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CS Professional · Banking and Insurance - Laws and Practice · Professional Opportunities

Meera Joshi, a company secretary in practice, wants to help a Mumbai manufacturing firm place its fire and burglary cover with insurers on a fee basis, without being tied to any single insurer and while advising the firm on insurer choice. Which type of IRDAI-regulated intermediary best matches this role?

An insurance broker fits this role. A broker acts on behalf of the client, advises on risk and cover, and can place business with multiple insurers, unlike agents tied to insurers, surveyors who assess losses, or TPAs who handle health claims.

  1. AInsurance broker, who acts for the client and can place business with multiple insurersCorrect
  2. BCorporate agent tied to a single insurer for each class of business
  3. CSurveyor and loss assessor appointed by the insurer after a loss
  4. DThird party administrator processing health claims for insurers

Explanation

A licensed insurance broker represents the client (the insured), advises on insurance needs and approaches several insurers for the best terms. A tied agent works for insurers, a surveyor assesses losses after they occur, and a TPA services health claims. None of those fits an independent placement and advisory role.

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