Why do businesses buy insurance?
Business needs insurance for their smooth functioning, without any interruption caused by natural calamities like earthquake, flood, windstorm, hurricane, etc. or by manmade disaster like fire, theft, intentional damage, accidents, riots, etc.
A business policy acts like an additional credential in any business dealings with your clients. By insuring your business, you show that safety, longevity and un-interrupted service are the prime concern of your company and that you understand your responsibilities.
What is the starting point to buy insurance?
The starting point to buy insurance is when you understand the potential risks faced buy you/ your assets and you decide to take appropriate cover for the same. After this, you select the best insurance broker who will guide you about the various plans of different companies and help choose the best.
Can I get external help in buying Insurance?
Yes, it is always advisable to seek professional help from a qualified financial/ insurance advisor who can assess the nature of risks and has the skill set to match the requirements with the correct insurance plan for your security.
How can a broker help in buying insurance?
A broker is an authorized insurance intermediary licensed by the IRDA (Insurance Regulatory and Development Authority).
The responsibilities of the broker are
- Contact the prospects for their insurance requirements, study their needs and offer the best-suited insurance product for their need.
- Complete all related formalities, including filling up proposal forms, collecting premium, arranging medical examination, collecting proofs, reports and other information required by the insurance company.
What is the range of services that a broker can provide?
The services offered by the broker are
- Procuring detailed information about the nature of the client’s business, the associated risks and the existing provisions for risk management.
- Collecting underwriting information required by the insurance companies.
- Submitting quotations received from insurer.
- Selecting the best and most appropriate insurance solutions.
- Updating the clients about the news and developments in the insurance markets.
- Acting promptly on the requests of the clients and providing him the progress reports.
How is a broker remunerated?
Remuneration of the broker is dependent on the amount of business he or she generates or the total premium collected under various policies. Brokers’ remuneration is given by Insurance Companies on percentage basis on the premium collected as decided from time to time by IRDA.
How do I select my Insurance broker?
- Experience:An insurance broker should have a good experience in the insurance business. This can be obtained from its website or seeking information directly.
- Credentials:Relevant qualifications, range of expertise, recency and relevancy of the qualification, knowledge of the micro and macro features that affect the industry.
- Communication:The communication style of the broker should be easily understood.
- Easy Access:The broker should be easily accessible and prompt in reverting to queries.
How do I select my Insurer?
Below are the important points to be considered before selecting an insurance company.
- Financial Strength:Financial strength is the company’s capability to fulfill its promise when the need arises.
- Claim Process:Ease of making a claim.
- Claim Settlement:Insurance companies having a track record for settling claims promptly.
- Additional Riders:Availability of optional and additional benefits or bonuses, etc.
