CODE OF CONDUCT Insurance Brokers
- Every insurance broker shall follow recognised standards of professional
conduct and discharge their functions in the interest of the clients or
policyholders. - Conduct in matters relating to clients relationship – Every insurance broker shall:
(a) Conduct its dealings with clients with utmost good faith and integrity at all
times;
(b) act with care and diligence;
(c) ensure that the client understands their relationship with the insurance broker
and on whose behalf the insurance broker is acting;
(d) treat all information supplied by the prospective clients as completely
confidential to themselves and to the insurer(s) to which the business is being
offered;
(e) take appropriate steps to maintain the security of confidential documents in
their possession;
(f) hold specific authority of client to develop terms;
(g) Understand the type of client it is dealing with and the extent of the client’s
awareness of risk and insurance;
(h) obtain written mandate from client to represent the client to the insurer and
communicate the grant of a cover to the client after effecting insurance. Unless
it is specifically mentioned otherwise, the written mandate obtained from the
client shall be valid for a period of one year if the mandate has no validity period
mentioned. However, in the case of pre-underwritten policies or retail/individual
policies there is no requirement of obtaining mandate from the client;
(i) obtain written mandate from client to represent the client to the insurer/
reinsurer; and confirm cover to the insurer after effecting re-insurance, and submit
relevant reinsurance acceptance and placement slips;
(j) avoid conflict of interest.
(k) Obtain necessary documents required under KYC norms and share with
insurance company.
(l) Assist the client in opening e-insurance account.