Frequently Asked Questions (FAQ's)
WHAT DOES INSURANCE MEAN?
It is a method in which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a well-thought out cover against financial loss arising on the happening of an unanticipated occurrence.
WHY IS INSURANCE NEEDED?
Insurance is one way of protecting yourself against the risk of unexpected financial losses. It does not remove the risk, but it can partially compensate for losses incurred, through the payment of premiums, you transfer the cost of a major loss from you to an insurance company.
Insurance operates on the principle of shared risk. A group of people pays in specified premiums to a common pool. Funds from the pool are used to cover individual losses. The amount of premium each individual pays is based on the frequency of past losses by the group, plus the costs of administration and selling, divided by the number in the group. Insurance is the foundation of financial security for you and your family. It protects your financial resources against the uncertainties of life so you can plan for the future. Choosing an insurance product is an important decision, but it can be complicated. This is where the role of experts, i.e. insurance brokers comes into play.
WHAT IS GENERAL INSURANCE?
General Insurance covers All Risks other than Life, like Motor Vehicles, Industries, Transit of Goods, Personal accident, Aviation, Credit Risk, and like risks.
WHAT IS LIFE INSURANCE?
Life Insurance is a contract between Insurer and Insured (Policy Holder), under which the Insurer pays the designated person a Sum of money, upon the death of Policy holder or other covered events like Critical illness.
WHAT IS HEALTH INSURANCE?
Health Insurance is a type of insurance that covers the Medical expenses, generally upon Hospitalization of Insured person(s).
ABOUT BROKER?
An insurance Broker is an intermediary between Insured and the Insurance Companies. They have knowledge of Insurance Products and policies offered by various Companies. There are five categories of insurance broker which are (i) Direct Broker (Life), (ii) Direct Broker (General), (iii) Direct Broker (Life & General), (iv) Reinsurance Broker and (v) Composite Broker.
WORK OF BROKER?
The main job of an insurance Broker is to assess the Risks that a person/ Company, is exposed to. They assess the risk and obtain best possible cover from various Insurance Companies at optimum price that protects the insured's needs. Upon acceptance of offer by Insured they arrange preparation of Policy documents. In the event of a claim they assist the insured. They also remind insured about renewal of the policy and necessary corrections, whenever necessary.
For any Insurance requirement, correct coverage is of great importance. Insurance brokers are experts in Insurance Protection and they use their expertise in best interests of their customers. They advise their customers about the risks, their exposures and suggest optimum and cost effective solutions. They are independent professionals and act on behalf of their clients.
BENIFIT OF BROKER?
There are many benefits to using insurance brokers, many of which you may not have even thought about-Save money, Get market knowledge, Keep things simple, Professionalism, More choice, Stress-free claims, Impartial advice and most important Long-term relationships.
A Broker would help you in assessing your risk exposure suitably, and would recommend a proper insurance program. They would obtain optimum cover at best possible cost for you/ your business.
A Broker is in the best position to shop the “package” (Having Insurance Spread Over Several Companies) around for you, to get the best deals. Knowing your full needs, your broker may also be able to recommend very cost-efficient ways of covering certain risks, eliminating possible duplication.
HOW DO I CHOOSE A BROKER?
It is Important to deal with an insurance Broker that is member of Insurance Brokers Association of India. This is a professional body that ensures that their members operate within professional code of conduct to protect your interests following best practices.
Ask for referrals and check references, Even if you locate an insurance broker online, ask them to provide client references or testimonials. Determine the coverage you need. An experienced insurance broker will be able to review your information and explain the type of coverage you need and the insurance premium range you expect. Learn more about their specialized experience Ask for personalized advice?
WHAT IS RISK MANAGEMENT?
Brokers suggest to their clients to adopt risk management procedures and systems to reduce their risks, and make savings on their insurance premiums. Risk management is all about taking precautions to reduce the risk of loss – this might include fitting smoke alarms or sprinkler systems, or extra security on windows and doors. In commercial premises, it might involve safer working practices within the factory or more staff training in safety, or even practice fire drills and evacuation procedures. There are financial risk management techniques as well for larger businesses, which are all designed to lower insurance risk exposures and costs.
HOW MUCH OF INSURANCE DO I NEED?
It is pretty imperative to have sufficient amount of coverage for each insurance policy. Even before zeroing in on the Sum Insured as regards any asset or property insurance, the value of the asset based on market value or reinstatement value should be primarily taken into consideration. If the Sum Insured does not meet requirements, the percentage representing the exposed segment of the asset has to be necessarily borne by the insured.
DO I NEED COVER RIGHT NOW?
Life's full of uncertainties. Accidents and mishaps can occur almost any time and anyplace. It is ,therefore essential to recognize the risks faced and insure oneself against these at the earliest possible time. And that time is now! What are the broad elements that get covered under Insurance? Almost anything and everything! Anything that has a potentially financial worth in your life and has a possibility of getting lost, stolen or damaged can get covered under insurance. Property (both movable and fixed), vehicle, cash, household goods, health, dishonesty and also your liability towards others can be covered.
