Who are Insurance Surveyors and Loss Assessor?
Surveyors are professionals who assess the loss or damage and serve as a link between the insurer and the insured. As per Insurance Act all the claims above Rs.20000/- must be surveyed by an independent professional. The Insurance Companies on receipt of any claims appoints the surveyor to assess the loss and submit a report quantifying the claim payable under the policy.
Surveyors are independent professionals licensed by IRDA. They usually function only in non life business. Their job is to assess the actual loss and avoid false claims. Surveyors are not employees but are independent professionals hired by the insurance company.
Who can become Insurance Surveyor?
The eligibility criteria for joining this profession are as follows –
1. Fellowship or Associate ship of the Institute of Insurance Surveyors and Adjustors (IISA), Mumbai.
2. Fellowship or Associate ship of the Institute of Chartered accountants or Cost and Works Accountants.
3. A degree or diploma in architecture from a recognized university or institute.
4. A degree or diploma from a recognized institute of engineering.
5. A degree or diploma in Naval Architecture.
6. Possesses such other technical qualifications as may be specified by the regulations made by the authority.
7. Does not suffer from any of the disqualifications mentioned in sub section (4) of Section 42.
Section (4)of Section 42 : The disqualifications above referred to shall be the following:
(a) That the person is a minor
(b) That he is found to be of unsound mind by a Court of competent jurisdiction
(c) That he has been found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a Court of competent jurisdiction
Provided that where at least five years have elapsed since the completion of the sentence imposed on any person in respect of any such offence, the Authority shall ordinarily declare in respect of such person that his conviction shall cease to operate as a disqualification under this clause.
(d) That in the course of any judicial proceeding relating to any policy of insurance of the winding up of an insurance company or in the course of an investigation of the affairs of all insurer it has then found that he has been guilty off or has knowingly participated in or connived at any fraud, dishonestly fir misrepresentation against an insurer or an insured.
(e) That in the case of an individual, he does not possess the requisite qualifications and practical training for a period not exceeding twelve months, as may be specified by the regulations made by the Authority in this behalf.
(f) That in the case of a company or firm making an application under sub-section (1) or sub-section (3), a director or a partner or one or more of its officers or other employees so designated by it and in the case of any other person, the chief executive, by whatever name called, or one or more of his employees designated by him, do not possess the requisite qualifications and practical training and have not passed such an examination as required under clauses (e) and (f)
(g) That he violates the code of conduct as may be specified by the regulations made by the Authority.
Procedure of license for Surveyor & Loss Assessor
Any person wishing to become a surveyor must pass a IRDA exam, get training for one year under a A or B category surveyor for one year and get himself categorized as per IRDA norms. There are 3 categories of surveyor A,B,C. The categories are being awarded by IRDA depending upon the experience. A surveyor can work with any number of insurance companies.
(1) 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 IRDA for grant of licence in FORM-IRDA-1-AF
(2) Where the applicant is a company or firm (in FORM-IRDA-3-AF), the IRDA 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.
(3) The IRDA shall, before granting license, 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 license. In particular and without prejudice to the foregoing, the IRDA 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 Insurance Act, 1938 and rule 56A of the Insurance Rules, 1939.
(b) Possesses such additional technical qualifications as may be specified by the IRDA from time to time.
(c) Has furnished evidence of payment of fees for grant of license, depending upon the categorisation.
(d) Has undergone a period of practical training, not exceeding 12 months, as contained in Chapter VII of these regulations.
(e) Furnishes such additional information as may be required by the IRDA from time to time.
(4) The IRDA on being satisfied that the applicant is eligible for grant of license, 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 IRDA has granted license and the license shall remain valid for a period of five years from the date of issue thereof, unless cancelled earlier.
(5) A surveyor and loss assessor, whose license has been cancelled or suspended for any reason, may submit an application for issuance of license, 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).
(6) A surveyor and loss assessor shall be subject to categorisation as specified in Chapter V of these regulations.
(7) A license 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.
On and from May 1, 2001, the fee payable to the IRDA by fresh applicants for grant of license to act as surveyors and loss assessors, category wise, shall be as stated in the following table:
Insurance risk surveyors carry out surveys of buildings, machinery, transport and other sites or items that need to be insured. A key part of the work is to produce reports, to help an agent who sells insurance, decide on the terms and conditions of insurance policies. Insurance surveyors usually specialize in one of the following areas:
• Fire and Perils – examining plans, construction and fire protection systems to assess the risks to a building and its contents
• Accidents and Liability – assessing the possible risks to employees, customers and visitors to a building or site
• Engineering Insurance – surveying mechanical and industrial plants, machinery and equipment for faults and risks
• Burglary and Theft – inspecting business premises to check how goods are stored and improve security.