Insurance

The payment of sum of money by one person to another on the understanding that in specified circumstances the second person will make good any loss suffered by the first.

Insurance Company

Insurance company through insurance broker deal insurance policy of customer. Insurance broker person employed to negotiate a contract of insurance. He is agent for both parties but principal for the purpose of receiving payment from insured. He has a lien on the policy for the balance due.

Insurance Brokers Registration Council

A statutory body set up in consequence of the insurance broker registration Act 1977 with the object of providing a central register of insurance brokers, both individual and corporate, and generally acting as the supervisory body for the profession of insurance broking. Any person advertising himself as an insurance broker must be registered with the council.

The council provides a code of conduct which, although not having the force of law, sets standards to which members are expected to conform. Members disregarding this code risk disciplinary action from the council, which, in extreme cases, has power to delete a member’s name from the register, thus debarring him form advertising himself as a broker.

The council is also charged with ensuring that all members are covered by professional indemnity insurance sufficient to cover up to a specified multiple of total brokerage. Each broker must provide evidence to the council of adequate indemnity cover on each occasion such a policy is due for renewal. The council may, if it so wishes, request sight of the policy or make direct inquiries of the relevant insurer.

In cases where indemnity cover proves insufficient, the council has power to make such grants as it deems necessary.