Why Insurance Brokers?
Risk is integral part of Businesses & Individual life. One can avoid it; retain it or transfer it to someone else. Avoidance of Risk is self-explanatory. Act of doing Business is in itself retaining risk & getting rewarded (ROI) for the same. Some risk though, can’t be avoided or retained hence needs to be transferred to someone else (Insurance Companies) against a payment (premium). Having said that it is imperative that the cost of risk mitigation or transfer should be less than the consequence of inaction. In other words "Gain should be in excess of the pain".
Legality or Positioning.
Insurance is a contract, as per contact Act, 1872, hence a legal document. While entering into this contract, you have an adverse event-causing loss in mind which may or not happen. We at BimaGenie™ Insurance Brokers, take it one step further and define adverse event as "claim raised for the loss but rejected by the insurer and the decision to take legal remedies against insurer". If you keep that in mind while entering into the contract, there would be no disputes at the time of claim settlement. This would require you to have a clarity about the wordings of the contract, its meanings, its implications and being inline with it. This can be done internally if your enterprise have a risk manager or insurance dept. with insurance qualified resources or you can outsources it to an insurance broker. It would be interesting to note that the interest of the insurance company is well protected as the contract is prepared by them, and is further protected by their development officer, branch employees, agents; be it individuals or banks, who deal with you, and are at the position of dominance with regard to the subject of insurance, when compared to you.
Who represents your interest while entering into this contract? To create a level playing field on both sides of the contract IRDA issued license to Insurance Brokers. An insurance broker represents your interest at the time of entering into the contract, has the exposure and subject knowledge and has the ability to access solution from different insurance carriers and doesn't charge you for the service if the your risk is placed through them.
