A Direct Broker : licensed by the Authority to act as such, for remuneration carries out the functions either in the field of life insurance or general insurance or both on behalf of the clients. Reinsurance Broker : is one who for remuneration arranges reinsurance for direct insurers with insurance and reinsurance companies. Composite Broker : is one who for the time being licensed by the Authority to act as such for a remuneration arranges insurance for its clients with insurance companies and/or reinsurance for its clients. Brokers are not tied to only one Insurance Company (Life or General/Health) but could deal with various companies, depending on the need of the client. Requirements : The insurance Broker can be a proprietor/proprietary concern, a partnership firm, a company formed under the Companies Act, 1956, a Cooperative Society registered under the Cooperative Society act, 1912 or under any law for the registration of cooperative societies or any other person recognized by the Authority to act an insurance broker. The Principal Officer who possesses the minimum qualification and insurance Booker examination is the Chief Executive officer of the Broking Company to exclusively carry out the functions of an insurance broker. Functions include placing business, risk management, consultancy, assisting in claims, maintaining underwriting and claims records. The Principal Officer and persons soliciting and procuring business shall undergo at least 100 hours of theoretical and practical training from an Institution recognized by the Authority and pass an exam, at the end of the period of training conducted by National Insurance Academy, Pune. The applicant seeking to become an insurance broker shall have minimum amount of capital (a) Direct Broker – Rs. 50 lacs (b) Reinsurance Broker – Rs. 200 lacs (c) For Composite Broker – Rs. 250 lacs. The business of the insurance broker shall be carried out in such a manner that, not more than 50% of the premium (quantum, receipts, etc., as the case may be) in the first year of the business, 40% of the premium in the second year of the business and 30% of the premium from the third year of business onwards shall emanate from any one client. Every insurance broker shall before the commencement of the business, deposit and keep deposited with any scheduled bank a sum equivalent to 20% of the initial capital in fixed deposit, which shall not be released to the broker unless approval is obtained from the Authority. Every insurance broker shall take out and maintain and continue to maintain a professional indemnity insurance cover throughout the validity of the period of the licence granted to him by the Authority.