IRDAI Surveyor LOP cheat sheet

Licence categories: Surveyor and Loss Assessor licence is granted in two classes - Category A (all classes of general insurance business, including fire, marine, motor, engineering, liability and miscellaneous) and Category B (only miscellaneous business such as motor, crop, livestock, and small-value claims).

Eligibility for individual licence: minimum age 18, passed 12th standard or equivalent, and a recognised professional qualification or post-graduate diploma in insurance, plus the IRDAI-prescribed surveyor examination; practical training requirements apply to candidates without prior relevant experience.

Licence tenure and renewal: a licence is valid for three years unless suspended, cancelled or surrendered; renewal application must be filed at least 30 days before expiry, and late renewal attracts additional fee as specified by the Authority.

Composite licence for firms and companies: a firm or company may be licensed as a surveyor, but every surveyor through whom it acts must hold an individual licence and the firm must disclose all such persons to the Authority.

Code of conduct obligations: independence, no solicitation, no acceptance of any remuneration other than the professional fee from the insurer, confidentiality of claim information, and disclosure of any conflict of interest including prior relationship with the insured.

Professional indemnity: a licensed surveyor must maintain professional indemnity insurance cover of the amount prescribed by IRDAI, and the licence is liable to be suspended for non-maintenance of the required cover.

Regulatory reporting: surveyors must maintain records of surveys for the period prescribed (not less than five years), submit reports within the timelines agreed with the insurer, and furnish information to the Authority on demand.

Disciplinary powers: IRDAI may cancel or suspend a licence, impose a penalty, or debar a surveyor after giving an opportunity of hearing for violations such as misconduct, delay, false reporting or breach of the code of conduct.

Insurable interest must exist at the time of loss for indemnity-based general insurance; for marine cargo it must exist at the time of attachment of risk, which is the statutory exception.

Indemnity limits: sum insured is the maximum liability; under-declaration or under-insurance triggers average (proportionate) settlement where the policy contains an average condition, while reinstatement value policies settle on new-for-old basis subject to the sum insured.

Utmost good faith: material facts must be disclosed by the insured; non-disclosure or misrepresentation permits the insurer to avoid the contract, and fraud vitiates all claims.

Proximate cause: the nearest efficient cause of loss determines admissibility; in fire policies, losses from hostile fire are covered but losses from friendly fire (e.g., scorching by a heating appliance) are excluded.

Marine cargo clauses: Institute Cargo Clauses A is all-risks, B and C are named-perils cover; general average sacrifice and contribution are covered under all three, and the transit attaches from warehouse to warehouse as per the clause.

Motor policy structure: own-damage cover under package policy with depreciation applied by vehicle age, compulsory third-party liability under the Motor Vehicles Act, and add-ons such as zero depreciation, engine protect and return to invoice.

Exclusions and deductibles: standard exclusions include war and nuclear risks, wilful misconduct, and wear and tear; compulsory excess applies to own-damage claims and voluntary excess reduces premium.

Subrogation and contribution: after indemnifying the insured, the insurer acquires the insured's rights of recovery against third parties; where multiple policies cover the same risk, contribution applies so that no insured recovers more than the loss.

Preliminary assessment: verify policy validity on the date of loss, risk location, insured name and interest, and whether the peril falls within the operative clause before commencing detailed assessment.

Cause-of-loss determination: record physical evidence, witness statements, fire brigade or police reports, and meteorological data to establish proximate cause and exclude any excluded peril.

Loss quantification: for property claims, apply depreciation to arrive at the assessed loss, deduct salvage value, apply the policy excess and any average clause, and compare with the sum insured.

Average clause formula: admissible claim = (sum insured / value at risk at time of loss) × assessed loss, applied only when the policy contains an average or under-insurance condition.

Salvage handling: salvage must be valued and either deducted from the loss or disposed of with insurer consent; the insured cannot retain salvage and also claim full loss.

Documentation checklist: claim form, policy copy, invoices and purchase records, books of account, repair estimates, FIR or fire report, photographs, and statements recorded under the insurer's authority.

