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Surveyors not required for health, motor, aviation policy claims: IRDAI

The surveyor and loss assessors are expected to observe the damage and submit their report about it independent of the insurer and the insured.

Insurance regulator IRDAI has said licensed surveyors are not mandatory for settling any claims in the line of business (LoB) like claims under insurance policies including travel and personal accident covers, aviation hull insurance, motor, health and cyber insurance policies.

According to IRDAI, any claims, in respect of loss or damage to crop, trees, plantations and forests which are covered by the government sponsored schemes and claims under policies of motor vehicle insurance where the claim is on account of theft or injury or death to third parties, can now be settled without mandatorily involving a certified surveyor.

The insurer normally sends a surveyor or a loss assessor to determine the damage when a claim is lodged. The surveyor and loss assessors are expected to observe the damage and submit their report about it independent of the insurer and the insured. In a notification on Tuesday, Sujay Banarjee, Member (Distribution), IRDAI, said the regulator has enlarged the exemptions of some more portfolios where use of a surveyor is not mandatory now. However, industry sources said that in segments like fire and engineering, the general insurers will have to continue the mandatory practice of  appointing a surveyor to settle any claims which are above Rs 50,000.

IRDAI has exempted claims under policies in respect of which documentary evidence of the value of loss is available in the form of police reports, short-landing or non-delivery certificates issued by port trusts, railways or other public or semi-government authorities, claims in respect of which excise authorities give a certificate for dutiable items and sling loss claims certified by harbour authorities are now exempted from involving a surveyor for settling claim.

It has also exempted claims of general average under marine policies, claims under policies of motor vehicle insurance where the claim is on account of theft or injury or death to third parties. Claims under health insurance policies including travel and personal accident covers are also exempted. Claims under workmen’s compensation/ benefit policies under the Employees Compensation (Amendment) Act, 2009 or similar Act and claims under public liability policies, including third party liability, professional indemnity, products liability and personal liability except where liability arising out of property damage or defect to physical property /goods are involved are also exempted from involving a surveyor

It has also exempted claims under aviation hull insurance policies and cyber insurance policies, claims under money insurance including cash in transit policies and all risks and burglary insurance policies on personal effects and jewellery. Claims in respect of loss or damage to crop, trees, plantations and forests which are covered by government sponsored Schemes are also exempted.