working in Europe since long and have been rendering yoemen service to the insured and insurance companies. In India , working of insurance companies started from early 20th century and legislations regulating their activities were enacted in 1923 & 1928. However in order to protect the interest of insuring public earlier legislations were consolidated and amended by Insurance Act 1938.

In the year of 1992 Central Government appointed a committee known as “Malhotra Committee “ to suggest and recommend reforms in insurance sector. The committee submitted its report in 1994 wherein inter- alia the committee recommended introduction of “Brokers” in Indian Insurance Market.

Working on the recommendations of Malhotra Committee the Central Govt. (parliament) passed “Insurance Regulatory & Development Authority Act” in 1999, generally known as IRDA Act. The act authorized the Authority to issue licenses for brokers and frame rules and regulations for their working. Insurance Brokers is a new concept in the Insurance Industry . The main purpose to introduce the brokers by IRDA was to create a professional attitude in the Insurance Market that was missing before. Brokers act as a mediator between the client and the company whose main purpose is to give service to their client; they have to work towards providing the maximum satisfaction to their customer.