Survey report content: insured and policy particulars, risk description, date and time of loss, cause, assessment of loss with workings, deductions, net payable, and recommendations on liability with reasons.

Timelines and fraud indicators: report within the period agreed with insurer; flag indicators such as recent policy inception, inflated stock statements, absence of third-party corroboration, and discrepancy between declared and physical stock.

Independence: a surveyor must act solely in a professional capacity and must not accept any commission, gift or benefit from repairers, suppliers or the insured that could influence the assessment.

Conflict of interest: decline or disclose any assignment where the surveyor, or a relative or associate, has a financial interest in the insured, the property or the loss.

Confidentiality: claim information may be disclosed only to the insurer, the insured with insurer consent, or the regulator; it must not be used for personal advantage.

Policyholders' protection: the insured is entitled to a copy of the survey report on request, to be informed of the basis of settlement, and to have the claim processed fairly, promptly and transparently.

Grievance redressal: unresolved complaints go to the insurer's Grievance Redressal Officer, then to IRDAI's Integrated Grievance Management System, and thereafter to the Insurance Ombudsman within the territorial jurisdiction and monetary limits.

Anti-fraud duty: a surveyor must report suspected fraudulent claims to the insurer and must never certify a loss that has not been verified or that exceeds the actual loss suffered.

Record keeping and audit trail: retain working papers, photographs, measurements and correspondence supporting the assessment so that the report can be defended in litigation or regulatory scrutiny.

Professional competence: a surveyor must accept only assignments within the licensed category and area of competence, and must keep knowledge current with policy wordings and regulatory changes.

The IRDAI surveyor examination is a prerequisite for the licence; passing it does not by itself confer a licence - the candidate must also satisfy qualification, training and fee requirements.

Practical training: candidates without prior experience in loss assessment undergo training with a licensed surveyor or an insurer for the period specified by the Authority, and a certificate of training is required with the application.

Category A licence permits survey of all general insurance classes, while Category B is restricted to miscellaneous classes; a Category B surveyor cannot survey large fire or engineering losses.

Licence fees and application: application is made to IRDAI in the prescribed form with the prescribed fee, and incomplete applications are liable to be returned without processing.

Change of particulars: any change in address, qualification, employment or constitution of a licensed firm must be intimated to the Authority within the prescribed period.

Surrender and cancellation: a surveyor may surrender the licence, and the Authority may cancel it for misconduct after following the prescribed procedure including a hearing.

Display of licence: the licence particulars, including category and validity, must be available for inspection by the insurer and the Authority on request.

Continuing obligations: maintain the prescribed professional indemnity cover, comply with the code of conduct, and refrain from acting as an agent or intermediary in the same transaction.

Claim registration: the insurer must register every claim on receipt and communicate the claim number and the documents required to the insured without delay.

Cashless and reimbursement: in health and motor claims, cashless settlement is processed through network providers while reimbursement requires original bills and discharge documents.

Motor total loss: a vehicle is treated as a constructive total loss where the repair cost exceeds 75 per cent of the insured declared value, and settlement is on the IDV less salvage and excess.

Health claim assessment: pre-authorisation, room-rent limits, sub-limits, waiting periods for pre-existing diseases and the deductible are applied before arriving at the admissible amount.

Fire and property claims: verify stock and fixed asset registers, apply average if under-insured, and obtain the insured's consent to the assessed loss before the insurer settles.

Third-party motor claims: liability is determined by the Motor Accident Claims Tribunal, and the insurer's liability is subject to the statutory limit for the policy in force.

Repudiation: a claim may be rejected only on specific grounds stated in the policy or law, and the reasons must be communicated in writing to the insured with reference to the relevant clause.

Settlement timelines: the insurer must settle or reject a claim within the period prescribed under the policy and the applicable regulations, failing which interest may be payable as specified.

When the assessed loss exceeds the sum insured, the sum insured is the maximum payable and the report must state this cap explicitly rather than recommending an ex-gratia amount.

