Insurance Claim Settlement: IRDAI wants loss limit above Rs 1.5 lakh for appointing surveyors; Here’s why

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Updated: November 1, 2019 2:04:29 PM

Insurance surveyor appointment rules change - (IRDAI (Insurance Surveyors and Loss assessors) (Amendment) Regulations 2019 (Draft): The Insurance Regulatory and Development Authority of India (IRDAI) has decided to streamline the existing regulatory framework.

life insurance, IRDAI , unit-linked life insurance products ULIPs, lapsed policy, Partial withdrawal, pension plans, surrender valueInsurance surveyor appointment rules to change.

Insurance surveyor appointment rules change – (IRDAI (Insurance Surveyors and Loss assessors) (Amendment) Regulations 2019 (Draft): In a bid to facilitate wider participation of the younger generation for appointment as insurance surveyors, the Insurance Regulatory and Development Authority of India (IRDAI) has decided to streamline the existing regulatory framework. The insurance regulator has released draft IRDAI (Insurance Surveyors and Loss assessors) (Amendment) Regulations 2019, inviting comments from all stakeholders before November 21.

Talking about the need for amendments, the regulator said Thursday,” Claim payment is the moment of truth and the insurance surveyor and loss assessor plays a pivotal role in assessing the losses in case of general insurance claims… in an attempt to facilitate wider participation of younger generation to become surveyors, to meet the varied professional requirements of general insurance market and to rationalise the licensing requirements, it is felt essential to streamline the regulatory framework through amendment.”

Proposed Amendment:

The draft regulations propose several changes in the Insurance Regulatory and Development Authority of India (Insurance Surveyors and Loss Assessors) Regulations, 2015. For appointment of surveyors, IRDAI has proposed to enhance the loss limit to above Rs 75,000 in Motor insurance, and above Rs 1.5 lakh in other than Motor insurance cases.

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The existing rules say, “Surveyors and Loss Assessors shall be appointed either by insurers or insured to assess loss under a policy of insurance in respect of (a) Motor insurance – above Rupees fifty thousand (b) Other than motor insurance – above Rupees one lakh.” With the amendment, the IRDAI wants to raise these limits to above Rs 75,000 and above Rs 1.5 lakh respectively.

Talking about the rationale for increasing this limit, the IRDAI says, “The limits to assess loss under a policy of insurance in respect of Motor insurance and other than Motor insurance needed a review as per Regulations. The enhancement of limits for small claims will help to utilize the manpower available within the insurance company for survey work up to the loss limits so that such small claims are settled expeditiously.”

Currently, the rules mandate that existing limits for appointment of surveyors shall be reviewed every three years by the Authority. The draft rules propose to make this review from time to time, instead of three years.

Other proposed amendments:

  • To do away with practical training requirement with surveyors and instead, introduce, an examination of high quality based on relevant syllabus with practical orientation in the content. The syllabi shall be prepared by the Institute/s recognized for the purpose.
  • Rationalising the documental requirements for licensing and renewal through optimum online processing;
  • Revise the applications forms, formats, in line with the proposed changes;
  • Revise the fees;
  • Modify the Duties and Responsibilities of Surveyors suitably, including revision of the time-lines for submission of survey report in order that they are aligned with those stipulated under IRDAI (Protection of Policyholders’ Interests) Regulations 2017;
  • Revise the chapter on IIISLA;
  • Define the Code of Conduct for in-house surveyors, with a few additions, dealing with the aspects of conflict of interest;
  • Expand the obligations of insurers in utilization of surveyors and monitoring their performance and
  • Introduce transitory provisions (new regulations to be applicable on prospective basis only and not applicable for the existing licensed Surveyors or those who have already enrolled as Students)

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