Insurance Agent: Functions & Qualifications.
Insurance Agent:
A person licence by a state and generally employed by an insurance company to sell insurance policies on the company's behalf. The agent general receives a commission for this service. He/She attend to extract the maximum value for the insurance company in all his/her dealings. An insurance agent should not be confused with an insurance broker or an insurance underwriter.
An agent is a person who represent and insurance firm and sells insurance policies on its behalf.
Characteristics of an Agent:-
The Characteristics of an Insurance Agent are as follows:-
1. Entrepreneurial Mindset : Being an insurance agent has a big similarity with owning a business in such a way that the income is not fixed on a certain rate. Should the agent decide to exert more effort, he can increase his commissions but if he becomes too complacent, he won't get enough sales and consequently, not earn enough commissions.
2. Good Speaker: In offering insurance plans, a sales agent needs to make people realize the need for their product. Simply narrating the benefits of insurance wouldn't help. The agent should be able to deliver the explanation in convincing way.
3. Intelligent: This trait is necessary, especially for insurance plans that are more complicated. For this reason, it is always required for an insurance agent to at least, have a bachelor's degree.
4. Good listener: The agent should be able to discern what a consumer wants or needs and be able to provide the product that will satisfy the consumer.
5. Available in different time schedules: Most of the consumers are income earners who have a stable job or managing a business. For this reason, they would always want to meet with an insurance agent after office for business hours.
6. Persistent: There are a couple of clients, especially those who are busy with their job or business, you just needs to be reminded or worse waited about getting an insurance that will be beneficial to them. And for these clients, calling them for a reminder about the insurance plan that the sales agent is offering can make a difference.
7. Outgoing: An agent needs to have as much connections as possible and it would help a lot if he is always willing to go out and mingle with different sets of people where he can meet new acquaintances and potential clients.
Functions of An Agent:
1. The insurance agent helps in promoting and selling of insurance products and services to its customers.
2. Giving sound financial advisory services and customer support to the clients.
3. Needs to deal with not only individuals but their families and corporate businesses too.
4. Promotion of insurance brands need to our carefully drone road map.
5. Well planned strategies and plans needs to be chalked out.
6. Public-Relation[PR] building exercise should be given significant importance.
7. Business development tactics need to be pursued aggressively.
8. Needs to have good relationship including good rapport with his/her existing and prospective clients.
Difference between an Agent & Servant:
1. Authority to create contractual relationship: Apart from acting on behalf of his/her principal, an agent has the authority to create contractual relations between the principal and third party. Servant ordinarily, has no such authority.
2. Control and supervision: A servant is bound to work under direct control and supervision of his employer. A 'principal' direct the agent as to what is to be done, but master employer of a servant has not only has that right, but also has the right to direct how it is to be done.
3. Remuneration: The mode of remuneration is usually different. Remuneration for a servant is paid by way of salary or wages, study of origins of life because where is an agent generally gets is remuneration in terms of commission calculator on the basis of the amount of business transacted.
4. Duty assignment: A servant in certain cases to some extent may be assigned the duties of an agent, and may act as one. For example, the secretary of a company is regarded as a servant of the company, but in respect of the matters that come under his/her domain he/she becomes an agent in their dealings with third persons. An agent as such never occupies the position of a servant because whenever he acts, he acts on behalf of his principal and binds him/her(principal) to third parties.
5. Liability: A principal is liable on contract made by is Agent within scope of authority. But a master is answerable for any wrongful act of his servant if it is committed in the course of the servant's employment.
Insurance agent cannot perform following functions:
1) Recover of Amount.
2) Give Rebate or commission for insurance.
3) Accept of any risk for insured.
4) Give Advertisement in newspaper.
5) Interfere in the functions of other agents.
6) Working without license or with an expired license.
Qualification of Insurance Agent:
According to Insurance Act and Insurance Agents Regulations, 2000 the following qualifications must be to an Insurance Agent:-
1) If he/she has completed 18 years of age.
2) He is civilian of India.
3) He should be if sound mind.
4) He was not defaulter by court.
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