Where the insured offers entertainment, gifts or travel to influence the assessment, the surveyor must decline, record the offer, and report it to the insurer.

If the insurer instructs a surveyor to adopt a conclusion not supported by evidence, the surveyor must record the factual position and decline to certify an unsupported figure.

Any prior employment with the insured or with the insurer within the prescribed cooling-off period must be disclosed before accepting the assignment.

A surveyor must not act as both surveyor and loss assessor in a manner that creates self-review, and must not assess a loss in which the surveyor arranged the insurance.

Photographic and documentary evidence must be preserved in original form; altering or recreating records after the survey is a disciplinary offence.

Where a claim is partly admissible, the report should separate admitted and rejected components with reasons, so the insured can understand the basis of settlement.

IRDAI is the statutory regulator under the Insurance Regulatory and Development Authority Act, 1999, with powers to license, regulate and discipline surveyors and insurers.

The Insurance Act, 1938 provides the substantive framework for survey of losses, and section 64UM requires that losses above the prescribed amount be surveyed by a licensed surveyor before settlement.

Insurance Ombudsman: complaints on claim settlement and policy servicing can be filed within one year of rejection, subject to the monetary limit prescribed for the Ombudsman scheme, and the award is binding on the insurer if accepted by the complainant.

IGMS: the Integrated Grievance Management System is IRDAI's online portal for tracking complaints against insurers, with escalation timelines for resolution.

Penalties for insurers: failure to comply with surveyor-related and claim-settlement obligations can attract penalties, directions and policyholder-protection orders from the Authority.

Consumer protection: policyholders may also approach consumer commissions for deficiency in service, in addition to the regulatory grievance channels.

Regulatory changes: IRDAI issues regulations, circulars and master circulars that update surveyor requirements, and compliance must reflect the position in force on the date of the survey.

Depreciation method: depreciated value = original cost × (1 − rate of depreciation)^years of use, or the straight-line rate applied by the insurer's depreciation schedule for the asset class.

Average clause: if sum insured is 80 and value at risk is 100, a loss of 40 is settled at 80/100 × 40 = 32, before excess.

Excess and deductible: net payable = assessed loss − policy excess − voluntary excess; a deductible is applied per claim, not per item, unless the policy states otherwise.

Salvage deduction: net payable = assessed loss − salvage value; if the insurer allows the insured to retain salvage, the retained value is deducted from the claim.

Reinstatement value: settlement is on new-for-old basis for the damaged property, subject to the sum insured being adequate on reinstatement basis; otherwise average applies on reinstatement value.

Motor IDV: IDV = ex-showroom price × depreciation factor for the vehicle's age, and total-loss settlement is IDV − salvage − excess, subject to the policy terms.

Marine general average: contribution is apportioned among cargo, ship and freight in proportion to the values saved, and the surveyor must verify the adjustment statement.

Business interruption: loss = gross profit rate × reduction in turnover + increased cost of working, subject to the sum insured on gross profit and the indemnity period.

Fire loss investigation: determine the seat and cause of fire, distinguish hostile from friendly fire, check electrical short-circuit evidence, and obtain the fire brigade report and cause-of-fire certificate.

Burglary claims: verify forced entry, the FIR, the list of stolen property against purchase records and stock registers, and check whether the theft was by an employee or a family member, which is usually excluded.

Marine loss: distinguish particular average, general average and total loss; verify bill of lading, invoice, packing list and survey at destination, and check the transit period and packing warranty.

Engineering claims: for contractor's all-risk and erection all-risk, check the project schedule, testing and commissioning exclusions, and whether the loss arose from a design defect, which is usually excluded.

Liability claims: establish the legal liability, negligence, quantum of damages and the policy limit, and check whether the claim falls within the retroactive date and the territorial scope.

Crop and livestock claims: verify the area sown, yield data, veterinary certificate and identification of the animal, and apply the government notification or the policy's claim-assessment table.

Weather and catastrophe: corroborate with meteorological records, rainfall data and satellite imagery, and assess whether the event meets the policy definition of a catastrophe or named peril.

