Professional indemnity insurance must be maintained by insurance brokers on a yearly basis throughout their registration period. Cover must indemnify errors, omissions and negligence; legal liability for loss of money or property resulting from fraudulent acts or omissions; loss, replacement or restoration of documents; and dishonest or fraudulent conduct of present or former employees. The cover must respond to all claims made during the policy period irrespective of when the underlying event occurred, and cannot require the broker to first discharge the liability before claim payment.

Insurance intermediaries must maintain integrity, competence, confidentiality, fair dealing and compliance with applicable insurance laws. Brokers must provide suitable advice, secure required mandates and know-your-customer documents, ensure complete risk disclosure, explain policy and claims terms, issue timely documentation and renewal communications, assist with claims, and operate complaint systems. Reinsurance brokers require written authority and transparent placement processes. Third-party administrators must protect data, manage grievances, support cashless claims and control fraud. Surveyors must remain impartial and avoid conflicts. Corporate agents must ensure trained personnel, truthful sales practices, post-sale support and compliant complaint handling.

Insurance brokers must advise clients, maintain market and claims records, act on client instructions, and negotiate on their behalf. Risk management services are restricted to commercial risks supported by written client confirmation and mandate; brokers cannot receive both remuneration and fees for the same service and remain responsible for external experts engaged. Co-broking requires written client consent, a terms-of-business agreement allocating responsibilities and remuneration, and insurer disclosure. Direct co-broking is prohibited for individual and retail insurance lines, while composite brokers must maintain controls against conflicts where direct and reinsurance broking concern the same contract.

Minimum capital and net-worth thresholds apply to insurance intermediaries, with separate standards for IFSC branches. Direct insurance brokers require capital of USD 100,000 and net worth of USD 80,000, while reinsurance and composite brokers must maintain net worth equal to 60 percent of their applicable minimum capital. Corporate agents and third-party administrators have specified capital and net-worth requirements, whereas surveyors and loss assessors have none. IFSC branch registrations prescribe reduced capital thresholds for direct, reinsurance and composite brokers, corporate agents, and third-party administrators, without branch-specific net-worth thresholds.

Repeal and saving provisions replace the specified IRDAI guidelines upon notification of the International Financial Services Centres Authority (Insurance Intermediary) Regulations, 2021 in the Official Gazette. Prior actions under those guidelines remain valid and are deemed to have been taken under corresponding regulatory provisions. An IIIO already operating in an IFSC must comply with additional requirements within six months of notification or any extended period specified by the Authority.

Surrender of Certificate permits an applicant to close its IIIO and surrender its certificate only after obtaining prior approval from the Authority. Closure and certificate surrender therefore remain subject to regulatory oversight.

Default by an Insurance Intermediary International Office may attract disciplinary action where the Authority considers that its operations breach applicable statutory, regulatory, circular, or guideline requirements, or are not in the interests of International Financial Services Centres. Suspension or cancellation of the certificate may be imposed only after the IIIO is given an opportunity to make submissions. Other appropriate action may also be taken under the Act.

Inspection, investigation and information powers permit the Authority to examine the affairs of an insurance intermediary and require information from an IIIO or an applicant relating to activities carried on as an IIIO.

Regulation 28 empowers the Authority to prescribe norms, procedures, processes and methods, and to grant relaxations through guidelines or circulars in accordance with the Act. The power supports implementation of the insurance intermediary regulatory framework and matters incidental to it, while facilitating and regulating insurance and reinsurance financial services in an IFSC.

An IIIO may enter into agreements with insurers for online sale of insurance products by linking to insurers' web portals or establishing an insurance self-network platform. Digital-mode insurance solicitation remains subject to conditions specified by the Authority. Sales involving online or offline lead generation and telemarketing completion must follow the specified procedure.

Amalgamation, merger, acquisition and transfer of business by insurance intermediaries require compliance with the regulatory framework and, for an IIIO, prior approval of the Authority. A limited exception applies to a branch office in an IFSC where the transferred business was not transacted by the IIIO. Transfers of all or part of an IIIO's business require approval, and a transferor cannot conduct the transferred business beyond six months. Approval is also required where transfer results in voluntary surrender of registration.

Insurance intermediaries require prior approval for changes to key management personnel, directors, partners or members, name, and corporate or registered office. Resignations of directors, partners or members must be intimated. Insurance Brokers and Corporate Agents must update information on Broker Qualified Persons or Specified Persons and claims under Professional Indemnity Policies. Information, data and documents may also be required in the specified manner and at specified intervals.

Insurance intermediaries must file periodical returns in the manner specified by the Authority, establishing an ongoing regulatory reporting obligation.

Outsourcing by insurance intermediaries is permitted for activities specified by the Authority under Regulation 23 of the International Financial Services Centres Authority (Insurance Intermediary) Regulations, 2021.

Insurance intermediary business is subject to a 50 percent single-client remuneration ceiling in each financial year. A client includes an associate, subsidiary or group concern under the same management, and the Authority's determination of common management is final. Compliance certification must accompany audited accounts and may be issued by a practising Chartered Accountant, practising Company Secretary, practising Cost Accountant, or another appropriately qualified person specified by the Authority.

Insurance intermediaries must prepare annual balance sheets, accrual-basis profit and loss accounts, direct-method cash or fund-flow statements, and additional statements specified by the Authority. Audited financial statements, auditor reports, observations and explanations must be submitted within the prescribed period, while audit deficiencies must be rectified and reported. Books and records must be maintained at the IFSC office, retained for the applicable period, and available for inspection. Financial statements must provide insurer-wise income details and disclose payments from group companies, associates and related parties, while audited accounts and balance sheets must disclose all related-party transactions.

Segregation of premium governs funds handled by registered reinsurance brokers and composite brokers under reinsurance contracts. Where permitted by mutual agreement or international market practice, a broker may collect premium for remittance to a reinsurer or receive claims from a reinsurer for onward payment to an insurer. Such collected money must be handled in the manner specified by the Authority.

Insurance intermediaries must maintain a proper internal audit system and internal controls and systems adequate to the size, nature and complexity of their business. The audit and control framework must correspond with the intermediary's operational scale, business characteristics and complexity.

Code of conduct obligations require every insurance intermediary governed by the International Financial Services Centres Authority insurance intermediary framework to abide by the standards specified in Schedule III. The Schedule III standards constitute the mandatory conduct framework applicable to intermediary operations and management, requiring adherence by each intermediary as part of its regulatory responsibilities.

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.