INSURANCE AND LOSS SURVEYORS

INSURANCE AND LOSS SURVEYORS :

Insurance Surveyors and Loss Assessors (Licencing, Professional Requirements and Code of Conduct) Regulations, 2000 provides rules for Insurance Surveyors and Loss Assessors in India.

Application for, and matters relating to, grant of licence

Every person who is an individual and intending to act as a surveyor and loss assessor in respect of general insurance business shall apply to the Authority for grant of licence in FORM–IRDA-1-AF as given in the Schedule to these regulations.

The Authority shall, before granting licence, take into consideration all matters relating to the duties, responsibilities and functions of surveyor and loss assessor and satisfy itself that the applicant is a fit and proper person to be granted a licence. In particular and without prejudice to the foregoing, the Authority shall satisfy itself that the applicant, in addition to submitting the application complete in all respects:-

(a) satisfies all the applicable requirements of section 64UM read with section 42D of the Act and rule 56A of the Insurance Rules, 1939;

(b) possesses such additional technical qualifications as may be specified by the Authority from time to time;

(d) has undergone a period of practical training, not exceeding 12 months, as contained in Chapter VII of these regulations; and

(e) furnishes such additional information as may be required by the Authority from time to time.

The Authority on being satisfied that the applicant is eligible for grant of licence, shall grant the same in FORM-IRDA-2-LF as given in the Schedule to these regulations and send an intimation to the applicant together with an identity card mentioning the particular class or category of general insurance business namely, fire, marine cargo, marine hull, engineering, motor, miscellaneous and loss of profit for which the Authority has granted licence and the licence shall remain valid for a period of five years from the date of issue thereof, unless cancelled earlier.

A surveyor and loss assessor, whose licence has been cancelled or suspended for any reason, may submit an application for issuance of licence, after the expiry of three years from the date of such cancellation or suspension, and, such an application shall be treated as a fresh case, and, accordingly, the applicant shall satisfy all the requirements of sub-regulation (2).

A surveyor and loss assessor shall be subject to categorisation as specified in Chapter V of these regulations.

A licence issued, before the commencement of these regulations, by the Controller of Insurance or his authorised representative shall be deemed to have been issued in accordance with these regulations.

Corporate Surveyors and Loss Assessors

Where the applicant is a company or firm, the Authority shall be satisfied that all the directors or partners, as the case may be, possess one or more of the qualifications specified in section 64UM(1)D(i) of the Act and none of such directors or partners, as the case may be, suffers from any of the disqualifications mentioned in section 42 D of the Act read with Section 42(4) of the Act. The applicant referred to in (1) shall apply in FORM-IRDA-3-AF as given in the Schedule to these regulations. The Authority on being satisfied that the applicant is eligible for grant of licence, shall grant the same in FORM-IRDA-4-LF as given in the Schedule to these regulations, and, all the provisions of regulation 3 above, shall apply mutatis mutandis to corporate surveyors.

Duties and Responsibilities of a Surveyor and Loss Assessor

A surveyor and loss assessor shall, for a major part of the working time, investigate, manage, quantify, validate and deal with losses (whether insured or not) arising from any contingency, and report thereon, and carry out the work with competence, objectivity and professional integrity by strictly adhering to the code of conduct expected of such surveyor and loss assessor.

(2) The following, shall, inter alia, be the duties and responsibilities of a surveyor and loss assessor:-

(i) declaring whether he has any interest in the subject-matter in question or whether it pertains to any of his relatives, business partners or through material shareholding;

Explanation: For the purpose of this clause ‘relatives’ shall mean any of the relatives as mentioned in Schedule IA to the Companies Act, 1956;

(ii) maintaining confidentiality and neutrality without jeopardising the liability of the insurer and claim of the insured;

(iii) conducting inspection and re-inspection of the property in question suffering a loss;

(iv) examining, inquiring, investigating, verifying and checking upon the causes and the circumstances of the loss in question including extent of loss, nature of ownership and insurable interest;

