When the concept of insurance came about, the only way to get it done was by an insurance agent. But today there are other ways to go about the same. If you pay attention, and even ask around in your friends’ circle, the most popular manner to compare, select and renew two wheeler insurance is, of course, through online brokers such as the market changing Coverfox. And there is a very good reason for that. But don’t take our word for it. Check the different ways to renew two wheeler insurance and decide for yourself how you want to go about it.
In order to support the act of insurance distribution, when the concept of insurance began, either you approached the service provider directly or, in the absence of that opportunity, via an insurance agent. Later on the agent, initially loyal to a singular service provider, became an agent of multiple insurers and thus the notion of an insurance broker was born.
By then an insurance broker, the same individual who would sell insurance policies of a single insurer began to study and understand and thus sell policies of very many insurers. We are hoping they did, or do, it so that they could find the most appropriate policy for their clients from the entire bouquet at their fingertip.
There is a reason to understand the evolution of the insurance distribution landscape and thus make your selection of which manner to renew your two wheeler insurance by, wisely. So take the time to understand the difference between an insurance agent and a broker, and some other types as well.
An Insurance Agent
An insurance agent is a person who represents the interest of the bike insurance company. As per the law, an agent can honestly represent only one insurance company at a given time. Agents are trained and licensed to understand the exact nature of the financial needs of customers and sell that, or those, product/s that best suits the customers’ interest from the insurance service provider to renew two wheeler bike insurance.
Since the customer is very often solely dependent on the advice of the insurance agent s/he can be held accountable for misguiding the client and mis-selling inappropriate insurance products, but only through the insurance company.
What this means is that if you are gravely unsatisfied with the service and the product, you can haul the insurance company, but not the agent, to court or, in the event the case has to be resolved in India, to Insurance Regulatory and Development Authority (IRDA) for wrong advice. The insurance company in turn will penalize the agent by cancelling her or his license, and stopping her or his functioning as an agent in the future.
So the agent will be punished, albeit indirectly.
An Insurance Broker
A broker is a licensed and trained individual but with a different directive. The job of the broker is to represent the client, not the insurance companies, and thus they have a responsibility, bound by law, towards the customer.
What a broker is supposed to do is to understand the customer’s needs and study various schemes by as many insurers as required to help the customer find the best two wheeler insurance products for their needs.
And yes, you can drag an insurance broker directly to the court because a broker is your, the customer’s, agent. You can straight away approach the IRDA to cancel the broker’s license if you think they are guilty and the court agrees with you.
The same divide comes under a differently named classification. Take a look here below.
Captive Agents and Brokers
Agents by rule should work with only a specific insurance company, and as part of their business agreement with the insurer, they can offer only the latter’s insurance products. That is being captive to one insurance company.
Remember, the insurance service provider can also ask the captive broker to sell other insurance products from their stable other than the ones pertaining to renewing two wheeler insurance.
Independent Agents and Brokers
It is the responsibility of independent agents and brokers to offer products from a variety of two wheeler insurance companies. It is their duty to carefully review multiple options to find a two wheeler insurance renewal policy and premium rate that’s just perfect for you. This is thanks to the simple fact that insurance rates, options and plans can vary across the market.
The independent brokers have one objective and one objective only. That is to best serve the interests of the customers. In that regard, they are also empowered to put together a customized two-wheeler renewal insurance plan as and when they deem necessary.
Which Option is the Best? In Other Words, the Most Popular
From all the theories explained above it is already very clear to most of you that contacting an independent broker is the best way to protect your two-wheeler insurance renewal interests. It is not the question of only saving some money when you want to renew two-wheeler insurance, but also to get the best possible coverage in the policy that you finally purchase.
Online is the Way to Go
Calculating the premium is one of the most important reasons why all this while you relied on your friendly neighborhood insurance agent. Many factors determine the bike insurance renewal premium rates, such as model, make, manufacturing year, engine size, etc.
Life style conditions such as being a lady or a man, being married or not, living in a tier II city or a metro, all these also impact the premium rate when you go to renew two wheeler insurance.
So More Confusion Headed Your Way, Right?
Wrong! What if we told you that Coverfox will empower you with a two-wheeler insurance calculator so comprehensive that you can work out what you need to pay when renewing your two wheeler insurance—easily, simply, transparently? That you would be able to do what you were unable to figure out all these years when your insurance agent was working out.
Coverfox is an online broker that chooses to empower you with the right of choice when you need to renew the two wheeler insurance plan/s. Test the renew two wheeler insurance calculator on our website right away, and see if what our customers say is true. That Coverfox is the best way to renew your two wheeler insurance. Let us know if you agree.