| S. No. |
Description of Services |
Insurance Agent or
Insurance Employee of Company |
Insurance Broker |
| 1. |
Representative |
He represents only a
particular insurance company |
He represents only a
particular insurance company |
| 2. |
Working Area |
He works for a particular
branch of an insurance
company. |
Broker is allowed by IRDA to deal with all the Insurance companies in public sector
or private sector in India. |
| 3. |
Technical Qualification |
Not required. |
Mandatory as notified by IRDA. |
| 4. |
Experience in
Insurance field. |
Not required. |
Mandatory as notified by IRDA. |
| 5. |
Staff Investment |
Not required. |
Minimum Six Technically qualified persons with requisite experience is compulsory. |
| 6. |
Investment |
No investment. |
Minimum Capital invested is
Rs. 50.00 lacs. |
| 7. |
Security Deposit |
Nil |
FDR of Rs. 10 lacs lien marked to IRDA and Professional Indemnity Insurance. |
| 8. |
Insurance Products
Knowledge |
Knows insurance
products of his insurance
company only. |
Broker is aware of all type of insurance products available
from public sector and private sector insurance companies.
At present 20 General Insurance companies, 3 Health
Insurance companies and 23 Life Insurance companies
are working in India. |
| 9. |
Availability of Best
Insurance Product. |
Not Aware |
Broker always advise best product available in
the market. |
| 10. |
Designing of
Insurance Policy |
Designing is restricted
within the limitations of
the insurance company. |
Broker designs the insurance policy as per
client's requirement and negotiate with the
different companies. |
| 11. |
Fixing of Adequate Sum
Insured as per policy Terms. |
He accepts the sum insured
as declared by the client. |
Broker advice and workout the correct sum insured
of the assets that are to be insured. |
| 12. |
Policy Auditing /
Examination |
They don't audit
the policy. |
Broker audits and examines the policy and
ask the insurance company to rectify the
errors/deficiencies immediately. |
| 13. |
Preparation of
Claim Documents. |
They don't prepare
claim documents |
Broker is bound by IRDA to advise / help the
client to prepare claim document as per
surveyor / insurance company requirements. |
| 14. |
Liaison / Negotiation &
follow up with surveyor. |
They do not play
any role for Negotiation |
Broker is bound by IRDA to liaise / negotiate with surveyor
and follow up with him on behalf of client for speedy
submission of surveyor report to insurance company. |
| 15. |
Follow up with
Insurance Company. |
Yes |
Broker is bound by IRDA to negotiate with
Insurance Company and follow up with him on
behalf of client for speedy settlement. |
| 16. |
Deficiency in Service |
No accountability |
Broker is accountable to the client. |
