M.PADMINIASST.PROFESSOR

MKCE

Insurance Intermediaries

Meaning

• Insurance intermediaries are brokers or agents who represent consumers in insurance transactions. They are contracted with multiple insurance companies so they can focus on matching their client's needs with the most suitable insurance products.

Definition

• According to IRDA act 1999,under section 2(1)(f) of the act states “Intermediary or insurance intermediary includes insurance brokers, reinsurance brokers, reinsurance brokers ,insurance consultants, surveyors and loss assessors”

Different forms of Intermediaries

a) Insurance agents

b) Insurance brokers

c) Bancassurance

d) Micro insurance agents

a) Insurance Agents

• Meaning

• Types

• Eligibility

• Education qualification

• Expectations

• Necessity of agent’s training

• Training schedule and structure

• Function of agents

• An agent must not do certain things

• Rights of agent

• Liability of agent

• Remuneration to agents

• Termination of agency

b) Insurance brokers

• Functions of broker

• Processing of application for broker ship

• Licensing procedure

• Renewal of license

• Payment of fees

• Code of conduct for brokers:

Relationship with clients

sales practices

duty to disclose information

explanation of the contract

renewal procedure

claims,complaints,documenttation and advertising etc

c)Bancassurance

• Bancassurance is the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products.

Bancassurance in India

• In the year 2002 the banks of India were permitted to do insurance business for the first time.

• It is regulated by both RBI and IRDA as it is combination of bank and insurance.

• It is a Win-Win Strategy

• Example: SBI Life Insurance Company Ltd has tie up with SBI.

d)Micro insurance agents