1. Every insurance broker shall follow recognised standards of professional conduct and discharge their functions in the interest of the clients or policyholders.
2. Conduct in matters relating to client’s relationship— Every insurance broker shall:
- conduct its dealings with clients with utmost good faith and integrity at all times;
- act with care and diligence
- ensure that the client understands their relationship with the insurance broker and on whose behalf the insurance broker is acting;
- 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;
- take appropriate steps to maintain the security of confidential documents in their possession;
- hold specific authority of client to develop terms;
- understand the type of client it is dealing with and the extent of the client’s awareness of risk and insurance;
- 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;
- 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;
- avoid conflict of interest.
- Obtain necessary documents required under KYC norms and share with insurance company.
- Assist the client in opening e-insurance account.