IRDAI Surveyor Fire (S-02) key terms

A principle requiring both insured and insurer to disclose all material facts fully and honestly, without concealment or misrepresentation, when the contract is formed and renewed. Breach can allow the other party to avoid the policy.

A financial relationship in which the insured benefits from the continued existence of the property and suffers measurable loss from its damage or destruction. It must exist at the time of loss for indemnity to apply.

The principle that a fire claim restores the insured financially to the position occupied immediately before the loss, no better and no worse, subject to sum insured, policy limits and deductibles.

Any information that would influence a prudent underwriter in deciding whether to accept a fire risk, and on what terms. Examples include construction, occupancy, storage of hazardous goods and previous claim history.

Failure by the insured to reveal a material fact the insurer needed for underwriting, whether innocent, negligent or deliberate. It may allow cancellation or reduction of a claim depending on the breach and policy terms.

The dominant, effective and operative cause of a loss, without which the damage would not have occurred. Fire policies pay only where the proximate cause is an insured peril rather than an excluded one.

A risk expressly covered by the policy, such as fire, lightning, explosion, riot, strike, malicious damage or terrorism where endorsed. Damage must be traced to such a peril to be payable.

A clause that removes specified losses or situations from cover, for example war, nuclear risks, electrical short-circuit damage, wear and tear, or deliberate acts of the insured. Excluded damage is not payable.

The core Indian fire contract covering fire, lightning, explosion, implosion, riot, strike, malicious damage, storm, flood, inundation, subsidence, landslide, missile testing and impact damage, subject to exclusions and add-ons.

The maximum amount the insurer will pay for a loss under the policy, usually representing the value of insured property. It is the base for premium and for applying average in underinsurance cases.

The condition under which, if the sum insured at inception is less than the value of the property, the claim is reduced in the same proportion. It penalises underinsurance at the time of taking the policy.

A situation where the sum insured is lower than the actual value of the property at risk. It triggers proportional reduction of claims under the averment condition and undermines full recovery.

The amount of each loss the insured must bear before the insurer pays. It may be expressed as a fixed sum or a percentage of the claim or sum insured, and is applied after assessment.

The cost of replacing damaged property with new property of the same kind and quality, without deduction for depreciation. It applies only if the policy or add-on provides for reinstatement basis settlement.

The reduction in value of property due to age, use and wear. Under indemnity settlement, depreciation is deducted from replacement cost to arrive at the depreciated value of damaged property.

An optional extension attached by endorsement for an extra premium, such as removal of debris, architects fees, temporary repairs, or reinstatement of the sum insured. It widens the standard fire cover.

A written amendment to the policy that alters cover, sum insured, property or conditions after issue. It must be signed or approved by the insurer and forms part of the contract.

The document listing insured name, address, property insured, sum insured, premium, deductibles and period of cover. It is read together with the policy wording to establish the contract terms.

A promise or condition in the policy that must be strictly complied with, such as maintaining fire extinguishers or declaring a change in occupancy. Breach can allow the insurer to refuse a claim.

A policy requirement that the insured must satisfy before any claim is paid, for example giving immediate notice of loss or preserving damaged property for inspection. Failure may bar recovery.

Damaged property or residual material that retains value after a loss. The surveyor assesses salvage value, and the net claim is reduced by the amount realised or credited.

A method of settlement where the insured is paid the difference between the insured value and the net proceeds of salvage, rather than surrendering the damaged property to the insurer.

The systematic process of verifying the loss, determining the cause and extent of damage, quantifying the amount payable and applying policy limits, deductibles and average.

The surveyor's reasoned finding on what caused the damage, supported by physical evidence, witness accounts and documents. It links the loss to an insured peril or an exclusion.

An early survey report submitted soon after inspection, stating the nature of the loss, apparent cause and provisional reserve. It is followed by a detailed final report after full investigation.

The comprehensive report submitted at the close of investigation, containing cause, extent, assessment, deductions, salvage value and recommendation on claim payment. It supports the insurer's settlement decision.

The insured's written statement of loss giving date, time, place, cause, property affected and estimated amount. It initiates the claim and is signed to confirm accuracy of information.

The set of records supporting a claim, including claim form, policy copy, invoices, stock registers, financial statements, fire brigade report and photographs. Complete documents allow accurate assessment.

The authorisation issued by IRDAI to an individual to act as an insurance surveyor and loss assessor for specific departments and classes. Practising without a valid licence is prohibited.

The officer appointed by an insurer to deal with surveyors, assign loss assessment work and receive reports. The surveyor must route reports and correspondence through this officer.

A situation where a surveyor has a personal, financial or professional interest that could bias the assessment. Such interests must be disclosed and the assignment declined where independence is compromised.

The set of professional and ethical duties prescribed for surveyors, covering integrity, confidentiality, independence, competence, timely reporting and avoidance of rebates or commissions.

The surveyor's statement of professional charges for a loss assessment, showing work done, time spent and expenses. Fees must be reasonable and agreed with the insurer or designated officer.

The requirement for licensed surveyors to update knowledge through training and education during the licence period. It supports competence and is considered at renewal of the licence.

The official record from the fire service describing the incident, response and probable cause. It is a key independent document used by the surveyor to verify the origin and cause of a fire claim.

The burden on the insured to establish that a loss occurred and was caused by an insured peril. The surveyor evaluates whether the evidence satisfies this burden before recommending payment.

A pre-cover or renewal examination of the property to identify fire hazards, construction, occupancy and protection measures. Findings guide underwriting decisions, premium and suggested risk improvements.