Every insurance intermediary must abide by the Code of Conduct specified in Schedule III. This mandatory conduct requirement applies to intermediary operations and management, making adherence to the Schedule III standards an express obligation for each insurance intermediary. The Code of Conduct is the prescribed standard for operational and management conduct, and compliance is required from every intermediary within this category.

Insurance intermediaries must maintain a Board or equivalent-approved policy governing the solicitation and servicing of insurance policies. The policy must address multiple insurer tie-ups, product types, solicitation modes, grievance-redressal arrangements, reporting requirements, and other requirements relevant to different business segments. The Board or equivalent must review the policy at least once every three years.

Remuneration, reward, fees, and any other form of payment payable by an insurer to an IIIO must be made only in the mode and manner specified by the Authority. The requirement applies regardless of the label assigned to the payment and covers all insurer-funded compensation or rewards to an insurance intermediary.

Beneficial ownership, contribution and control of an IIIO may be changed only through the manner and processes specified by the Authority. The provision places such changes within the Authority's prescribed regulatory procedure.

Every IIIO must purchase and continuously maintain professional indemnity insurance meeting Schedule V requirements throughout the validity of its registration. Newly registered IIIOs may, in appropriate cases, be allowed to obtain the policy within twelve months of registration. An IIIO established in branch form must meet insurance requirements at its head office and obtain an endorsement covering liabilities arising from IFSC branch operations.

Insurance intermediary registration requires applicants to maintain prescribed paid-up capital and net worth. Company capital must be paid-up equity shares, while capital interests and equivalent contributions must remain unpledged and unencumbered. Investments by promoters, shareholders, partners, or members must come from owned funds and cannot be financed through borrowings or loans. An IIIO must immediately restore any net-worth shortfall and report compliance. Half-yearly paid-up capital and net-worth certificates must be submitted from a statutory auditor, specified Indian professionals, or another appropriately qualified person specified by the Authority.

An IIIO must use a name reflecting its registered insurance intermediary activity, subject to an exception for foreign intermediaries establishing an IFSC branch. It must display its registration certificate and prescribed registration particulars in stakeholder communications, and cannot use another name without prior approval. Business must commence within 180 days of certification. An extension may be requested at least 30 days before expiry, but cannot extend beyond 18 months from certification.

Refusal of renewal requires an applicant to cease acting as an insurance intermediary from the effective date specified in the communication to the IIIO. A refused IIIO must continue servicing existing contracts only until their expiry or for a maximum of six months, whichever is earlier, and must arrange for another registered IIIO in the same category to attend to those contracts. The Authority may seek details of those arrangements.

Registration refusal procedure requires communication of application deficiencies and allows the applicant thirty days to rectify them. If the deficiencies are not rectified to the Authority's satisfaction, registration may be refused only after the applicant receives an opportunity to make written submissions on the proposed grounds. Refusal of registration, including refusal to renew a certificate, must be communicated with reasons or grounds for rejection.

Renewal of an IIIO certificate requires submission of the prescribed application and renewal fee at least 90 days before expiry. Applications submitted less than 30 days before expiry but before registration expires attract an additional penalty fee. Renewal may be considered up to 60 days after registration ceases, subject to payment of the additional fee and condonation of delay on satisfactory reasons. An IIIO with an expired certificate pending renewal cannot undertake fresh insurance business and may only service existing policyholders until renewal.

Scope of operations for IIIOs distinguishes permitted insurance activities by registration category and location. Direct insurance brokers may operate from the IFSC, other Indian SEZs and outside India, subject to limits on soliciting business from the Domestic Tariff Area. Composite and reinsurance brokers may also operate in the Domestic Tariff Area. IIIOs may transact only authorised classes of business. Registered TPAs, surveyors and loss assessors have restricted policy-servicing functions, with a specified overseas-treatment exception. All IIIOs must comply with applicable laws and conduct financial transactions in freely convertible foreign currency other than Indian Rupee.