Causation hierarchy: identify the dominant and effective cause where multiple perils operate, and apply the exclusion that applies to the proximate cause, not to a remote cause.

Interim report: submit a preliminary report to the insurer immediately where the loss is large or the cause is unclear, stating the facts established so far and further investigation required.

Final report structure: policy particulars, insured and risk details, incident narrative, cause, quantum with workings, deductions, net recommendation, and annexures of evidence.

Language and clarity: write in plain language, avoid conclusory statements without evidence, and state the basis of every figure so the insurer and insured can follow the calculation.

Evidence integrity: number photographs, record the date, time and location, and retain the original digital files; do not crop or edit images used in the report.

Statements: record statements of the insured and witnesses in their own words, obtain signatures, and note the date and place of recording.

Coordination: correspond with the insurer in writing, obtain written approval before incurring survey expenses beyond the sanctioned limit, and bill fees as per the agreed scale.

Reopening and supplementary reports: if new evidence emerges, issue a supplementary report clearly linked to the original, and do not alter the original report retrospectively.

Right to information: the insured is entitled to know the policy terms, the claim requirements, the survey findings and the reasons for any reduction or rejection.

Free look period: for policies with a free look provision, the insured may return the policy within the stated period for a refund of premium subject to the deductions specified.

Nomination and assignment: the insured may nominate a beneficiary and assign the policy as per the policy conditions, and the insurer must record these changes.

Mis-selling protection: the insurer and intermediaries must explain the product suitability, and the surveyor must not participate in any misrepresentation of cover.

Claim documents: the insurer must request only documents relevant to the claim and must not demand documents that are impossible for the insured to produce.

Vulnerable customers: claims involving elderly, illiterate or differently abled insureds require clear explanation and, where needed, assistance in completing documentation.

Data privacy: personal and health data collected during claims must be used only for claim processing and protected from unauthorised disclosure.

Grounds for suspension: misconduct, failure to comply with the code of conduct, non-maintenance of professional indemnity cover, delay in submitting reports, and submission of false or misleading reports.

Procedure: the Authority issues a show-cause notice, considers the reply and hearing, and passes a reasoned order; suspension or cancellation must be proportionate to the violation.

Effect of cancellation: the surveyor cannot undertake fresh surveys, but must cooperate with the insurer in completing pending assignments and hand over records.

Appeal: an aggrieved surveyor may prefer an appeal against the order of the Authority as provided under the Insurance Act and the IRDA Act, within the prescribed period.

Restoration: a cancelled licence may be restored only on a fresh application and on satisfying the Authority that the grounds for cancellation no longer exist.

Insurer's duty: insurers must not assign surveys to unlicensed or suspended surveyors, and must report suspected misconduct to the Authority.

Penalties: contravention may attract monetary penalties in addition to licence action, and repeated violations can lead to debarment from the profession.

Standard fire and special perils policy covers fire, lightning, explosion, riot and strike, storm and flood, and impact damage, while excluding war, nuclear risks and pollution unless endorsed.

Marine hull policy: covers physical damage to the vessel, and the claim trigger is the peril insured against, with due diligence and seaworthiness warranties applying.

Motor third-party property damage: the insurer's liability is actual damage to the third-party property, subject to the limit for the policy, and the surveyor assesses the third-party vehicle damage.

Public liability and product liability: the trigger is legal liability for bodily injury or property damage occurring during the policy period, with a claims-made or occurrence basis stated in the policy.

Workmen's compensation and employee liability: the trigger is the statutory liability under the applicable labour law, and quantum follows the statutory wage and disability schedules.

Crop insurance: claims are triggered by yield shortfall against the threshold yield, assessed through crop-cutting experiments and notified area data.

Health indemnity: the trigger is hospitalisation for a covered illness or injury, and the admissible amount is the actual expense subject to sub-limits and the deductible.

Travel insurance: the trigger is the insured event during the trip, and the policy is typically claims-made with a reporting period after the trip for delayed claims.

