Agent: An insurance agent engaged by the insurer is bounded by the rule; 'Qui facit alium, facit perse', which means, one, who acts through others acts through himself. The contracts and obligations arising due to acts of the agent, is as if the acts and contracts have been done by the insurer. The authority of an agent may be 'expressed' in words spoken or written or 'implied' when things are to be inferred according to the circumstances.There is no consideration involved when becoming an agent. An insurance agent needs to possess the requisite qualification stipulated by the insurance regulatory authority. A firm, company or an individual can continue their agency so long as all partners and directors are of sound mind, and is not involved in a criminal breach of trust, forgery, fraud , dishonesty, misrepresentation or violation of code of conduct.
Brokers: Brokers canvass insurance business and also negotiate terms if necessary to meet the requirements of the proposer. Brokers have to register themselves with the insurance regulatory authority. Brokers are expected to possess a high standard of professional skill and conduct. They are liable for damages to the insurer.
Both agents and brokers are remunerated by way of commission paid by the insurer. They do not charge the client.
Banks: Banks as insurance intermediaries have become popular in USA and in European countries like France, Holland, Belgium and Spain and Asian countries like China and India.
Direct business: Direct business through the company's website and online portal has also become predominant.
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