Section 27 in Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018
27. Risk Management Services.
(1)An insurance broker may charge the client fee for the services rendered by them to the client for risk management services or other similar services as per the functions defined under these regulations.(2)The insurance broker can undertake this activity only for commercial risks based on the written confirmation from client for those fees.(3)The Insurance broker cannot receive both the remuneration and reward as stipulated under the IRDAI (Payment of commission or remuneration or reward to insurance agents and insurance intermediaries) Regulations, 2016 and fees for the same risk management services as given in Regulation 2(1)(q).(4)The insurance broker shall obtain a written mandate from the client to offer risk management services and shall keep a record of the risk management services offered to the client which will include details such as name of the client, place of risk, nature and type of risk management services undertaken, amount of fee charged from the client, basis of fee charged, etc.(5)the insurance broker may charge fee for such other similar services as may be mutually decided between the insurance broker and the client.(6)In case the insurance broker does not have the necessary skills and resources, it may engage external experts or specialists for undertaking the risk management services or such other similar services.(7)In such case the insurance broker shall inform the client and shall keep a record of the risk management services or such other similar services offered to the client which will include details such as name of the expert, service rendered, fees paid, basis of fee paid, etc.(8)The insurance broker shall be responsible for all acts of the external experts for undertaking risks management services.
