The basic principle of insurance is to provide protection to a person or an entity from any sort of financial loss caused due to events like fire, accidents, hospitalizations, earthquakes, etc. Let us understand this with the help of an example: Ram went for a movie with his friends. Just when he reached the theatre and parked the car along the roadside, a coconut fell on the car, damaging its front windowpane. Ram understood this would be a bit heavy on his pocket, but he did not worry as he had an insurance policy in place. He knew his insurance company would bear the expenses of the damage. In such types of uncertain scenarios there is only one thing common, and i.e., Financial Loss. Insurance companies compensate for such kinds of financial losses.
It is a contract between the insured and the insurer. Now you must be wondering, “who is an insurer and who is an insured?” The answer to your question is: An insured or a policyholder is a person or an entity that buys an insurance policy and gets covered against financial losses. While an insurer or an insurance company is an entity that provides insurance and undertakes to compensate for the losses
It is a contract between the insured and the insurer. Now you must be wondering, “who is an insurer and who is an insured?” The answer to your question is: An insured or a policyholder is a person or an entity that buys an insurance policy and gets covered against financial losses. While an insurer or an insurance company is an entity that provides insurance and undertakes to compensate for the losses
| INSURANCE BROKER | OTHER INTERMEDIARIES |
|---|---|
| An insurance broker represents the client, working to find the best insurance options from multiple insurers and negotiating terms on their behalf. | An insurance agent represents a specific insurance company, promoting and selling its policies to clients. |
| An insurance broker is a corporate entity licensed by the IRDAI, operating under strict regulatory guidelines. | An insurance agent is usually an individual or a representative of a bank or insurer. |
| An insurance broker represents the client, working to find the best coverage from multiple insurers. | An insurance agent represents the insurance company, promoting and selling its policies to clients. |
| An insurance broker is a corporate entity licensed by the IRDAI, operating under strict regulatory guidelines. | An insurance agent is usually an individual or a representative of a bank or insurer. |
| An insurance broker represents the client, helping them find the best coverage options from multiple insurers. | An agent represents his insurance company |
| A broker is a corporate structure who is licensed under strict guidelines from IRDAI | Usually an Individual or Bank's/ Insurer's Representative |
| An insurance broker represents his client | An agent represents his insurance company |
| An insurance broker is a corporate entity licensed by the IRDAI, operating under strict regulatory guidelines. | An insurance agent is usually an individual or a representative of a bank or insurer. |
