximum continuous duration of up to 5 years.(9)Every insurer who is engaging the services of an insurance broker shall file with the Authority a certificate separately for all such insurance brokers in case the remuneration and other payments made to insurance broker exceeds the limits stipulated, in the format given in the Schedule II - Form W to be signed by the CEO and CFO of the insurer. A similar certificate from the Principal Officer and CFO (or its equivalent) of the insurance broker certifying that the remuneration and other payments received by the insurance broker from the insurer shall be filed with the Authority as given in Schedule II - Form W.
