Function of Insurance Agent :
Insurance Agent
Evaluation of the success of an insurer's insurance business depends on the fact that the popularity and credibility of the insurance company in the society. Which insurance company is selling which insurance products in what quantity and for how long? At present, the insurance company is providing the facility of many insurance products to the insured through many plans, along with the edited customers of the insurance company being scattered at remote places. In such a situation the insurer alone is unable to establish contact with the customers. As a result, an intermediary is required to establish a relationship between the insurer and the insured. The person acting as an intermediary between the insurer and the insured is called an insurance agent. There is a difference between an insurance agent and a general agent. Therefore, it would be appropriate for us to study the agent first.
Meaning of Agent
In India, the appointment of an agent, his authority and the regulation of the relationship between the principal and the agent, is done according to the agency law. The provisions of the Agency Law (Law) are given in section 182 to 238 of the Indian Contract Act 1872. According to the provisions of the agency, agency is the name of the relationship between the agent and the principal.
According to section 182 an agent is a person appointed by any other person to represent himself in the performance of any of his acts or dealings with any other or third party.
The person or person who acts or represents the agent is called principal or employer or owner. (Section 182)
Thus it is clear that an agent is a person appointed by the principal to establish contractual relations of his (principal) with third parties. Thus the agent acts as an intermediary between the principal and third parties. The agent performs all the functions of his master (pradhan) only within the limits of the express or implied rights and instructions given by the owner.
Who can appoint an agent?
The agent is appointed by the principal but the principal can only be a person who has the capacity to enter into a contract. Therefore, the following persons can appoint an agent
(1) all busy people
(2) All persons of sound mind
(3) All persons who have not been disqualified by any law of the land.
In addition, the agent may be appointed by any person authorized by law. For this reason, the agent can also be appointed by the following person
(1) by any corporation or company.
(2) Appointment by a natural guardian or a court appointed guardian
(3) Appointment of agents jointly by several heads
Who can become an agent?
According to section 184, any person can become an agent. Therefore, any person, whether he has the ability to contract or not, all agents can be appointed. Therefore, minors, persons of unsound mind can also be appointed as agents. For this reason, it is sufficient to have an arrangement for setting up the agency. But appointing a minor or a person of unsound mind as an agent is a risky act. Doing so can have the following consequences
(1) Such an agent is not liable to the principal for his unauthorized and wrongful acts.
(2) The principal is personally liable to the third party for the acts done by such agent because he has acted on behalf of the principal.
Difference Between Agent and Servant According to the High Court of India, there is a difference between agent and servant. The remuneration of the agent is in the form of commission or fee. Whereas servant remuneration is in the form of salary. An agent can never be a servant, whereas a servant can be an agent at times. The agent enters into a contractual relationship with a third party on behalf of the employer but the servant does not.
An insurance agent is an important means of contact, through which the relationship between the insured and the insurer is established, there are workers of insurance companies who search for lives (insured). encourage you to get insurance. Prepare them and take them to the corporation, and provide insurance services, without the insurance agent, the work of the insurance companies comes to a standstill.
In the general sense, an insurance agent is a representative licensed by the insurer who agrees to perform the business of renewing or operating the original insurance business in exchange for commission or other operating remuneration.
Characteristics of Insurance Agent
1. The insurer (insurance company) is its employer (owner).
2. The insurance agent has to obtain a license under the rules made under section 42 of the Insurance Act.
3. The insurance agent has to make efforts to get the insurance business.
4. The consideration is paid to the insurance agent on commission or other basis.
5. The insurance agent cannot pay commission or remuneration to any other person for carrying on the insurance business. This act is an illegal act.
life insurance qualifications
(Qualification of Insurance Agent)
As per the Insurance Act and the Insurance Agents Regulations 2000, those applying to obtain the license of an insurance agent The person should have the following qualifications
(1) he is a citizen of India
(2) The applicant must be at least 18 years of age, that is, an adult.
(3) He should be of sound mind.
(4) He has not been found guilty by a competent court of abetting the offense of embezzlement, fraud, forgery or of any such offense punishable, but if five years have elapsed from the completion of the sentence of any such offence, he shall be eligible for this category. does not come
insurance agent job
Function of Insurance Agent
An agent, whether he is doing business in the field of life insurance or general insurance, has to do the following things for his employer (insurer)
(1) Contact with the proposers -
Under this work, the agent establishes contact with such people who have either not insured at all or who are willing to get re-insured, for this he gives them new information related to insurance, solves doubts. Explains the importance of various schemes.
(2) To encourage proponents -
The agent persuades them to get insurance by explaining the plan according to their points such as the information of the plan and the need of the proposer in an effective manner. For this he also has to contact the proposer again and again.
(3) Fulfillment of offer letter:
The agent gives the offer letter of insurance to the proposer and helps to complete it correctly by explaining every point of it, which things are not understood by the proposer, the agent has to explain clearly.
(4) Preparing the necessary forms:
The proposer has to give the necessary forms like birth certificate, medical certificate along with the proposal. The agent also helps him in its arrangement.
(5) Submitting the offer letter after receiving the premium.
(6) Informing the insured or his heirs about the receipt of payments to the insured.
(7) To comply with the things/instructions notified by the Insurance Authority.
(8) Advising the proposers regarding the nomination, handing or renewal of the letter of insurance.
(9) To assist in claims payment, loss and destruction of insurance papers etc.
(10) To execute the development works, programs of Life Insurance Corporation, General Insurance Corporation or Insurer.
Prohibitory duties of an insurance agent An insurance agent cannot do the following:
(1) To recover any sum of money for the insurer or the corporation.
(2) To provide commission or discount for insurance.
(3) Acceptance of any risk on the part of the insurer.
Cannot print or distribute any kind of advertisement or magazine without the permission of the corporation or the insurer.
Interfering with the affairs of any other insurance agent or luring, luring, etc., his proposers.
(6) Cannot function without a valid license obtained by the insurer or after the expiry of the period of the license.
(7) To proceed in the territory of any other insurer.