Here are some frequently asked questions
which people often have in relation to Insurance
and Insurance Brokers.
Why should I use an insurance broker?
Using a broker gives you the widest choice
possible for your insurance.
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Insurance brokers shop around for your
insurance to get the best policy for you. By
law a broker must deal with a minimum of 5
insurance companies but most brokers deal
with approximately ten insurers. This means
the broker will shop around each of
those companies and get the best deal
possible to suit you.
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Your broker also has access to insurance
companies who only deal with brokers.
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If you do not want to use a broker then you
are free to go 'direct' to an insurance
company but remember that company is only
offering you it's own products - it is not
offering you choice.
This is true of direct insurance companies,
and banks and other companies offering
'direct' insurance. You do not have the
choice or value for money offered by a
broker checking maybe ten insurance
companies for you. To do the same job as a
broker you will have to phone all insurance
companies on the market and compare their
prices and the cover they offer. And
do you know what the company are like to
deal with? Are they flexible? Efficient? Do
they pay claims promptly? Your broker can
answer these questions on any insurance
company he deals with and will take this
information into account when choosing your
insurance.
What is
an "IBA Broker"?
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An IBA "broker" is a broker who is an
accepted member of, and regulated by, the
Irish Brokers Association (IBA).
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IBA insists that it's member brokers keep
higher standards than other brokers.
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IBA brokers must:
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be independent (not biased or tied to
any one company).
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have a minimum level of experience and
education.
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Be bonded for €200,000.
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Have professional indemnity insurance to
cover you, the client, in the rare event
of the broker making a mistake when
dealing with your insurance. Not all
brokers offer you this protection.
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Our advice is to deal with an IBA broker to
ensure you get the highest standards. IBA
brokers offer you service, protection and
value for money.
What questions should I ask my broker?
There are a
number of important questions that you should
ask any broker especially when you are dealing
with the broker for the first time.
Who are you regulated
by?
Your broker should be regulated by the Irish
Financial Services Regulatory Authority as
an authorised advisor.
Are you independent?
If an intermediary is not independent, he
may favour one company over another and this
may not be to your benefit.
Is your business bonded?
Remember the bond is there to protect you,
the customer in the event of the broker
going out of business.
Do you have Professional Indemnity
Insurance?
Your broker should have this insurance to
protect you, his customer. If he is not an
IBA member, ask to see the Certificate of
Insurance/Cover Note.
What educational qualifications do you
have?
At a very minimum your broker should have
passed a foundation course in insurance.
Higher qualifications which are common among
brokers include ACII, FCII, ALIA and FLIA.
What should I get from my broker if I take
out an insurance policy?
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Your broker should always give you
A RECEIPT when
you complete a proposal form, pay a premium
or part of a premium. The receipt, known as
a "Section 30 Document" will show what type
of insurance you have paid for and will
usually indicate whether you paid by cash or
cheque.
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Where possible your broker will give you
the POLICY DOCUMENT &
SCHEDULE (and for motor insurance
the Insurance Certificate and Disc) on the
day you arrange the insurance. If the broker
does not have these documents to hand at
that time, you should receive them shortly
afterwards by post.
What are the Principles of Insurance?
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