WHAT DOES PREMIUM MEAN?
The amount of money you pay periodically to maintain insurance coverage. To purchase Insurance, Insured must fill up a proposal form because Insurance is typically a contract that needs to be signed between the insured and the insurer. The proposal form is the basis of contract that contains all the relevant information for the preparation of the policy that is a contract document.
WHAT IS UNDERWRITING?
Underwriting refers to the process that a financial service provider uses to assess the process of providing access to their product like insurance to a customer. Depending on the assessment, the risk for insurance contract is accepted and the premium rate is decided upon.
WHAT IS DEDUCTIBLE?
In an insurance policy, the deductible or excess is the portion of any claim that is not covered by the insurance provider. It is normally quoted as a fixed amount and is a part of most policies covering losses to the policyholder. The deductible must be "met", that is, paid by the insured, before the benefits of the policy can apply.
CAN I CHANGE BROKER AT ANY TIME?
Yes, you can change brokers without any risk to your insurance programmed. Policies are normally put in place for twelve months, and it makes sound since to let the policy run for the year unless there are serious reasons for shifting it. However, you can change brokers at any time. A simple letter of appointment is all that brokers need to begin acting on a client's behalf, and your new broker can negotiate a change in insurer also if that is really required. However, if you change midterm, you may incur cancellation charges from the insurer.
WHO IS THE BROKER WORKING FOR?
Insurance brokers are instructed by the client, and at all times, act on the client's behalf. They are not agents of the insurance company. Their independence ensures that the clients benefit from
Convenience: A broker can arrange all the insurance and risk protection you need. Probably only one meeting is necessary to identify your needs, and broker can develop a comprehensive insurance proposal for you.
Knowledge: A broker has a daily and regular interface/contact with many insurance companies, and knows where to obtain the best insurance protection at the best cost.
Choice: A broker deals directly with most insurance companies, and can present your risks in the most effective way. Broker can canvass the market to obtain competitive terms and costs, and then suggest a contract which best fits your needs.
Innovation: We at NOTION INSURANCE are helping our clients to reduce risks through modern risk management procedures and systems, thereby reducing their dependence upon insurance, with considerable cost savings.
Professionalism: All major insurance brokers, including NOTION INSURANCE BROKERS PVT. LTD, are members of Insurance Brokers Association of India (IBAI), and are bound by its Code of Conduct, professional standards and ongoing educational requirements. The IBAI sets standards for their financial security, and has a Code of Conduct, as per IRDA guidelines, covering professional service and expertise.
HOW ARE INSURANCE BROKERS PAID?
By and large you as a Customer are NOT required to make any payment to us for the services that we extend to you. We operate on a commission based revenue model which we get from the Insurance Companies as a percentage of premium for the Services rendered to the Insurance Companies. Your premium outgo remains the same and our involvement in no way affects your cost of Insurance. In some exceptional cases, more particularly in cases of complex insurance programs where additional resources and services are involved a fee is negotiated well in advance. In such circumstances the customers pay us a pre calculated fee for additional service, which would be decided and approved in advance. The same may apply in Claims services also and within the guidelines of the Regulator.
HOW CAN I BE SURE THEY ARE NOT JUST SELLING ME A PRODUCT OFF THE SHELF?
NOTION INSURANCE Brokers wants to develop long-term relationships with their clients so they want to do the right thing by you. We definitely don't want to sell you an unsuitable product, just because it is easy or pays high commission (that is neither being professional nor is it ethical). Our team at NOTION INSURANCE Brokers ensures that you get the product, which is best suited to you and your needs and this may not necessarily be the cheapest available.
Everyone's insurance protection needs are different. Brokers are able to negotiate with insurers to extend or adapt policies to their client's advantage. Brokers are able to tailor protection programmers to your requirements and can often achieve results, which one may not achieve as an individual.
CLAIMS
Broker provides a very useful service in processing insurance claims. An integral part of the broker's service is to lodge claims on your behalf. If required, brokers assist with the completion of all the necessary documentation and coordinating the loss adjuster, the insurance company and the tradesmen necessary to make any repairs. We, at NOTION INSURANCE Brokers Pvt. Ltd, ensure that no time is lost in processing the claim by ensuring all the necessary information is provided to the insurer. We act as your advisor in managing the claims process.
Claim Intimation 
Claim Follow-up Claim Settlement
IS A BROKER THE SAME AS AN INSURANCE AGENT?
No, there is a very big difference between the two. The agent acts on behalf of one or more insurance companies and can only sell what his principal insurer has to offer.
We, at NOTION INSURANCE Brokers, act on behalf of you, the client. We, as a licensed insurance broker, are legally obliged to act in your best interests, are not tied to any insurer and can arrange the best protection for you at a competitive price, normally ascertained after a due diligence exercise with all the insurers in the market.