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As per IRDA (Insurance Brokers) Regulations, 2017, a composite broker shall carry out any one or more of the functions mentioned as under:
As a Direct Broker —
- Obtaining detailed information of the client’s business and risk management philosophy.
- Familiarizing himself with the client’s business and underwriting information so that this can be explained to an insurer and others.
- Rendering advice on appropriate insurance cover and terms.
- Maintaining detailed knowledge of available insurance markets, as may be applicable.
- Submitting quotation received from insurer/s for consideration of a client.
- Providing requisite underwriting information as required by an insurer in assessing the risk to decide pricing terms and conditions for cover.
- Acting promptly on instructions from a client and providing him written acknowledgements and progress reports.
- Assisting clients in paying premium under section 64VB of Insurance Act, 1938 (4 of 1938).
- Providing services related to insurance consultancy and risk management.
- Assisting in the negotiation of the claims.
- Maintaining proper records of claims.
As a Re-insurance Broker —
- Familiarizing himself with the client’s business and risk retention philosophy.
- Maintaining clear records of the insurer’s business to assist the reinsurer(s) or others.
- Rendering advice based on technical data on the reinsurance covers available in the international insurance and the reinsurance markets.
- Maintaining a database of available reinsurance markets, including solvency ratings of individual reinsurers.
- Rendering consultancy and risk management services for reinsurance.
- Selecting and recommending a reinsurer or a group of reinsurers.
- Negotiating with a reinsurer on the client’s behalf.
- Assisting in case of commutation of reinsurance contracts placed with them.
- Acting promptly on instructions from a client and providing it written acknowledgements and progress reports.
- Collecting and remitting premiums and claims within such time as agreed upon.
- Assisting in the negotiation and settlement of claims.
- Maintaining proper records of claims.
- Exercising due care and diligence at the time of selection of reinsurers and international insurance brokers having regard to their respective security rating and establishing respective responsibilities at the time of engaging their services.
- Creation of market capacity and facility for new, stressed, emerging and existing business and asset class for and from both direct insurers and reinsurers.
- Render preliminary loss advice (PLA) within reasonable time.
- Given the nature of business, separate norms need to be followed for Inward and Outward business