Insurance intermediary registration requires in-principle approval followed by compliance with capital infusion, branch-head training, professional indemnity insurance, and other required conditions. Following satisfaction of applicable compliance obligations, a registration certificate may be issued for the relevant category and remains valid for three years unless revoked or cancelled. Deficiencies must be communicated with time for rectification, and refusal requires reasons and an opportunity for written submissions.

Registration and renewal of registration for IIIOs require exclusive conduct of authorised insurance-intermediary business, compliance with applicable regulatory requirements, KYC and AML guidelines, written disclosure of materially false information or material changes, and adequate client grievance redressal. IIIOs must maintain prescribed policy-wise records and books of account, comply with the Code of Conduct, avoid multi-level marketing for insurance business, and may be subject to additional registration conditions.

Registration applications require the prescribed form, supporting documents and fees. Consideration addresses statutory disqualifications, operational infrastructure, prior refusal or withdrawal of certification or licensing applications, capital and net worth commitments, and appointment of a qualified Principal Officer or Branch Head and personnel. Fit and proper status of relevant management and controlling persons, financial capacity of promoters or investors, and policyholder interests are assessed. Additional eligibility, information, clarifications and documents may be required, and applicants must promptly disclose matters affecting consideration.

Registration as an insurance intermediary in an IFSC covers insurance distributors and insurance claim service providers. Domestic and overseas intermediaries seeking an unincorporated branch must hold active relevant registration, have experience in the relevant category, and obtain the required no-objection certificate. Overseas applicants must also satisfy FATF-compliant jurisdiction and Double Taxation Avoidance Agreement-linked regulatory environment conditions. Other eligible entities must meet prescribed minimum net worth or paid-up equity capital requirements, with permitted legal forms varying by intermediary category.

Eligible applicants include IRDAI-registered intermediaries, foreign intermediaries registered with home-country regulators, Indian companies, firms, co-operative societies and foreign body corporates. Insurance brokers comprise direct, reinsurance and composite brokers, each permitted to undertake defined solicitation, arrangement and risk-management functions. Corporate agents solicit and service insurance business, while third party administrators provide prescribed health services for insurers. The framework also defines insurance self-network platforms, authorised verifiers, qualified personnel, principal officers and the application of statutory meanings to undefined terms.

Insurance intermediary registration and operations in an International Financial Services Centre are subject to a prescribed process under the International Financial Services Centres Authority (Insurance Intermediary) Regulations, 2021. The process regulates the entry and operational activities of insurance intermediaries within that Centre under the regulatory purview of the International Financial Services Centres Authority Act, 2019.

Regulation 1 gives the International Financial Services Centres Authority (Insurance Intermediary) Regulations, 2021 their short title and stipulates that they enter into force upon publication in the Official Gazette. The regulations are made under enabling provisions of the International Financial Services Centres Authority Act, 2019 and the Insurance Act, 1938, for insurance intermediaries in International Financial Services Centres.

The Performance Review Committee reviews the Authority's functioning annually for legal compliance, transparency and governance practices, and risk management. Its compliance review assesses whether regulations conform to applicable law, reduce stakeholder compliance burden, are fair, non-discriminatory and accessible, and provide clear and predictable guidance. Risk review assesses monitoring measures, risk identification, categorisation, mitigation, and records of breaches. The Committee may access relevant records, require employee attendance, examine registered complaints, submit findings, and provide a consolidated annual report for action.

Composite show-cause notices under sections 73 and 74 may cover multiple financial years where demands arise from a common factual matrix. Consolidation is procedural only: each financial year retains its independently calculated statutory limitation, and a later year's timeline cannot extend an earlier year's deadline. The use of any period and such periods supports statements for additional periods on the same grounds. Clear year-wise tax breakups allow liabilities to be disaggregated for limitation, adjudication, statutory benefits, and defence, preserving natural justice.