What points should be kept in mind before deciding in favour of any particular insurance agent or a broker?
An agent represents one insurer whereas a broker represents a client
What points should be kept in mind before deciding in favour of any particular insurance agent or a broker?
Vikas Nagpal, Gurgaon
First, the insurance advisor must have the requisite qualification and a mandatory license issued by the Insurance Regulatory and Development Authority of India (IRDAI). Second, the advisor should be capable enough to understand your needs and offer suitable products. Associate with an advisor who can provide the entire range of products.
Insurance companies offer a wide range of products and a good advisor needs to have thorough knowledge of all these. Moreover, he should be informed about the competitors’ products so as to provide unbiased and meaningful recommendations, regardless of how much he stands to gain by way of commissions. An agent represents one insurer and therefore is bound to sell products of a particular company whereas a broker represents a client and is authorized to sell all the products available. In this respect brokers score over agents.