- For Fire insurance: type of construction, occupancy, location and types of goods, etc. are taken into account.
- For health insurance, age, sex, profession, habits, health conditions, etc., are taken into account.
Types of Insurance intermediaries
Following are the types of Insurance intermediaries: –
- Insurance agent: – An insurance agent is licensed by the IRDA to solicit and acquire insurance business including business relating to continuance, renewal or revival of policies of insurance. An agent may be of two types:-
- Individual Insurance Agent: – He is the one who holds a license to act as an insurance agent either for one life insurer or a general insurer.
- Composite Insurance Agent: – A Composite Insurance Agent means an insurance agent who holds a license to act as an insurance agent for a life insurer and a general insurer.
- Corporate Agent: – A Corporate Agent is the one who holds a license to acts as an insurance agent either for one life insurer or a general insurer.
- Composite Corporate Agent: – A Composite Corporate Agent is the one who holds a license to act as an insurance agent for a life insurer and a general insurer.
- Insurance broker: – An insurance broker is licensed by the Insurance Regulatory and Development Authority (IRDA) who arranges insurance contracts with insurance companies on behalf of his clients. He may represent more than one insurance company. In other words, he may deal with more than one life or general or both.
Functions of an Insurance agent
- To solicit and procure life or general insurance business for the insurer.
- To understand the prospect’s needs and persuade him to buy a plan of life/general insurance that suits his interests best.
- To complete the formalities (paper work, medical examination) necessary to get the policy expeditiously keep in touch to ensure that changing circumstances are reflected in the arrangements relating to premium payments, nomination and other necessary alterations.
- To facilitate quick settlement of claims.
- Be totally honest with both the prospect and the
Code of conduct of an Agent
As per regulations framed by IRDA, every agent shall adhere to the code of conduct specified below: –
- Identify himself and the insurer of which he/she is an agent.
- Show the agency identity card to the prospect and also disclose the agency appointment letter to the prospect on demand.
- Explain all available options to the prospect.