What does an insurance broker do, and how is a broker different from an agent?
A broker works for you, not for one insurer. Learn what an IRDAI-licensed broker does, how it differs from an agent and how to check a licence.
By TommyAndFurry advisory teamReviewed by [REVIEWER NAME, QUALIFICATION]Updated 3 min read
In short
- An insurance broker is licensed by IRDAI to act for the customer, and can compare and place policies with many insurers.
- An insurance agent is appointed by an insurer to sell that insurer's products, within limits set by IRDAI.
- A broker helps you compare plans, complete the paperwork, renew on time and follow up with the insurer when you claim.
- The insurer, not the broker, issues the policy and pays claims; you can check a broker's licence on the IRDAI website.
What an insurance broker is
An insurance broker is a firm licensed by the Insurance Regulatory and Development Authority of India (IRDAI) to arrange insurance on behalf of customers. Because a broker represents you rather than one insurer, it can compare plans from many insurers and recommend the one that fits your needs.
TommyAndFurry Insurance is a brand of Novacred Insurance Broking Private Limited, which holds IRDAI Licence No. 1135 as a Direct Broker (Life & General). A direct broker deals with customers and insurers directly, for both life and general insurance.
Broker vs agent
| Insurance broker | Insurance agent | |
|---|---|---|
| Acts for | The customer | The insurer that appointed the agent |
| Products offered | Plans from many insurers | Plans from the insurer or insurers the agent represents |
| Licensed or appointed by | Licensed by IRDAI | Appointed by an insurer under IRDAI rules |
| Help at claim time | Follows up with the insurer for you | Varies by agent and insurer |
What a broker does for you
- Understands what you need: the people, vehicles, property or business you want to protect.
- Compares plans: cover, exclusions, add-ons and premiums from several insurers, side by side.
- Handles the paperwork: the proposal form, KYC and payment, so the insurer can issue your policy.
- Keeps your cover running: renewal reminders and changes to your policy, called endorsements.
- Helps when you claim: guides you through the documents and follows up with the insurer or TPA.
How brokers are paid
Brokers are paid by insurers, within limits set by IRDAI. Before you buy, ask your broker about anything you are unsure of.
How to check a broker is genuine
- Look for the IRDAI licence number, the licence category and its validity on the broker's website and documents.
- Check the name and licence number against the list of licensed brokers on the IRDAI website.
- Pay premiums only through the insurer's or broker's official payment channels.
- Never share OTPs, card PINs or passwords with anyone who calls you.
You can see the insurers we work with on our Partners page, or get a quote to compare plans.
Questions readers ask
Is it safe to buy insurance through a broker?
Yes, when the broker is licensed by IRDAI. Your policy is issued by the insurer, just as it would be if you bought it directly.
Can a broker help me with a claim on a policy I already have?
A broker can guide you, but it follows up formally with the insurer on policies placed through it. For other policies, contact the insurer or the intermediary you bought from.
What is the difference between a direct broker and a composite broker?
A direct broker arranges insurance directly between customers and insurers. A composite broker is also licensed to arrange reinsurance, which is insurance bought by insurers.
This guide is general information, not advice for your situation. Cover, exclusions and claim terms differ by insurer and plan, so always read the policy wording before you buy. Insurance is the subject matter of solicitation. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale.
