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Can a single company be incorporated for the consultant or agent of insurance and share trading broking business?

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Can a single company be incorporated for the consultant or agent of insurance and share trading broking business

Yeah, a single company be incorporated for the consultant or agent of insurance and share trading broking business. Brokers can be prosecuted because they fail to give a promise. IRDA may revoke the broker’s license if found guilty. As brokers, they are obliged to offer products from several insurers at the same time, which you find best for your interests. An insurance company hires insurance agents who can reach customers in person. An agent in insurance is only responsible for filling and processing the correct form, ensuring paperwork and timely premiums. The foremost important duty of the insurance agent is to ensure that you receive the right coverage as assured by the insurance company. Insurance agents can give you in-depth information about the insurance company they represent and the products they offer. It is your responsibility to ensure that the insurance you have chosen fully covers your interests

It is important to know the difference between an insurance agent and an insurance broker how you can best use your services for purchasing new insurance policies and other financial requirements as an insurance policyholder.

What insurance advisors or agents and brokers do, so you can make an informed choice when buying insurance.

Also Read :- What the approximate amount for conductor insurance if they died in accident?

Difference between insurance agent and broker

Who is the insurance agent?

An independent insurance agent or insurance sales agent usually sell you a variety of financial products, such as property insurance, casual insurance, life insurance, health insurance, and much more. The insurance agent can be a person who performs the work of an intermediary between the insurance company and the insured person.

Who is the insurance broker?

An insurance broker sells, top, or negotiates insurance for compensation. A broker works self sufficient, which means they can offer you a host of insurance products and services to consider. Insurance brokers and brokerage firms have a high responsibility to help meet your financial needs.

Criterion Consultants or agents Broker
Who do they represent?

 

An insurance company. You are their customer.

 

You mean your customer.

 

What do they do?

 

Provide your products available with the insurance company with which they are also, at. Responsible for accurate processing of form, paperwork and premium.

 

Help you choose the most suitable insurance policy among various insurance companies and products

 

How do they work? An insurance agent can represent a maximum of 1 life insurance, 1 general insurance, and 1 health insurance company and can give you detailed information about it.

 

They can give you information about several insurance companies and can help you compare their products.

 

Representation

 

Insurance agents represent only one company, and they sell products in the lineup of the company. In addition to sales policies, agents also focus on improving the brand image of the company they represent.

 

Brokers usually sell insurance products related to various companies in the market. They have no allegiance to a particular company and sell products based on customer needs.

 

Training Since insurance agents represent a particular company, they receive in-house training on various products offered from their respective companies

 

Brokers are not trained by any specific companies because they sell a wide range of products. There are external courses that can be taken by brokers before selling an insurance product.

 

Licensing Agents who have received training must obtain a license as per the rules laid down by the Insurance Regulatory and Authority Development Authority (IRDAI).

 

Brokers must be licensed by IRDAI to operate in the market. They are expected to meet a certain level of business rules before obtaining a broker license.

 

Answerable An insurance company is answerable for the actions of its agents. IRDAI has the right to punish the insurance company for any wrongdoing of its insurance agents.

 

Brokers have great accountability because they are not supported by any specific company. Brokers are obliged to offer several products to their customers and disclose the prices of these products. Brokers can sue for any misleading information that they provide to their customers.

 

Let’s start with the basics. If you want to get a new insurance policy or want to make sure that the policy you currently have in your interest is your Go-to Person Insurance Broker. Brokers are provided a broker license by the IRDA which gives them extra prowess and technical knowledge.

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