Red flags at inception: policy taken shortly before the loss, sum insured disproportionately high for the risk, and previous claims history with multiple insurers.

Red flags at loss: inconsistent narrative across statements, absence of witnesses, damage pattern inconsistent with the stated cause, and fresh paint or repairs before the survey.

Document fraud: altered invoices, duplicate bills, inflated stock statements, and purchase records that do not match the claimed assets.

Verification steps: cross-check with GST returns, bank statements, purchase registers, and third-party records such as hospital or police documents.

Medical fraud: verify hospital records, treatment dates, discharge summary and pre-authorisation, and check for unrelated or pre-existing conditions.

Interview technique: record statements separately, compare timelines, and ask open questions before confronting inconsistencies.

Reporting: document the fraud indicators factually in the report and recommend further investigation rather than making an accusation in the report.

Fee basis: survey fees are charged as per the scale agreed with the insurer, commonly a percentage of the assessed loss or a fixed fee for small claims, and must be disclosed in the report.

Expenses: travel, photography and testing costs are reimbursed only when approved in advance by the insurer and supported by bills.

No contingent fee: a surveyor must not accept a fee contingent on the amount of the claim admitted, as this compromises independence.

Billing discipline: raise invoices with the claim reference, survey dates and the fee calculation, and avoid billing for surveys not actually conducted.

Multiple surveyors: where more than one surveyor is appointed, the fee is shared as agreed and the report is jointly signed or clearly attributed.

Records: maintain a register of surveys with claim number, date, fee and report submission date for inspection by the Authority.

Insurers must appoint licensed surveyors for losses above the prescribed threshold and cannot settle such claims without a survey report.

The Authority prescribes the manner of claim settlement, timelines and grievance handling through regulations and master circulars applicable to insurers.

Intermediaries such as brokers and agents must be licensed and must disclose commissions, and a surveyor cannot act as an intermediary in the same transaction.

Corporate agents and web aggregators are governed by their own regulations, and their conduct standards mirror the fair-treatment principles applicable to surveyors.

Insurer governance: the board must have a policyholders' protection committee and a grievance redressal mechanism as prescribed.

Reporting to the Authority: insurers submit claim and grievance data periodically, and non-compliance attracts penalties and directions.

Where the insured has not disclosed a prior claim, the surveyor must report the non-disclosure and let the insurer decide on avoidance; the surveyor does not decide coverage.

Where the loss is caused by an excluded peril but a covered peril also contributed, apply the proximate cause rule and document the reasoning.

Where the sum insured is inadequate but the policy has no average clause, settlement is limited to the sum insured and no proportionate reduction is applied.

Where the insured refuses access to records, record the refusal in the report and recommend that the insurer seek the documents before settlement.

Where a claim is time-barred under the policy's limitation clause, the surveyor must still assess the loss if instructed, and separately flag the limitation issue.

Where the insurer and insured agree on a negotiated settlement, the surveyor records the assessed loss and notes the negotiated figure separately.

Where the cause of loss cannot be determined, the report must state the inconclusive finding and the evidence gap, not infer a convenient cause.

Own-damage assessment: verify the vehicle registration, driving licence, fitness and permit, and check that the driver held a valid licence at the time of the accident.

Depreciation on parts: apply the insurer's depreciation schedule by part type and vehicle age, and add labour charges at the approved rate.

Total loss and salvage: compute the repair cost, compare with the IDV, and where repair exceeds 75 per cent of IDV, settle on total-loss basis with salvage deduction.

Third-party injury: assess medical expenses, loss of income, pain and suffering and future prospects as per the Motor Accident Claims Tribunal approach, within the policy limit.

Third-party property: assess the actual repair cost of the third-party vehicle and apply the policy limit for third-party property damage.

Fraud checks: verify the accident spot, the FIR, the repair estimate from an authorised workshop, and the vehicle's pre-accident condition.

Documentation: collect the claim form, FIR, driving licence, RC, repair estimate, photographs and the discharge summary for injury claims.

