The opening up of the insurance sector has created a new wave of expectations from the private sector regarding the kind of policies and service levels. The products rolled out by the private insurers will play an instrumental role in evoking interest. But the underlying emphasis would be on the servicing the policies. This is one of the areas where the largest insurance company has been found to be lacking.

As far as servicing is concerned, the role played by the insurance agent is most important, as he is the direct link between the insurance company and the client. The client identifies the company with the help of the agent who represents it. Thus, the service level of these agents becomes the deciding factor in acquiring new clients. Rightly so, the private insurers are emphasisng on their agent network to deliver better services.

Below are the important points that you should look at before you associate yourself with a particular agent, as you would require to be in touch with him for at least 10 years, for the servicing of the policy.

• For any person to qualify as an insurance agent, IRDA has laid down some guidelines, which need to be followed stringently. The candidate has to undergo 100 hours training (50 hours for C.As and M.B.As) at an IRDA approved institution and pass the test held by IRDA. Only on completion of these requirements, is he allowed to sell insurance policy. Thus, ensure that your agent has duly fulfilled these requirements and holds a valid license to sell insurance policies.
   

• Your insurance agent needs to have comprehensive understanding of your requirements, and accordingly suggest a policy that fulfills your need. One trend that has been followed for a very long time is that agents sell the policy that would attract better commission even if that is not your requirement. Now with the changing scenario, more emphasis will be provided to a complete financial plan, where your agent after understanding your needs provide you with the solution that suits you best.
   

• He should have in-depth knowledge of all the policies that his insurance company has to offer. Many a times, it is observed that agents are not well versed with the product line of the insurer as also the minute details of the policies. Moreover, he should be informed about the competitors’ products so as to effectively answer queries on that count.
   

• After sales service is one factor that has been neglected for a very long time. Regular updates on the policy status in term of premium payments, declaration of bonus etc. are important inputs that any policyholder would like to have. It is important for your agent to have a service-oriented attitude by providing not only these inputs but to keep you updated with the new policies that would help you to plan for your financial goals better.
   

• When the claim arises, the agent, being the contact point between the policyholder and insurer, assumes an important role. Your agent should have a clear understanding of the formalities that needs to be fulfilled at the time of claim, or requirement of a loan or any alteration to your policy.
   

An insurance agent needs to be much more than a salesman who pushes products that help minimise your tax liability. Insurance is a long-term commitment (policies are in force for atleast 10 years) and is needed at different points in time in one’s life.

The consultant should be able to meet all your requirements in terms of financial planning, regular revisions on the insurance needs and need-based solutions apart from the need for insurance.

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