Starting an insurance company in India is a dream for many entrepreneurs, but it cannot happen without approval from the Insurance Regulatory and Development Authority of India (IRDAI). IRDAI is the central authority that governs all insurance-related businesses in the country. If you want to launch your own insurance company, get an Insurance Broker License Registration, or register an Insurance Self-Network Platform (ISNP), you must follow the guidelines and get proper IRDAI approval.

In this blog, we will explain how to get IRDAI approval to set up an insurance company, the process involved, documents required, and how Corpbiz can make it easy for you.

What is IRDAI?

IRDAI (Insurance Regulatory and Development Authority of India) is a government agency that regulates the insurance industry in India. It ensures fair practices, transparency, and financial stability in the insurance sector. Whether you’re planning to launch a life insurance, general insurance, or health insurance company, you must get approval from IRDAI.

Types of Insurance Business Licenses from IRDAI

Insurance Company License Registration
Required to start an insurance company (life, general, or health insurance).

Insurance broking License Registration
Needed for those who want to act as intermediaries between customers and insurers.

ISNP Registration Online (Insurance Self-Network Platform)
Required for insurance companies or brokers who want to sell insurance products online through their own digital platform.

Step-by-Step Guide to Get IRDAI Approval for an Insurance Company

Step 1: Decide the Type of Insurance Business

First, you need to decide the nature of your insurance business. It can be:

• Life Insurance
  
• General Insurance (motor, travel, home)
  
• Health Insurance
  
• Reinsurance
  

Each category has separate compliance rules under IRDAI.

Step 2: Form a Company

To apply for an IRDAI license, you must first incorporate a company under the Companies Act, 2013 with a suitable business objective. The company must have:

• A minimum paid-up capital of ₹100 crore for a general or life insurance business
  
• A minimum of ₹200 crore for a reinsurance company
  

Step 3: File the R1 Application (Requisition for Registration)

The next step is to submit Form IRDAI/R1, which is the initial application for registration. This form includes:

• Business plan
  
• Capital structure
  
• Details of promoters and directors
  
• Shareholding pattern
  
• Proof of capital infusion
  

IRDAI will evaluate whether the company meets the basic eligibility.

Step 4: Submit the R2 Application (Application for Certificate of Registration)

Once the R1 is accepted, you must file Form IRDAI/R2 for a Certificate of Registration. You must submit the following:

• Certified copies of the MoA and AoA
  
• Details of the actuarial, underwriting, and claims settlement process
  
• Infrastructure readiness
  
• Compliance certificates
  
• Financial projections for the next 5 years
  

Step 5: Grant of Certificate of Registration

After a detailed review, IRDAI will issue the Certificate of Registration, allowing the company to start operations. Once registered, the company must follow all IRDAI regulations, submit quarterly reports, maintain solvency margins, and uphold customer protection guidelines.

Documents Required for IRDAI Insurance Company License

• Certificate of Incorporation
  
• MoA and AoA
  
• Capital infusion proof (Bank Certificate)
  
• Detailed business plan
  
• Promoters’ profile
  
• Board resolution authorizing the application
  
• Infrastructure & IT systems details
  
• Organizational structure
  

Key Points for Insurance Broker License Registration

If you want to become an insurance broker, you need to apply separately for a Broker License. There are three types of brokers:

1. Direct Broker
   
2. Reinsurance Broker
   
3. Composite Broker
   

The IRDAI requires the following for broker license registration:

• Minimum capital: ₹75 lakh (Direct), ₹4 crore (Composite)
  
• Fit and Proper Certificate
  
• Business plan and model
  
• Training and qualification of key persons
  

Corpbiz helps individuals and firms with Insurance Broker License Registration from start to finish.

What is ISNP Registration?

ISNP stands for Insurance Self-Network Platform. It’s for insurance companies or brokers who want to sell insurance products online directly to customers.

Steps for ISNP Registration Online:

1. Apply online through IRDAI’s portal
   
2. Submit IT infrastructure and data privacy compliance details
   
3. Obtain necessary cybersecurity audits
   
4. Maintain grievance redressal and customer service channels
   

With the boom in digital insurance, ISNP registration is becoming essential.

How Corpbiz Helps You

Corpbiz is a trusted business consulting firm that helps you with every step of the IRDAI license registration process, including:

• Company registration
  
• Drafting business plan & compliance reports
  
• Filing IRDAI R1 and R2 forms
  
• Liaison with IRDAI officials
  
• End-to-end support for Insurance Company License, Broker License, and ISNP Registration Online
  

Our team of experts, including regulatory advisors, chartered accountants, and legal professionals, makes the approval process smooth and hassle-free.

Final Words

Getting IRDAI approval for an insurance company is a complex but rewarding process. It requires sound planning, regulatory knowledge, and timely compliance. Whether you’re setting up an insurance company, becoming a broker, or launching your online platform, following IRDAI norms is a must.

Don’t let paperwork and procedures slow you down. Let Corpbiz help you register your insurance business in India with professional ease.

FAQs

1. How long does it take to get IRDAI approval?

It can take 4 to 6 months or more depending on the completeness of your documents and IRDAI’s review process.

2. Can a foreign company start an insurance business in India?

Yes, but only through Indian subsidiary registration with FDI limits as per IRDAI norms.

3. Is an Insurance Broker License different from an Insurance Company License?

Yes. A broker sells policies from multiple insurers, while a company creates and underwrites insurance products.

4. Can I sell insurance online without ISNP registration?

No. You must get ISNP Registration Online from IRDAI to sell policies through your website or app.

5. How can Corpbiz help with IRDAI registration?

Corpbiz offers end-to-end assistance, including document drafting, legal consultation, and complete filing with IRDAI.

Atul Shukla
Senior Compliance Advisor, Corpbiz

Atul Shukla is a seasoned legal and compliance expert with over a decade of experience in business registration, regulatory approvals, and financial licensing in India. At Corpbiz, he specializes in guiding startups and enterprises through complex processes like IRDAI Registration, NBFC Licensing, and SEBI Compliance. His practical knowledge, simple approach, and dedication to client success make him a trusted advisor in the field of corporate compliance and government registrations.