by SURVEYORS Link between Insurer and Insured an Insurance Policy is a combination of protection and savings to meet your future needs. In today’s life the worthiness of insurance cannot denied by anyone. Whenever a person takes an insurance policy, the motive behind this is to secure the future from certain risk on the happening of certain event. We can feel the importance of insurance in our day-to-day life also. In modern and busy life people want to save they’re each and everything through the insurance.
As per requirements of an individual, insurance companies provide insurance policy for buildings, machinery and accessories, stock and stock in process for business purpose, furniture for the purpose of business and profession, mobile, transport, home, health etc. against loss an damages arising out of fire and allied perils. Machinery Breakdown policy covers financial loss incurred by the insured due to loss or damage to machinery as a result of accidental electrical and mechanical breakdown. It reimburses the insured for the cost of repairs or replacement of machinery of like nature.
Fire loss of profit insurance covers major fire loss, due to which the business operations get interrupted resulting in reduced turnover and eventually in loss of profits. Plate glass insurance covers against the actual breakage of plain glass of ordinary glazing quality completely and securely fixed. Any equipment operated with electrical power may suffer breakdown spontaneously. Electronic equipment insurance policy covers “All Risks” to cover Computers, Bio medical equipment, X-ray equipment, audio/video equipment etc. Disaster insurance policy provides protection against disasters arising out of earthquake, cyclone, landslide, floods, explosion, fire and so on. Machinery Insurance provides protection against unforeseen and sudden physical damage to the insured machinery. Mobile Cellular Phones and Pager can be covered against the risk of fire, theft Terrorist activity, Riot and Strike.
Suppose a person takes policy for his car against the fire, accident and theft etc. One day the car meets with an accident, the policyholder will lodge a claim with the company for compensation. The insurance company will appoint surveyor to assess the loss in accident. The surveyors will then go and assess the extent of loss. On the basis of the report submitted by the surveyor, the insurance company will liable to settle the claim of insurance. The IRDA (Insurance Regulatory and Development Authority) clearly articulates that a claim will have to be paid within 30 days from the date of receipt. In case the claim wants an investigation then the insurance company has to complete the investigation not later than 6 months from the time of lodging the claim. Moreover, in case a claim is ready for payment but the payment cannot be made due to any reasons then such an amount will earn interest at the rate applicable to a savings bank account.
But some times the insurance companies serve late in settling the claim lodged by the insured and do not follow the rules provided in IRDA (Insurance Regulatory and Development Authority).
Role and Responsibilities of Surveyor in Insurance claim:
- Investigate and Assess: The car insurance surveyor investigates to assess and verify the damages and tries to quantify the loss that has occurred. The losses may have also been sustained by a third party, apart from the insured. At the completion the surveyor submits the report to the insurer.
- Conflict of interest: If the surveyor is in any way related to the incidence or the insured, they must declare it to the insurer prior to the assessment. Any personal relationship may hamper the neutrality of the surveyor and his report being rejected on the grounds of conflict of interest.
- Neutrality and Confidentiality: The surveyor must remain neutral in all cases and ensure to secure interest of both the parties and should not endanger the responsibility of the insurance company and interest of the insured. The surveyor also must not reveal any personal details of the insurer to anyone outside of the car insurance claim process.
- Thoroughness: The surveyor must do a thorough job and personally conduct the spot survey. After careful consideration of the causes of the incidence and the circumstances at which the incidence occurred, the surveyor can comment upon the insurance category. The surveyor should not miss out on any details pertaining to the incidence or the claim in the report that he or she submits.
- Provide immediate financial relief to the insured: Surveyor may recommend on Account payment up to 75%, wherever admission of liability is clearly established, to provide immediate financial relief to the insured.
- Damage prevention advice: The surveyor should share any applicable advice that may result in further loss prevention and share safety or security procedures.
- Point out discrepancy: The surveyor must point out discrepancy or ambiguities in the verbiage of the policy that he or she comes across.
- Suggest the Depreciation: The surveyor shall make recommendations based on any depreciation that may have happened in the car due to age and usage. The surveyor needs to determine the appropriate depreciation percentage and suggest the same in the report. They can also comment on the disposal or salvage as applicable.
- Maintain timelines: The surveyor needs to be appointed within 72 hours from the initiation of the claim according to the IRDA regulation of 2017. He must submit their report to the insurer and a copy to the insured, within 30 days of appointment. This can be extended by the Surveyor to a maximum of 6 months provided the insured has been informed about the same.
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.
The insurance business operates on the principle of indemnity, that is, putting the customer in same position financially in which he was before the loss happened. As there is a tendency on the part of customer, to benefit out of an insurance transaction, the surveyor puts a check on that and assesses the loss. He then gives a report to the insurance company and based on the surveyor’s report the company will settle the claim.
