Before understanding the concept of a Key Person, it is important to first know who is considered a Person under the IRDAI (Insurance Brokers) Regulations, 2018.
As per the regulations, a Person refers to:
- A company formed under the Companies Act, 2013.
- A co-operative society registered under the Co-operative Societies Act, 1912 or any other applicable law.
- A Limited Liability Partnership (LLP) formed under the LLP Act, 2008, with no non-resident partner as defined under FEMA, 1999.
- Any other person recognized by the Authority to act as an Insurance Broker.
To obtain registration as an Insurance Broker, the entity is required to appoint certain Key Persons who play crucial roles in the management and operation of the brokerage.
Important Key Positions
- Broker Qualified Person: An employee or director engaged in solicitation and procurement of insurance business who has completed mandatory training and passed the prescribed examination.
- Key Management Person: Includes Chief Executive Officer (CEO), Chief Marketing Officer (CMO), Chief Finance Officer (CFO), Chief Technical Officer/Head-IT, Head-Reinsurance, and Compliance Officer.
- Principal Officer: An executive officer designated to perform duties and responsibilities under the regulations. This may be the CEO, Whole-time Director, Managing Director, Managing Partner, Managing Trustee, or an individual exclusively appointed to carry out insurance broker functions.
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