IRDA

Insurance Surveyors and Loss Assessors Licence: Detailed Procedure

Insurance Surveyors and Loss Assessors

The Insurance Surveyors and Loss Assessors are service providers closely associated with the Insurance Company. During the time of Insurance claims, the Surveyor and Loss Assessors are required to ascertain the damage and determine the genuineness of those claims. The Indian Regulatory Development Authority (IRDAI) authorizes individuals to act as Surveyors and Loss Assessors. There are two types of registration.

  • Individual Surveyor: Given on an Individual Basis
  • Secondly, Corporate Surveyor: Issued to Business Entities

The function of Insurance Surveyors and Loss Assessors

The following, inter alia, be the duties and responsibilities of the Insurance Surveyors and Loss Assessors.

  • Mentioning whether he has any direct or subsequent interest in the subject matter.
  • Maintain confidentiality and neutrality without jeopardizing the liability of the Insurer.
  • Conduct an inquiry related to the property in question suffering loss.
  • Conduct spot and final surveys. 
  • Assess and survey the loss on behalf of the Insurer and insured.
  • Advising the Insurer about loss, depreciation, and loss control.
  • Pointing out the discrepancy in the policy wordings.
  • Provide clarification of the depreciation percentage.
  • Satisfy queries of the insured/Insurer and a person connected to that.
  • Taking expert opinion when it is required.
  • Commenting on salvage and its disposal whenever it is necessary.

The Insurance surveyor or loss assessor shall submit the report to the Insurer as soon as possible, at most 30 days.

Licensing Procedure for an Individual Insurance Surveyors and Loss Assessors

The IRDAI (Insurance Surveyors and Loss Assessors) Regulation, 2015 provided a set of procedures to grant a license to Individual Insurance surveyors and Loss Assessors and Corporate surveyors. 

Who can apply?

Any person who is a student member under these Regulations, 2015, and who intends to work as a Surveyors and Loss Assessors in a general insurance business may apply to the Authority for a grant of license in the Form as specified by the Authority.

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 Eligibility Criteria

  • The qualifications are given in Schedule-I Annexure-1 of this Regulation.
  • Any other qualifications as may be prescribed by the Authority from time to time.
  • The person shall be a “Member of the Institute.”
  • The Applicant shall give an examination for the Surveyor and Loss Assessor such examination conducted by the Insurance Institute of India or any Institute recognized by the Authority.
  • After passing the examination, they may obtain a license to act as Surveyors and Loss Assessors. The Applicant who does not pass the examination must complete the training within three years from the date of enrolment and must enroll afresh.
  • However, who is an existing student member and already enrolled with the Authority not exceed than five years before notification of the Regulation 2015 and yet to complete the training. Such a person shall be required to pass the examination with an option to complete the training and pass the examination within 3 yrs from the dt. of notification of these Regulations. 
  • The person must take practical training as specified by the Authority.

 Documents required:

  • Must sign in to the online portal
  • The application form must be duly complete in all respects;
  • Any recent passport-size photo;
  • PAN card; Address Proof;
  • The result in support of passing the Surveyors and Loss Assessors
  • Completion of training and examination certificate
  • Declaration-cum-Undertaking as specified by the Authority;
  • Membership Certificate issued by the Institute;
  • Fitness statement in the Format as specified by the Authority;
  • Fees payment as may be specified;
  • Any other documents required by the Authority 
  • The Applicant shall be required to upload the documents online.

 Disclosures:

  • Every licensed Surveyor and Loss Assessor must submit a declaration stating that if any changes are made in the information submitted to the Authority, the application for such change shall be granted within 15 days.
  • The Applicant shall pay non-refundable process fees.
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Rejection

  • When an application is not completed as per the instruction specified, it shall be rejected.
  • Before rejecting any application, the Authority should give a reasonable opportunity to complete the application process in respect of rectifying the errors.

Grant of License

  • On being satisfied, the Authority should grant license the Applicant a license and grants the same in FORM-IRDAI-2-LF as given in Schedule II. And mention the class/department or subject of general insurance business: fire, engineering, marine hull, marine cargo, loss of profit, motor, crop, and miscellaneous. 
  • Such license shall be valid for three years.
  • If a license got cancelled or suspended for any reason, such a person might apply the same after the expiry of one year from the date of such cancellation or suspension.

Licensing Procedure for Corporate Insurance Surveyors and Loss Assessors

The procedure is as follows

Who can apply?

  • The Directors or partners of the company or the firm can apply for the grant of license of Corporate Surveyor or Loss Assessor. The requirement has given below:
  • Any applicant who desires to obtain a Corporate Insurance Surveyor and Loss Assessor license shall be required to fill out the Form as specified by the Authority.
  • The eligibility criteria for Insurance Surveyors and Loss Assessors are set out in Regulation, 2015
  • Additionally, the Authority shall satisfy that the application submitted fulfils the requirements of Section 64UM read with Section 42D of the Act.
  • However, none of the directors or partners suffers from any disqualifications mentioned in Section 42D of the Act.
  • There must be at least two Directors / Partners members of the Institute licensed to act as Insurance Surveyors and Loss Assessors.
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Documents required

  • The application form, as specified in the Regulation, is duly complete in all respects.
  • Copy of membership certificate issued by the Institute to the Directors / Partners.
  • Undertaking by two licensed Directors as may be specified.
  • Fit & Proper statements made by the directors/ partners
  • Evidence of fee payment.
  • Any other document/information that the Authority may require.

Disclosure

  • Before joining, the Applicant shall require to complete all survey jobs within the period as provided under IRDAI (Protection of Policyholders’ Interests) Regulations, 2017
  • Such directors/partners must submit a declaration of information about the resignation/ death/ suspension of the director/ partner and any change in a shareholding pattern within 15 days of such change for the grant of a license. 
  • The processing fees are non-refundable.

Grant of license 

  • After being satisfied with the application, the Applicant is eligible for a license grant, and the authority grants the same in FORM-IRDAI-4-LF as given in Schedule II. 
  • The validity of a license is for three years.

Rejection

  • When an application is not completed as per the instruction specified, it shall be rejected.
  • Before rejecting any such application, the Authority should give a reasonable opportunity to the applicant to complete the application and rectify the errors.

Conclusion

Insurance surveyors and Loss Assessors are insurance intermediaries licensed by IRDAI to manage, monitor, deal with the losses on behalf of the Insurer and Insured and, prepare a report thereon, and carry out the work under the code of conduct stipulated under the Law/Regulation. The procedure to obtain individual or corporate surveyors and Loss Assessors licenses shall incorporate with the Regulation.

Read our Article: IRDAI Amends Norms Related to Insurance Surveyors and Loss Assessors: Analysis

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