MARKET PLAYERS AND THEIR ROLES

MARKET PLAYERS AND THEIR ROLES

There are many market players in insurance industries i.e.
(a) Agents,
(b) Brokers,
(c) Surveyors & Loss Assessors,
(d) Health Third Party Administrators,
The role of varied players of insurance market will be discussed hereby:
Insurance Agent
Section 2(10) of the Insurance Act, 1938, defines an Insurance Agent as an insurance agent licensed under
Section 42 of the said Act and who received or agrees to get payment by means of commission or other
remuneration in consideration of his soliciting or procuring insurance business including business concerning
the continuance, renewal or revival of policies of insurance.
Fist going in detail in regards to the role of an insurance agent, we shall discuss the standing of Insurance agent.
Principal-Agent Relationship- Legal Implications and Status
Sections 182 to 238 of the Indian Contract Act, 1872 govern the partnership between a Principal and an
Agent. An insurance agency contract can also be governed by the principles enshrined therein. An Agent (“Insurance Agent”) is really a person employed to do any act for another or even to represent another in dealings with
third persons. The big event of a realtor is to create his principal into contractual relations with third persons. A
Principal (“Insurer”) is really a person for whom the aforementioned act is completed or who's so represented.
INSURANCE CONTRACT
An agreement of insurance is an agreement whereby one party, called the insurer, undertakes, in return for an
agreed consideration, called the premium, to pay for one other party, namely the insured, a sum of money or its
equivalent in kind, upon the occurrence of a specified event causing a loss to him. The policy is just a
document that will be an proof of the contract of insurance.
According to Anson, a contract is definitely an agreement enforceable at law made between several persons through which
rights are acquired by yet another persons to certain acts or forbearance on the part of other or others.
The Indian Contract Act, 1872, sets forth the basic requirements of a Contract. According to Section 10 of the Act:
“All agreements are contracts if they are created by the free consent of parties competent to contract, for a
lawful consideration and with a lawful object, and aren't hereby expressly declared to be void…..&rdquo ;.
An Insurance policy can also be a contract entered into between two parties, viz., the Insurance Company and the
Policyholder and fulfills certain requirements enshrined in the Indian Contract Act.

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