Hospitalisation claim: verify the policy, waiting periods, room-rent limit, sub-limits, and whether the treatment is covered or excluded.

Pre-authorisation: cashless claims require pre-authorisation from the insurer's network provider, and emergency admissions must be intimated within the prescribed time.

Pre-existing disease: claims arising from a pre-existing condition are excluded until the waiting period is completed, and the surveyor must verify the medical history.

Personal accident: the trigger is accidental bodily injury resulting in death or disability, and the benefit is a percentage of the sum insured as per the policy's disability table.

Permanent total disability: the benefit is the full sum insured where the policy so provides, and the surveyor must verify the medical board certificate.

Fraud checks: verify hospital records, treatment dates, discharge summary and pre-authorisation, and check for unrelated or pre-existing conditions.

Cargo cover: check the Institute Cargo Clauses applicable (A, B or C), the transit period, the warehouse-to-warehouse attachment, and the packing and seaworthiness warranties.

Particular average: partial loss of cargo is settled on the basis of the damaged value against the sound value, subject to the sum insured.

General average: the sacrifice is apportioned among cargo, ship and freight, and the surveyor must verify the adjustment statement and the contribution due.

Total loss: actual total loss where the cargo is destroyed, and constructive total loss where the cost of repair or forwarding exceeds the value on arrival.

Documentation: bill of lading, invoice, packing list, survey report at destination, and the carrier's exception report.

Exclusions: delay, inherent vice, insufficient packing and ordinary leakage are excluded, and the surveyor must distinguish these from the insured peril.

Fire claim: determine the seat and cause of fire, obtain the fire brigade report and cause-of-fire certificate, and distinguish hostile from friendly fire.

Stock verification: verify stock registers, purchase and sales records, and the stock statement submitted to the bank, and apply average if under-insured.

Fixed assets: verify the asset register, depreciation, and whether the policy is on reinstatement or market value basis.

Business interruption: compute the gross profit rate, the reduction in turnover and the increased cost of working, subject to the indemnity period.

Salvage: value the salvage and either deduct it from the loss or dispose of it with insurer consent.

Exclusions: war, nuclear risks, pollution and wilful misconduct are excluded, and the surveyor must rule them out explicitly.

Public liability: the trigger is legal liability for bodily injury or property damage occurring during the policy period, and the surveyor must establish negligence and quantum.

Product liability: the trigger is liability arising from a defective product, and the surveyor must verify the defect, causation and the policy limit.

Professional indemnity: the trigger is a claim made during the policy period for a negligent act, and the retroactive date and the territorial scope must be checked.

Contractor's all-risk: the policy covers damage to the works and third-party liability during construction, and testing and commissioning exclusions apply.

Erection all-risk: the policy covers erection and testing, and design defects are usually excluded unless endorsed.

Documentation: contract documents, project schedule, test reports, accident reports and third-party claim notices.

Crop insurance: claims are triggered by yield shortfall against the threshold yield, assessed through crop-cutting experiments and notified area data.

Livestock: verify the animal's identification, the veterinary certificate and the cause of death, and check the policy's valuation basis.

Micro-insurance: policies are issued in simple language with low sums insured, and the surveyor must apply the simplified claim procedure.

Weather index: claims are triggered by the weather parameter crossing the trigger level, and the surveyor verifies the weather station data.

Documentation: land records, sowing certificate, veterinary certificate, post-mortem report and the insurer's claim form.

Fraud checks: verify the area sown, the animal's identity and the weather data against the official records.

Structure: policy particulars, insured and risk details, incident narrative, cause, quantum with workings, deductions, net recommendation and annexures.

Clarity: write in plain language, avoid conclusory statements without evidence, and state the basis of every figure.

Evidence: number photographs, record the date, time and location, and retain the original digital files.

Statements: record statements of the insured and witnesses in their own words, obtain signatures, and note the date and place of recording.

Recommendation: state the liability position with reasons and separate the admitted and rejected components of the claim.

