Intermediaries in General Insurance
An agent acts for the insurer, a broker acts for the client. Most of the rules follow from that.
An intermediary is anyone who stands between the insurer and the customer and is paid for it: the agent who renews a shopkeeper's policy in Indore, the bank branch that sells home cover with a loan, the broker who places a Pune contractor's site cover with three insurers. Each one must be registered with IRDAI before it can act.
The question IC-11 keeps asking is whose side each one is on. An agent represents the insurer. A broker represents the client. That single difference explains most of the rules below.
You save ₹300
- Full 100-question mocks
- Chapter-wise practice
- Section-wise sets
One payment, no subscription
Who Does What
Individual agent
Acts for
The insurer that appointed the agent
Typical non-life role
Retail motor, health, home and shop policies; collects premium and services renewals
Corporate agent
Acts for
The insurers it has arrangements with
Typical non-life role
Banks (bancassurance), NBFCs, dealers and other companies selling to their own customers
Direct broker
Acts for
The client
Typical non-life role
Assesses the client's risks, compares insurers, negotiates terms and helps with claims
Reinsurance broker
Acts for
The ceding insurer (its client)
Typical non-life role
Places reinsurance with Indian and overseas reinsurers
Composite broker
Acts for
The client
Typical non-life role
Does both direct and reinsurance broking
Insurance marketing firm (IMF)
Acts for
The insurers it ties up with
Typical non-life role
Sells and services insurance and some other financial products through its staff
Web aggregator
Acts for
Neither side in the sale
Typical non-life role
Shows comparisons of products online and passes leads to insurers
Third party administrator (TPA)
Acts for
The insurer
Typical non-life role
Processes health claims and cashless hospitalisation for insurers
| Intermediary | Acts for | Typical non-life role |
|---|---|---|
| Individual agent | The insurer that appointed the agent | Retail motor, health, home and shop policies; collects premium and services renewals |
| Corporate agent | The insurers it has arrangements with | Banks (bancassurance), NBFCs, dealers and other companies selling to their own customers |
| Direct broker | The client | Assesses the client's risks, compares insurers, negotiates terms and helps with claims |
| Reinsurance broker | The ceding insurer (its client) | Places reinsurance with Indian and overseas reinsurers |
| Composite broker | The client | Does both direct and reinsurance broking |
| Insurance marketing firm (IMF) | The insurers it ties up with | Sells and services insurance and some other financial products through its staff |
| Web aggregator | Neither side in the sale | Shows comparisons of products online and passes leads to insurers |
| Third party administrator (TPA) | The insurer | Processes health claims and cashless hospitalisation for insurers |
Key Terms
- Insurance agent
- The Insurance Act defines an agent as a person paid commission or other remuneration for soliciting or procuring insurance business, including renewals. The agent is the insurer's representative.
- Insurance intermediary
- Since the 2025 amendment to the Act took effect on 5 February 2026, the definition lists brokers, reinsurance brokers, insurance consultants, corporate agents, TPAs, surveyors and loss assessors, managing general agents, insurance repositories and any other entity IRDAI notifies.
- Broker categories
- IRDAI's broker regulations register a direct broker (life, general, or both), a reinsurance broker or a composite broker. Only a reinsurance or composite broker may place reinsurance.
- Insurance Bank Account
- A separate bank account in which a broker must hold insurance money it receives (premium on the way to the insurer, or claim money on the way to the client) instead of mixing it with its own funds.
- Surveyor and loss assessor
- Also an intermediary, but one who assesses losses rather than sells cover. See IC-01's surveyors page for the licensing and survey rules.
Quick practice on risk inspection and hazards. No signup.
Rules That Changed Recently
The courseware (Revised Edition 2023) describes licences renewed every three years. The law has since moved on.
- check_circleNo one may act as an insurance intermediary without a certificate of registration from IRDAI (section 42D of the Act, as amended in 2025).
- check_circleRegistration no longer lapses after three years. It stays in force as long as the annual fee is paid, until IRDAI suspends or cancels it. For corporate agents, brokers, IMFs and web aggregators the annual fee is the higher of ₹10,000 or 0.04% of the previous year's commission and receipts.
- check_circleCorporate agents, brokers, IMFs and web aggregators registered under the old three-year regime must apply for a fresh certificate before 31 January 2027, per IRDAI's FAQs on the 2026 amendment regulations.
- check_circleAn agent who collects premium must pass it to the insurer in full, without deducting commission, within 24 hours excluding bank and postal holidays (section 64VB(4)). Any refund goes straight to the policyholder, never to the agent's account.
How IC-11 Tests This
Expect definitions and role matching: what a composite broker does, who licenses brokers (IRDAI), what TPAs do (health claims), whether a bank can be an intermediary (yes, as a corporate agent or broker). The trap is the agency relationship: candidates say a broker works for the insurer because the insurer pays its remuneration, but the broker is appointed by and acts for the client. Candidates also treat a web aggregator as a seller; it compares and refers.
FAQs
What is the difference between an insurance agent and a broker?expand_more
An agent represents one or more insurers and sells their products. A broker represents the client, compares insurers in the market and arranges the cover that suits the client. Both are registered with IRDAI.
What is a composite broker?expand_more
A broker registered to do both direct broking (placing a client's insurance with insurers) and reinsurance broking (placing insurers' risks with reinsurers).
What is the role of a TPA in general insurance?expand_more
A third party administrator processes health claims for insurers, including cashless hospitalisation, under IRDAI's TPA regulations. It acts for the insurer, not the policyholder.
Is a bank an insurance intermediary?expand_more
Yes, when it is registered as a corporate agent (bancassurance) or as a broker. It then sells insurance to its own customers, such as fire cover on a house bought with a home loan.
Next steps
- Non-Life Insurersarrow_forward
- Section 64VBarrow_forward
- IC-01: Surveyors and loss assessorsarrow_forward
Full-length IC-11 practice, timed to 2 hours and scored.