I was about to buy a policy, when the person I was speaking to on the phone mentioned I speak to the broker. I am confused if I should speak to an agent or a broker.
Ritesh Saldhana, Mumbai
The basic difference between an agent and a broker is that while an agent represents the insurance company, the broker represents the insured. An agent can represent one principal, that is, one insurance company, and consequently, is bound to sell the products offered by his principals. On the other hand, a broker is an independent entity who gets the mandate of his client to negotiate and place insurance policies on his behalf with one or more insurance companies. A broker does not have an exclusive contract with one company. For becoming a broker one has to obtain a licence from IRDA by fulfilling certain conditions with respect to qualification, training and adequacy of capital.
