Like in many other countries, in India as well, the concept of insurance brokers have been introduced by the Insurance Regulatory & Development Authority of India (IRDAI) through the Insurance Brokers Regulation 2002 which was amended in 2013. Functions and code of conduct of an insurance broker has been mentioned in these regulations.
Who is an Insurance Broker?
- Insurance Brokers specialize in insurance and risk management
- Insurance Brokers provide advice on insurance to their clients
- Insurance Brokers help individuals or businesses in the identification of risk and suggest suitable insurance solutions to cover the risks
- Insurance Brokers provide technical advice on making an insurance claim
- Insurance Brokers are subject matter experts on terms and conditions, coverages and exclusions so they can aid you in choosing appropriate insurance solution
- Insurance Brokers can help in arranging and placing the insurance cover with the chosen insurance company.
Benefits of Insurance Broker
- Insurance policies are a complex document and need a thorough understanding of products, insurance brokers being subject matter experts can help you in choosing the most beneficial policy for you.
- Insurance brokers can help you in finding the most suitable insurance plan for you and will negotiate on the premium on your behalf
- Insurance Brokers can advise you if there is any special situation you should be aware of.
- You can include risk management program through which you can take some of the business risks, through this you can effectively reduce premium
- Going to buy a policy doesn’t cost you more than buying directly as insurance brokers are paid by the insurance companies to sell their products.
- Insurance Brokers can aid you efficiently in the insurance claim process as they have the technical know-how of the complete process
Can your insurance broker help in claim process?
Yes, it is one of the primary functions of the insurance brokers to help the customers in matter of claims. They do it without charging any additional fees.
What queries you can ask broker?
Before you avail of any of the services of an insurance broker, you can ask the following questions
- Qualifications of a broker
- Range of services
- Queries related to servicing of your accounts
- Average business turnover of their clients
- Remarks/Views of some of their clients
- Options/solutions for your insurance needs
- Commitment to their services
Source: Insurance Brokers Association of India (IBAI)