RIGHTS AND DUTIES OF INSURANCE AGENTS Despite the extensive use of direct-sales methods like

2800 WordsApr 23, 201912 Pages
RIGHTS AND DUTIES OF INSURANCE AGENTS Despite the extensive use of direct-sales methods like internet, mail, television, telemarketing, etc., most insurance is still sold through intermediaries like insurance agents and brokers. This, coupled with the possibilities of these intermediaries being sued by insurers, insured, applicants for insurance and even third parties with whom they have no obvious relationship, it become absolutely imperative for us to clearly delineate the rights and duties of these intermediaries, and the entities to which such rights or duties are owed. An intermediary, at all points of time, is an agent of either or both the parties to the insurance purchase. The party or parties for whom the intermediary acts as an…show more content…
From these interactions, the rights of these intermediaries are concretized. In this paper, the researcher has attempted to answer these convoluted questions. DUTIES OF INSURANCE AGENTS Insurance agents are persons who are licensed by the IRDA to solicit and procure insurance business including business relating to continuance, renewal or revival of policies of insurance. They must be registered under the IRDA (Licensing of Individual Agents) Regulations, 2000 and the IRDA (Licensing of Corporate Agents) Regulations, 2002, as the case may be. These regulations themselves list down duties of insurance agents under the ‘Code of Conduct’, featuring at Regulations 8 and 9 of the Individual Agents Regulations and the Corporate Agents Regulations respectively. As the duties are lucidly mentioned in the Regulations, the researcher has not delved into them specifically and has instead, classified the duties as owed to the insured, the insurer and applicants for insurance. Duties towards the Insured An agent who agrees to procure insurance coverage for an individual has a duty to do so with reasonable care and diligence. In addition to this, the agent is also under an obligation to exercise his authority with fidelity and skill, and to respect his fiduciary duty towards the insurer. In the event of a failure to do so, the insured can sue the agent for damage resulting from such failure, either for breach of contract or negligent default in

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