(v) conducting spot and final surveys, as and when necessary and comment upon franchise, excess/under insurance and any other related matter;

(vi) estimating, measuring and determining the quantum and description of the subject under loss;

(vii) advising the insurer and the insured about loss minimisation, loss control, security and safety measures, wherever appropriate, to avoid further losses;

(viii) commenting on the admissibility of the loss as also observance of warranty conditions under the policy contract;

(ix) surveying and assessing the loss on behalf of insurer or insured;

(x) assessing liability under the contract of insurance;

(xi) pointing out discrepancy, if any, in the policy wordings;

(xii) satisfying queries of the insured/insurer and of persons connected thereto in respect of the claim/loss;

(xiii) recommending applicability of depreciation and the percentage and quantum of depreciation;

(xiv) giving reasons for repudiation of claim, in case the claim is not covered by policy terms and conditions;

(xv) taking expert opinion, wherever required;

(xvi) commenting on salvage and its disposal wherever necessary.

(3) A surveyor or loss assessor shall submit his report to the insurer as expeditiously as possible, but not later than 30 days of his appointment.

Provided that in exceptional cases, the afore-mentioned period can be extended with the consent of the insured and the insurer.

Categorisation of Surveyors

A surveyor and loss assessor shall be categorised, as mentioned in sub-regulation (3), based on the following criteria:

(i) professional qualifications;

(ii) training undergone;

(iii) experience as a surveyor and loss assessor and any other relevant professional experience;

(iv) any other criteria, as may be specified by the Authority from time to time.

(2) The categorisation shall be done and reviewed from time to time on the basis of a point system evolved by the Authority in consultation with the Committee referred to in Chapter III of these regulations.

(1) The categorisation shall consist of allocation of one or more specified departments of insurance business, based on the factors mentioned above and shall include categorisation of the surveyors and loss assessors into three categories, viz., Category A, Category B and Category C.

(2) Every surveyor and loss assessor, whether a company or firm or an individual, shall be eligible to carry on the work as a surveyor or loss assessor, as per the categorisation specified in the licence.

Code OF Conduct for Insurance Surveyor and Loss Assessor

Every surveyor and loss assessor shall-

(1) behave ethically and with integrity in the professional pursuits. Integrity implies not merely honesty but fair dealings and truthfulness;

(2) strive for objectivity in professional and business judgment;

(3) act impartially, when acting on instructions from an insurer in relation to a policy holder’s claim under a policy issued by that insurer;

(4) conduct himself with courtesy and consideration to all people with whom he comes into contact during the course of his work;

(5) not accept or perform survey works in areas for which he does not hold a licence;

(6) not accept or perform work which he is not competent to undertake, unless he obtains some advice and assistance, as will enable him to carry out the work competently;

(7) carry out his professional work with due diligence, care and skill and with proper regard to technical and professional standards expected of him;

(8) keep himself updated with all developments relevant to his professional practice;

(9) at all times maintain proper record for work done by him and comply with all relevant laws;

(10) assist and encourage his colleagues to obtain professional qualifications, and, in this behalf, provide free articleship and/or practical training for a period of twelve months;

(11) maintain a register of survey work, containing the relevant information, in FORM-IRDA-11 as given in the Schedule to these regulations, and shall keep important records of the survey reports, photographs and other important documents for a period three years and furnish the same and such other specified returns, as and when called for by the Authority or by any investigating authority or the insurer;

(12) disclose to all parties concerned his appointment, where the acceptance or continuance of such an engagement may materially prejudice, or could be seen to materially affect the interests of any interested party. As soon as a conflict of interest is foreseen, every surveyor and loss assessor shall notify all interested parties immediately and seek instructions for his continuance;

(13) not disclose any information, pertaining to a client or employer or policy holder acquired in the course of his professional work, to any third party, except, where consent has been obtained from the interested party, or where there is a legal right or duty enjoined upon him to disclose;

(14) neither use nor appear to use, any confidential information acquired or received by him in the course of his professional work, to his personal advantage or for the advantage of a third party.

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