IRDAI Surveyor Engineering (S-05) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Licence validity period

A surveyor licence granted under IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015 is valid for five years and must be renewed before expiry, failing which it lapses.

Categories of surveyor licence

Licences are granted in Category A (life), B (general) and C (both), and by class of business such as fire, marine, motor, engineering and miscellaneous; practice beyond licensed classes is a violation.

Renewal application deadline

Renewal must be applied for at least 30 days before expiry with the prescribed fee; late applications may require a fresh licence and re-compliance with eligibility conditions.

Surveyor fee payment timeline

The insurer must pay the surveyor's fee within 15 days of receipt of the final survey report; fees follow the prescribed slab rates based on the assessed loss amount.

Record retention requirement

Surveyors must preserve claim records, working papers and reports for at least five years and produce them to IRDAI on demand during inspection or investigation.

Professional indemnity requirement

Licensed surveyors must hold professional indemnity insurance covering errors and omissions in loss assessment, protecting both the surveyor and the insured against negligence claims.

Conflict of interest rule

A surveyor must decline appointment where a relationship exists with the insured, intermediary or claimant; accepting remuneration from the insured for the same claim is prohibited.

Disciplinary powers of IRDAI

IRDAI may warn, fine, suspend or cancel a surveyor's licence for misconduct; appeals against such orders lie to the Securities Appellate Tribunal under the Insurance Act, 1938.

Principle of indemnity

The insured is restored to the pre-loss financial position, no better and no worse; it applies to property and liability insurance but not to life or personal accident benefits.

Insurable interest timing

Insurable interest must exist at the time of loss for property insurance and at inception for life insurance; absence of interest defeats the claim.

Utmost good faith

Both parties must disclose all material facts; non-disclosure or misrepresentation of a material fact makes the contract voidable at the insurer's option.

Proximate cause

The nearest effective cause of loss determines liability; where several causes operate, the dominant and effective cause governs the claim outcome.

Subrogation right

After paying a claim, the insurer acquires the insured's right of recovery against the third party responsible; the insured cannot recover twice for the same loss.

Contribution between policies

When multiple policies cover the same risk at the same time, each insurer pays rateably; the insured cannot profit from overlapping covers.

Average clause formula

Claim payable = (sum insured ÷ value at risk) × loss. It applies where the sum insured is less than the actual value of the property at the date of loss.

Reinstatement versus indemnity value

Reinstatement pays the cost of replacing or repairing with new subject to sum insured; indemnity value deducts depreciation for age and wear from the replacement cost.

Standard fire policy perils

The standard fire policy covers fire, lightning, explosion of gas and aircraft impact; riot, flood, storm, earthquake and terrorism require add-on covers.

Fire claim assessment sequence

Verify policy and endorsements, confirm sum insured and basis, establish cause, quantify loss, apply deductibles and average clause, then compute the net payable.

Depreciation under indemnity basis

Under indemnity basis, depreciation is deducted from replacement cost of damaged assets; under reinstatement basis it is not deducted, but betterment and salvage are considered.

Salvage treatment in claims

Salvage value of damaged property is deducted from the assessed loss; the insurer may take over salvage or allow the insured to retain it at an agreed value.

Policy excess deduction

The policy deductible or excess is deducted from each and every loss; aggregate excess and catastrophe limits may apply to large or multi-location risks.

Stock valuation for fire claims

Stock at date of loss is established from purchase records, stock statements and average stock method to test adequacy of sum insured and apply the average clause.

Business interruption indemnity period

Consequential loss cover indemnifies gross profit lost during the indemnity period; increased cost of working is limited to the turnover saved from the loss.

Earthquake and flood verification

Confirm occurrence date and location against the policy and check the peril is not excluded; structural damage may require engineering survey for quantum assessment.

Survey report essential contents

The report states cause of loss, extent of damage, quantum with computation, and recommendation on claim, supported by photographs, invoices and valuation workings.

Motor OD document verification

Verify policy, registration certificate, driving licence, fitness certificate and permit for commercial vehicles, and confirm the driver was authorised and not excluded.

Motor depreciation application

Depreciation for plastic, rubber, glass and metal parts is applied per the policy schedule and standard percentages on labour and parts under India Motor Tariff practice.

Constructive total loss threshold

Where repair cost exceeds 75% of the IDV, the vehicle is treated as a total loss; IDV is the maximum liability, less salvage and policy excess.

Third-party motor liability

Third-party claims are governed by the Motor Vehicles Act, 1988; the surveyor assesses damage and settlement proceeds through MACT or Lok Adalat.

Motor theft claim evidence

Theft claims require an FIR, non-traceable certificate, and surrender of all keys and documents; delay in lodging the FIR can raise suspicion of fraud.

Machinery breakdown assessment

Ascertain the mechanical or electrical cause, confirm the machine was maintained and operated within rated capacity, and assess repair versus replacement cost.

CAR/EAR claim considerations

Verify the stage of construction and design responsibility; losses from defective design or workmanship are usually excluded under construction and erection all-risk covers.