Insurance agents represent their principle and discharge their duties not only for them, but also at their place. In case of a life insurance, the insurance agent is only an agent in a very limited and restricted sense. In countries like India, insurance agents have no power or authority to complete the contract in the name or on behalf of the insurer. He can only submit proposals and subsequently the considerations.
However, insurance agents in fire and motor insurances have the right to finalize a binding contract by issue of a specific cover note.
Rights of insurance agents are classified here in below:-
Right of remuneration from the principal
Right to receive commission
Right to be indemnified
Right to lien
The duties of an insurance agent are as follows:-
Duty to carry out proper transaction
Duty to follow instructions
Duty to use skill
Duty to act diligently and honestly
In an eventuality wherein an insurance agent fails to execute his duty, the following measures can be initiated against him:-
Forfeiture of rights
Dismissal from such agency
Criminal action
Shift of liability for any loss from the principal to the errant agent
