Professional Documents
Culture Documents
The functions of a broker shall include any one or more of the following:
Familiarising himself with the client's business so that this can be explained to an
insurer and others;
A company desirous to become a broker must decide the area of operation i.e. Life
Insurance, General Insurance or Reinsurance.
The company must appoint a Principal Officer to carry out the functions as a
broker.
The role of broker is not just limited to selling of policies but also to guide the
insured according to his need.
An application, not complete in all respects and not conforming to the instructions
specified in the Form A and these regulations, shall be rejected.
The Authority on being satisfied that the applicant fulfills all the conditions
specified for the grant of licence, shall grant a licence in Form B and send an
intimation thereof to the applicant mentioning the category for which the Authority
has granted the licence. The license shall be issued subject to the insurance broker
adhering to the conditions and the code of conduct as specified by the Authority
from time to time.
A licence once issued shall be valid for a period of three years from the date of its
issue, unless the same is suspended or cancelled pursuant to these regulations.
An insurance broker may, within thirty days before the expiry of the license, make
an application in Form A to the Authority for renewal of license.
Every applicant eligible for the grant of a licence shall pay such fees in such a
manner and within such a period as specified in Schedule II.
Relationshi
p
INSURANCE
BROKER
Transaction
INSURANCE
COMPANY A
INSURANCE
COMPANY B
INSURANCE
COMPANY C
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INSURANCE
AGENT
Transaction
INSURED /
CLIENT
5) Bancassurance
Tie up with banks to sell insurance
products
Routes of participation include
Providing fee based insurance service
without risk participation
Investing in Insurance Co. for providing
infrastructure and service support
Set up joint venture insurance company
with risk participation
Advantage of increasing profits without
investing huge capital ( fee - based income)
Insurance Co. gets readymade consumer
database