With process of loss survey, Irdai aims to ensure timely submission of reports

In order to streamline the process of loss survey, the Insurance Regulatory and Development Authority of India (Irdai) has issued a notification which will ensure transparency and timely submission of reports.

An individual surveyor and loss assessor can only undertake survey of the firm where he is employed with and can do surveys in the departments alloted to him. A corporate surveyor and loss assessor can undertake survey jobs only in the departments displayed against each of the director or partner’s licence issued by the insurance regulator. The licence of the surveyor, both for individual and corporates, will be for three years and can be renewed online after submission of all relevant documents like copy of PAN card, address proof, etc.

The Insurance Surveyors and Loss Assessors notification of Irdai underlines that every licensed surveyor will investigate, manage, quantify, validate and deal with losses arising from any contingency, and report it to the insurer and the insured. The survey will have to be conducted with objectivity and professional integrity and adhere to the code of conduct stipulated by the insurance regulator. The surveyor will have to maintain confidentiality and neutrality without jeopardising the liability of the insurer and claim of the insured.

Surveyors are experts who assess the loss or damage caused and are a link between the insurer and the insured. The Insurance Act mandates that all the claims in the non-life segment above R20,000 have to be surveyed by professional surveyors who have a licence from the insurance regulator. Insurance risk surveyors carry out surveys of vehicles, buildings, plant and machinery and other non-life objects that are insured by an individual policyholder or a corporate entity. The surveyor gives a report of the damage and based on that report on the quantum of losses, the insurance company processes the claim.

The surveyor will have to maintain records including in electronic form in specific format as prescribed by the insurance regulator. The data will have to capture claim-wise and individual surveyor-wise details of each claim surveyed by the company. The corporate surveyor will will have to put in place systems which can be accessed by the regulator.

The application for grant of licence can be rejected if it does not conform with the norms of the regulator, or if the regulator is of the opinion that the grant of licence is not in the interest of the policy holders. The rejection of the application will be communicated to the applicant within a month of such rejection stating the grounds. However, an aggrieved applicant can appeal to the Securities Appellate Tribunal, as per the procedure prescribed for such an appeal by the regulator within 45 days from the date on which the rejection copy is received by the applicant.

After completing the survey of the losses, the assessor will have to submit the report within 30 days and the copy of the report has to be given to the insured and insurer giving the surveyor’s comments. In cases where the survey report is pending due to non completion of documents, the surveyor will have to issue the final report based on the available documents on record. If the insurer finds that the report is incomplete, he can inform the surveyor within 15 days of the receipt of the original survey report. The surveyor, on his part, will have to furnish an additional report within three weeks of the date of receipt of communication from the insurer. Every insurer will file half-yearly reports to the regulator giving details of claims reported, number of claims surveyed, claims settled, amount paid, and the time taken to complete the claim. The insurance regulator will appoint some people to inspect the survey work, books, records and the documents filed by the surveyor.

A surveyor and loss assessor will be categorised on the basis of level of membership allotted by the Indian Institute of Insurance Surveyors and Loss Assessors promoted by Irdai. The three levels of membership in the institute are — licentiate, associate and fellow. Every surveyor, whether a company or an individual, will be eligible to carry on the work as a surveyor and loss assessor as per the level of membership allotted by the institute. The institute will conduct training, examination, seminars and workshops for all members to upgrade his skills. A licentiate will have to undergo 100 hours of training, an associate for 50 hours and fellow for 25 hours. Analysts say the new norms will bring in transparency and credibility in the way the surveys are done for assessing the damage for non-life claims.

Addressing the chinks in link

* All claims in the non-life segment above R20,000 have to be surveyed by professional surveyors who have a licence from the insurance regulator
* An individual surveyor and loss assessor can only undertake survey of the firm where he is employed with and can do  surveys in the departments alloted to him
* After completing the survey of the losses, the assessor will have to submit the report within 30 days
* Every licensed surveyor will investigate, manage, quantify, validate and deal with losses arising from any contingency, and report it to the insurer and the insured