Eligibility Criteria for Obtaining Registration as an IIIO

Are you curious about the eligibility conditions for obtaining IIIO registration? If so, you’ve come to the right place. In this in-depth analysis, we’ll walk you through the crucial conditions needed to register as an International Financial Service Centre Insurance Intermediary Office (IIIO).

Unincorporated Form: Specific Requirements in IFSC

Setting up your presence in an International Financial Services Centre (IFSC) in an unincorporated form requires compliance with specific requirements.

For applicants registered as intermediaries or insurance intermediaries with IRDAI:

• The candidate must possess a valid certificate of registration from IRDAI. It’s imperative that the certificate is neither withdrawn, cancelled nor suspended.
• The candidate should have experience acting as an insurance intermediary in the category specified in their registration.
• A “No-objection Certificate” from IRDAI is a requirement for any candidate looking to establish a branch office in IFSC.

For applicants registered or licensed as an insurance intermediary in a jurisdiction outside India:

• Any foreign applicant must hold a valid certificate of registration from their home country’s regulatory or supervisory authority. It’s important that the certificate remains unwithdrawn, without cancellation or suspension.
• It’s a must for the foreign applicant to have performed duties as an insurance intermediary in the category they’re registered in.
• The applicant should hail from a FATF-compliant jurisdiction or country.
• Registration or certification in a national regulatory environment that has a Double Taxation Avoidance Agreement with the Government of India is mandatory for any foreign applicant.
• Foreign applicants are also required to obtain a “No-objection Certificate” from their home country regulatory or supervisory body to establish a branch office in IFSC.

Incorporated Form: Meeting the Criteria in IFSC

Are you an entity looking to set up a presence in an IFSC in an incorporated form? Well, the following requirements are mandatory for any company incorporated under the Companies Act, 2013 or a firm, a co-operative society, or a body corporate incorporated under the law of any country outside India:

• The candidate must provide evidence of the minimum net worth or paid-up equity capital as specified in the IIIO Regulations.
• It’s required for any applicant to originate from a FATF-compliant jurisdiction or country.
• The candidate should possess registration or certification in a National Regulatory Environment that is signatory to the Double Taxation Avoidance Agreement with the Government of India.

Once the specified criteria are met, aspirants can proceed to the next step: Filling out Form B for registration.

In summary, meeting the eligibility conditions for securing IIIO registration is a critical phase. This in-depth analysis cuts through the clutter, providing you with detailed, actionable insights to help you understand every pivotal requirement. Whether you’re operating in an unincorporated or incorporated form, and whether you’re a national or foreign applicant, you now have the guidance to navigate the IIIO registration process with clarity and confidence.

Establishing Presence in IFSC

Entities may establish a presence in IFSC either in an incorporated or unincorporated form (i.e., branch form).

Requirements for IIIO Registration

Entities need to adhere to specific eligibility criteria for obtaining IIIO registration. The conditions differ based on whether the entity is setting up presence in an IFSC in an unincorporated or incorporated form.

Bureau of Insurance Intermediaries

The term insurance intermediary, as defined under the IIIO Regulations, refers to insurance broker, corporate agent, insurance surveyor and loss assessor, third party administrator and other intermediaries as stipulated by the authority occasionally.

Insurance Brokers Explained

There are three distinct categories of insurance brokers defined under the IIIO regulations, which are direct broker, composite broker, and reinsurance broker.

Insurance Self-Network Platform

An electronic platform set up by an insurance intermediary for distributing or soliciting insurance business is referred to as an insurance self-network platform.

Insurance Surveyor and Loss Assessor

People engaged in giving services related to losses under contracts of insurance and registered with the authority under the IIIO regulations are termed as insurance surveyors and loss assessors.

Principal Officer and Risk Management

A principal officer is a vital employee of the IIIO responsible for the administration, operations, and decision-making. Risk management, on the other hand, entails risk assessment, advisory, mitigation, or minimisation services provided by an insurance broker.

Categories of Insurance Intermediary

Under the IIIO regulations, there are various categories of insurance intermediary for which an application can be made for certificate registration.

Legal Framework to Establish as IIIO in IFSC

Certain legal forms are permissible for establishing an IIIO as a Composite Broker, Direct Broker, or a Reinsurance broker.

In summary, these regulations, guidelines, and procedures are aimed at ensuring the orderly conduct of (re)insurance intermediation business within International Financial Services Centres, taking into consideration the unique requirements and benefits of operating in such centers.