Timelines: submit the report within the period agreed with the insurer, and issue a supplementary report if new evidence emerges.

Record retention: maintain survey records for not less than five years, and make them available to the Authority on demand.

Reporting to the insurer: submit the report within the agreed timeline and keep the insurer informed of any delay with reasons.

Reporting to the Authority: furnish information and documents on demand, and cooperate with inspections and investigations.

Change of particulars: intimate any change in address, qualification or employment to the Authority within the prescribed period.

Professional indemnity: maintain the cover and produce the certificate on demand.

Billing records: maintain a register of surveys with claim number, date, fee and report submission date.

Insurer's grievance officer: the first level of redressal for a complaint against the insurer.

IGMS: IRDAI's online portal for tracking complaints against insurers, with escalation timelines for resolution.

Insurance Ombudsman: complaints on claim settlement and policy servicing can be filed within one year of rejection, subject to the monetary limit, and the award is binding on the insurer if accepted by the complainant.

Consumer commissions: policyholders may approach consumer commissions for deficiency in service, in addition to the regulatory channels.

Surveyor's role: provide the report and the basis of settlement to the insurer, and cooperate with the grievance process.

Fair treatment: the insured is entitled to a copy of the survey report on request and to be informed of the basis of settlement.

Independence: act solely in a professional capacity and do not accept any commission, gift or benefit that could influence the assessment.

Conflict of interest: decline or disclose any assignment where the surveyor, or a relative or associate, has a financial interest in the insured, the property or the loss.

Confidentiality: disclose claim information only to the insurer, the insured with insurer consent, or the regulator.

Anti-fraud duty: report suspected fraudulent claims to the insurer and never certify a loss that has not been verified.

No contingent fee: do not accept a fee contingent on the amount of the claim admitted.

Record keeping: retain working papers, photographs, measurements and correspondence supporting the assessment.

Warranty: a policy condition that must be complied with exactly, and breach entitles the insurer to avoid the claim.

Condition precedent: a condition that must be satisfied before the insurer's liability arises, such as the disclosure of material facts.

Average condition: where the sum insured is less than the value at risk, the claim is reduced proportionately.

Excess and deductible: the first amount of each claim borne by the insured, applied per claim unless the policy states otherwise.

Subrogation: after indemnifying the insured, the insurer acquires the insured's rights of recovery against third parties.

Contribution: where multiple policies cover the same risk, no insured recovers more than the loss.

Depreciation method: depreciated value = original cost × (1 − rate of depreciation)^years of use.

Average clause: if sum insured is 80 and value at risk is 100, a loss of 40 is settled at 80/100 × 40 = 32, before excess.

Excess and deductible: net payable = assessed loss − policy excess − voluntary excess.

Salvage deduction: net payable = assessed loss − salvage value.

Reinstatement value: settlement is on new-for-old basis, subject to the sum insured being adequate on reinstatement basis.

Business interruption: loss = gross profit rate × reduction in turnover + increased cost of working.

Physical evidence: record the seat of fire, damage pattern, and the condition of the property before and after the loss.

Witness statements: record statements separately, compare timelines, and ask open questions before confronting inconsistencies.

Document verification: cross-check with GST returns, bank statements, purchase registers and third-party records.

Weather data: corroborate with meteorological records, rainfall data and satellite imagery.

Photographic evidence: number photographs, record the date, time and location, and retain the original digital files.

Reporting: document the fraud indicators factually in the report and recommend further investigation.

Insurable interest: must exist at the time of loss for indemnity-based general insurance, and at the time of attachment of risk for marine cargo.

Utmost good faith: material facts must be disclosed, and non-disclosure or misrepresentation permits the insurer to avoid the contract.

Indemnity: the insured is restored to the financial position before the loss, subject to the sum insured and the policy conditions.

Proximate cause: the nearest efficient cause of loss determines admissibility.

Subrogation and contribution: no insured recovers more than the loss, and the insurer acquires recovery rights against third parties.

Exclusions: war, nuclear risks, wilful misconduct and wear and tear are standard exclusions.