Why you need the services of an Insurance Broker?

Like other countries, an Insurance Broker concept was introduced by the Regulator known as Insurance Regulatory & Development Authority of India (IRDAI) through Insurance Brokers Regulation 2002 and amended in 2013. The Regulations clearly defines the functions and code of conduct of an Insurance Broker.

Who is an Insurance Broker?

• An Insurance broker is a specialist in insurance and risk analysis.
• Brokers, act on behalf of their clients and provide advice in the interests of their clients.
• A broker will help you identify your individual and/or business risks to help you decide what to insure, and how to manage those risks in other ways.
• Insurance brokers can give you technical advice that can be very useful if you need to make a claim.
• Brokers are aware of the terms and conditions, coverages and exclusions and costs of a wide range of insurance policies which are designed by competitive insurers. So they can help you find the most appropriate cover for your own circumstances and cost.
• Brokers can help arrange and place the cover with the chosen insurer which will be helpful to you at the time of any claim.

Why use a broker?

• Some insurance policies are complicated, and an insurance broker can help you understand the details of a policy and also work out what level of cover you need so that you can make sure, you are properly protected and at a reasonable cost.
• Brokers can often find you a good deal on insurance because they have a thorough understanding of the insurance market and can negotiate premiums on your behalf.
• A broker will explain your policy to you and advise you if there are any special situations you need to know about.
• Brokers can prepare a customized insurance and RISK MANAGEMENT PROGRAM for YOU or your FIRM and they can design the policies, negotiate better terms with the insurance companies and place the cover with the insurer, according to your needs and satisfaction.
• By including a risk management program, which puts some of the responsibility for risk prevention and loss minimization on you or your business, you can reduce premium costs.
• By utilizing the services of a BROKER doesn’t cost anything to you more than the premium even if you are going to place the business directly with an insurance company.
• If any necessity arises due to any insured peril, if you need to make a claim on your policy, your BROKER will assist you throughout the process will liaise with the insurer on your behalf.

Can your BROKER help you make a claim?

Yes, it is one of the functions of the BROKER without charging any FEES.
In case the business is placed directly and you need the assistance of a BROKER to prepare claims documents, present to the insurers, negotiate with the insurer, the BROKER is entitled to charge fees.

How can you find out the best BROKER suitable for your business?

“Consensus ad item” of any business partnership is success key of for both the parties. It is advised that the following questions may be asked before entering into any partnership

• The broker’s qualifications
• How long the BROKER is in the industry.
• The range of services
• Experience with your type of business in handling insurance and claims
• The size of the broker’s typical client
• References from satisfied clients
• Level of commitment.