Frequently Asked Questions
What are the different ways to buy general Insurance?
Through an agent, broker or any other such intermediary.
Anyone using the title broker is usually independent and generally aims to find
you the best deal on the market.
Other intermediaries might just quote the best deal from a fairly small panel of
insurance companies or represent a single insurance company.
Alternatively, you can approach the insurance company directly.
What is the difference between an Agent and a Broker?
An agent is the representative of Insurance Company whereas a broker is the representative
of the consumer or the policyholder.
What services does a broker provide?
Provide pre sales and after sales service to customers
Provide relevant information to the underwriters for risk assessment and to ascertain
Structure product and design covers that meet the specific requirements of customers
Recommend risk improvement and loss minimization measures
Provide a collection of Premiums
Provide risk management and insurance education.
What factors affect the cost of Insurance?
The factors that can affect the cost of insurance include:
The likelihood of a loss occurring
Purchase of a large amount of coverage (that is, if the item you are insuring is
What is Underwriting?
Underwriting of a risk involves the consideration of material facts on the basis
of which a decision will be taken whether to accept the risk and if so, at what
rate of premium.
What is Reinsurance?
Insurance companies practice the fundamental principle of spreading their risk too.
Further reinsuring the risks that the insurance company has insured does this.
Who do you file your claim with?
You file a claim with the insurance company that issued your policy. In case of
policies received on account of your employment you may have to file claims through
the HR administrator.
What are the things to be taken care of while filing a claim?
Be thorough and exact when reporting damage and always tell the truth. Withholding
vital information or exaggerating the facts can, not only lessen your chances of
the claim being settled to your satisfaction, but also may be considered a crime.(Insurance
fraud costs consumers crores of rupees a year)
What happens after a claim has been filed?
Once your claim has been filed, the insurance company will assign a surveyor.
He or she is charged with investigating your claim and then making a recommendation
to the insurance company.
The recommendation can be to accept the claim and pay the full amount requested,
accept part of the claim and make partial payment, or refuse the claim and make
The insurance company will then make a decision regarding your claim and notify
you of its final decision. The amount of compensation offered can vary according
to the surveyor’s analysis.
What impact does a deductible have while settling a claim?
If you have no deductible, the company will pay 100% on a covered loss.
To understand how a deductible works, consider the following: If the deductible
on your motor insurance is Rs. 1000 it means you agree to pay this amount first,
and your insurance company will pay for damages exceeding this deductible.
By increasing your deductible from Rs. 1000 to Rs. 2500 or even Rs. 3500 this decreases
the insurance company’s risk. This could mean a savings in your premium.
Who keeps an eye on the Insurance companies?
The Insurance Regulatory and Development Authority controls insurance regulations
in India. In addition to approving rates, the regulatory body is involved in all
insurance matters on behalf of private citizens and businesses.
It issues operating licenses to insurers, brokers & agents