Glossary
What does an insurance broker do, and how is a broker different from an agent?
An insurance broker is licensed by IRDAI to act for the client: it studies your needs, approaches insurers, compares their terms and helps you at claim time. An agent sells on behalf of the insurers they are tied to. Both are regulated by IRDAI, but a broker’s duty is to the client, not to any one insurer.
In short
- A broker acts for the client.
- An agent sells for the insurers they represent.
- Brokers compare insurers and help with claims.
- Both must be licensed by IRDAI.
Broker vs agent, side by side
| Broker | Agent | |
|---|---|---|
| Acts for | The client | The insurers they are tied to |
| Choice of insurers | Approaches and compares across the market | Limited to the insurers they represent |
| Licensed by | IRDAI, as a broker | IRDAI rules, through the insurer |
| At claim time | Helps the client pursue the claim | Varies |
What does a broker actually do?
Three things. Before you buy, it studies the risk and designs the cover. When you buy, it approaches insurers and compares terms line by line, not just premiums. After you buy, it handles changes and helps you at claim time. That last part is where a broker’s duty to the client matters most.
How do I check that a broker is licensed?
Look for its IRDAI broker licence number and check it against IRDAI’s list of licensed brokers. Ethika Insurance Broking is an IRDAI-licensed direct broker. Our IRDAI page explains the regulator’s role.
Frequently asked questions
What does an insurance broker do?
Acts for the client: designs cover, compares insurers' terms and helps at claim time.
What is the difference between an insurance broker and an agent?
A broker acts for the client across the market; an agent sells for the insurers they represent.
Are insurance brokers regulated in India?
Yes. Brokers must hold an IRDAI broker licence.
What happens when you talk to us
A 20-minute video call with a Growth Advisor. No obligation, and no quote pushed. It opens with a five-minute video from our founder on how the benefits stack works and why Ethika exists; the rest is your questions. You’ll leave with an honest read on your current cover and claims experience, and a straight answer on whether we can genuinely help, even if you never become a client.
20 minutes with a Growth Advisor. No obligation.
A note on this page. Everything here is general information, not legal advice, and nothing is an offer. Licensing rules are as understood at the review date; check IRDAI’s website for current requirements. For advice about your situation, talk to us.