INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Ref. No: IRDAI/SURV/Regl-1/18-19
Exposure Draft of IRDAI (Insurance Surveyors and Loss assessors) (Amendment) Regulations 2019
Reference is drawn to Insurance Regulatory and Development Authority of India (Insurance Surveyors and Loss Assessors) Regulations, 2015 that were framed consequent upon promulgation of Insurance Laws (Amendment) Act, 2015. Insurance surveyors and loss assessors are included in the definition of intermediary and insurance intermediary; and are governed by Sec.42 D and Sec 64 UM of Insurance Act. The aforesaid Regulations were amended through Insurance Regulatory and Development Authority of India (Insurance Surveyors and Loss Assessors) (First Amendment) Regulations, 2017, clarifying a few regulations.
Thereafter, IRDAI formed a Committee chaired by Member (NL/D), IRDAI to examine the functioning of Indian Institute of Surveyors and Loss Assessors (IIISLA) and also formed a Working Group headed by CGM (Non-life) consisting of insurers as well as surveyors to examine and deliberate upon the existing framework for Surveyors and Loss Assessors. While the Committee has made a number of recommendations for improving the performance of IIISLA, the Working Group made key recommendations, which requires changing the existing legal framework as well as IRDAI (Licensing of Surveyors and Loss Assessors) Regulations,2015.
Further, as per the Sec.64 UM, Sub-section 4 of Insurance Act read with Reg. 12 of IRDAI (Licensing of Surveyors and loss assessors) Regulations, 2015; the limits to assess loss under a policy of insurance in respect of Motor insurance and other than Motor insurance needed a review. It may not be out of place to mention here that both Malhotra Committee as well as Bhandari Committee suggested in their reports to enhance the loss limits, required to be subject to survey; and to utilize the manpower available within the insurance company up to the loss limits so that such claims are settled expeditiously.
2. Rationale for amendment:
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. After a detailed analysis of various recommendations made by the above mentioned Committees as well as the Working Group, 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.
The exposure draft is prepared for carrying out amendment of the existing Insurance Regulatory and Development Authority of India (Insurance Surveyors and Loss Assessors) Regulations, 2015 in the following indicative areas:
i. Students – Pre-licensing Training and examination: 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.
ii. Rationalising the documental requirements for licensing and renewal through optimum online processing;
iii. Revise the applications forms, formats, in line with the proposed changes;
iv. Revise the fees;
v. Enhancing loss limits for appointment of surveyors viz. Motor insurance –above Rs. 75,000/- and Other than Motor Insurance- above Rs. 1,50,000/-
vi. 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;
vii. Revise the chapter on IIISLA;
viii. Define the Code of Conduct for in-house surveyors, with a few additions, dealing with the aspects of conflict of interest;
ix. Expand the obligations of insurers in utilization of surveyors and monitoring their performance and
x. 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)
Draft Regulations are at Annexure – 1. A comparative statement of the existing regulatory provisions and the proposed provisions along with the rationale is at Annexure – 2.
We urge all stakeholders to offer their valuable comments on or before 21st November, 2019 in the format attached as Annexure (in MS Word) to the following mail ids:
1. Ms. Gitika Kathuria; gitika.kathuria [at] irdai [dot] gov [dot] in.
2. Ms. Nimisha Srivastava;nimisha@ [at] irdai [dot] gov [dot] in.