What is role of a Broker?

• A broker is a neutral domain expert who is updated on current insurance law practices and competence of each insurer.
• The broker can place business with all insurers and is remunerated by the insurer and can find a product suitable to client's requirement ( whereas an agent can work with only one insurer & is bound by the available products of that insurer )
• Broker studies the requirement of the insured and designs insurance program keeping in mind risk appetite & claim servicing capability of the insurer and risk management philosophy of the client
• Broker has competent personal and systems for handling and servicing of claims including review of insurance portfolio.
• Broker can also manage insurance portfolio of the consumer on fee basis
• Broker can design tailor made products for the special needs of the client
• Broker assists in policy audit, risk management, preparation of RFQ and Making a comparison of terms & conditions and rates

Which are the common Exclusions?

• Loss or destruction caused by War, invasion, act of foreign enemy etc.
• Loss or damage directly or indirectly caused or attributable to Ionizing radiation or contamination, nuclear fusion etc.
• Intentional self Injury, loss where the insured, family member are involved as an accessory.
• Wear and tear, normal deterioration or
• Consequential losses

What are the Legal Perspectives regarding insurance?

• Section 64 VB makes it compulsory to pay total premium before commencing the risk.
• No risk can be assumed from back date.
• All liability policies and Mediclaim cover have retroactive benefit

What are the Common problems faced in insurance

A study conducted by National Insurance Academy, Pune in early nineties had found the following reasons for delay and disputes in settlement of insurance claims.

• Sum insured in not adequate
• Perils covered are not properly understood.
• The insured is not aware of presenting the claims properly.

Solutions:

• Utilize the services of a professional team of experts who have necessary qualification, experience and exposure to the industry, underwriting, claims and have handled large portfolios and claims
• Basis of fixing Sum Insured should be clear and Sum Insured worked on the same as all policies have condition of average

Be aware of the perils that need to be covered and do a cost benefit analysis before finalizing the cover

• Utilize services of your broker at the time of a claim
• Review your insurance portfolio periodically with your broker