IRDAI Surveyor LOP flashcards

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

Surveyor licence validity

A surveyor and loss assessor licence is valid for three years unless suspended, cancelled or surrendered, and renewal must be applied for at least 30 days before expiry.

Category A licence

Permits survey of all classes of general insurance business, including fire, marine, motor, engineering, liability and miscellaneous lines, subject to the licence conditions.

Category B licence

Restricts the surveyor to miscellaneous classes such as motor, crop, livestock and small-value claims, and does not permit large fire or engineering surveys.

Professional indemnity requirement

A licensed surveyor must maintain professional indemnity cover of the amount prescribed by IRDAI, and non-maintenance is a ground for licence suspension.

Insurable interest in marine cargo

For marine cargo, insurable interest must exist at the time of attachment of risk, which is the statutory exception to the general rule requiring interest at the time of loss.

Average clause formula

Admissible claim equals sum insured divided by value at risk at the time of loss, multiplied by the assessed loss, applied only when the policy contains an average condition.

Proximate cause rule

The nearest efficient cause of the loss determines admissibility, so a covered peril must be the dominant cause and not merely a remote contributing factor.

Institute Cargo Clauses A

An all-risks marine cargo cover that insures all perils except those specifically excluded, in contrast to the named-perils B and C clauses.

Motor total loss threshold

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 IDV less salvage and excess.

Survey report content

The report states policy particulars, risk details, date and cause of loss, assessment with workings, deductions, net payable and a reasoned recommendation on liability.

Salvage handling

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

Preliminary survey step

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

Surveyor 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 disclosure

A surveyor must 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.

Insurance Ombudsman jurisdiction

Complaints on claim settlement can be filed within one year of rejection, subject to the prescribed monetary limit, and the award binds 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.

Surveyor examination prerequisite

Passing the IRDAI surveyor examination is necessary but not sufficient for a licence; the candidate must also satisfy qualification, training and fee requirements.

Change of particulars intimation

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

Section 64UM survey requirement

Under the Insurance Act, 1938, losses above the prescribed amount must be surveyed by a licensed surveyor before the insurer settles the claim.

Depreciation formula

Depreciated value equals original cost multiplied by one minus the rate of depreciation raised to the number of years of use, or the straight-line rate in the insurer's schedule.

Net payable calculation

Net payable equals assessed loss minus policy excess minus voluntary excess minus salvage value, applied in that order unless the policy states otherwise.

Business interruption loss formula

Loss equals gross profit rate multiplied by reduction in turnover, plus increased cost of working, subject to the sum insured on gross profit and the indemnity period.

Hostile versus friendly fire

Fire policies cover losses from hostile fire but exclude losses from friendly fire, such as scorching by a heating appliance or a fire confined to its intended place.

Burglary claim verification

Verify forced entry, the FIR, the stolen property list against purchase records and stock registers, and check whether the theft was by an employee or family member.

General average contribution

A sacrifice is apportioned among cargo, ship and freight in proportion to the values saved, and the surveyor must verify the adjustment statement and contribution due.

Interim survey report

A preliminary report submitted immediately where the loss is large or the cause is unclear, stating facts established so far and further investigation required.

Evidence integrity

Photographs must be numbered with date, time and location recorded, and original digital files retained without cropping or editing for use in the report.

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 specified deductions.

Grounds for licence suspension

Misconduct, breach of the code of conduct, non-maintenance of professional indemnity cover, delay in reports and false reporting can lead to suspension or cancellation after a hearing.

Crop insurance claim trigger

Claims are triggered by yield shortfall against the threshold yield, assessed through crop-cutting experiments and notified area data rather than individual field inspection alone.

Claim fraud red flags

Recent policy inception, inflated stock statements, inconsistent narratives, absence of witnesses and damage patterns inconsistent with the stated cause indicate possible fraud.

Contingent fee prohibition

A surveyor must not accept a fee contingent on the amount of the claim admitted, because it compromises independence and the duty to assess the actual loss.