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What
is the logic of insurance?
It
is a system by which the losses suffered by a few are spread over
many, exposed to similar risks. Insurance is a protection against
financial loss arising on the happening of an unexpected event.
Insurance companies collect premiums to provide for this protection.
A loss is paid out of the premiums collected from the insuring
public and the Insurance Companies act as trustees to the amount
collected.
What
is the difference between Agent and a Broker?
Agent
is the representative of Insurance Company whereas broker is the
representative of the consumer or policyholder.
What are Insurance
Brokerage houses?
World
over insurance brokerage houses are large, sometimes even larger
than the insurance companies themselves. They provide reinsurance
to insurance companies. In many markets, brokers provide non-life
insurance as well as group life and group mortgage insurance.
In
countries like Japan, the broker is not empowered to conclude
contracts, accept representations, and to receive insurance premiums.
In such cases minimum capital requirements and solvency margins
are not needed.
In
general an insurance broker would provide the following services:
Pre sales and after sales service to the customers.
Provisions
of relevant information to the underwriters to assess the risk
and decide the premium.
Design covers that meet the client requirements.
Recommend risk improvement and loss minimisation measures
Provide risk management and insurance education
Collection of Premiums
What is reinsurance?
The
very fundamental principle of spreading of the risk is actually
practiced by the insurance companies by reinsuring the risks that
they have insured.
What
is underwriting?
Underwriting
of a risk involves 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.
Why
is insurance cover essential?
Insurance
cover is essential to safe gaurd your financial assets such as
your car, home and contents, against the possible risk of accidental
damage and sudden loss.
What
important information do I need to tell State as my insurer?
Please
answer all our questions honestly and tell us about anything else
that could impact on whether we insure you and your policy terms.
You also need to let us know about any changes that may affect
your policies during the time they’re current.
Examples
of things you need to tell us about include:criminal convictions
(all insurances)
These
are just a few examples of information that we need, so if you
aren’t sure please just ask.
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