Explain the role of insurance intermediaries in Insurance business. Explain the relevant provision of the Insurance Act, 1938, which gives protection to Agents who have served the insurance company for at least 5 years.

Role of Intermediaries in Insurance Industry Innovative Marketing: Insurance intermediaries bring innovative marketing practices in the insurance marketplace. This deepens and broadens insurance markets by increasing consumers' awareness of the protections offered by insurance, their awareness of the multitude of insurance options and their understanding as to how to purchase the insurance they need. Dissemination of information to Consumers: Intermediaries provide customers with the necessary information required to make educated purchases/informed decisions. Intermediaries can explain what a consumer needs, and what the options are in terms of insurers, policies and prices. Faced with knowledgeable client base that has multiple choices, insurers will offer policies that fit their customers' needs and at competitive prices. Dissemination of information to the marketplace: Intermediaries gather and evaluate information regarding placements, premiums and claims experience. Sound Competition: Increased consumer knowledge ultimately helps increasing the demand for insurance and improve take up rates. Increased utilization of insurance allows producers of goods and services to make the most of their risk management budgets and take advantage of a more competitive financial climate, thereby, boosting economic growth. An insurance agent is paid commission for every premium received till death or maturity or the premium paying period on the policies sourced by him on behalf of an insurance company. However, where the Agent is terminated, the commission on the premiums paid subsequent to the date of termination stands normally forfeited. However, Section 44 of the Insurance Act gives protection to Agents who have served the insurance company for atleast 5 years. Therefore, where the services of an insurance agent is terminated after the Agent has served the insurer continually for a period of 5 years, the insurer is required to pay renewal commission on premiums received subsequent to termination on policies sourced prior to termination, if the following conditions are satisfied: If the agent has not been terminated on the grounds of fraud. That policy amounting to not less than ₹50,000 of sum insured by the agent were in force on a date one year before his agency to act as an agent of the company. That the renewal commission due to him shall not exceeds 4%. The section also empowers that the commission shall be payable to the legal heirs of the agent after his death say for 5 years, as levy on such commission is payable had such agent been alive.