Principles and Regulatory Framework
This domain tests the statutory and regulatory setting for marine insurance and loss assessment in India: the Insurance Act, 1938, the IRDA Act, 1999, IRDAI regulations and the surveyor licensing regime. Questions often test who may assess a claim, the surveyor's duties and the limits on a surveyor's role.
Core rules
- Section 64UM of the Insurance Act, 1938 requires a licensed surveyor's assessment for property claims above the prescribed threshold. The surveyor reports to the insurer; the insurer decides liability and quantum.
- The IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015 govern licensing, categories, renewal, code of conduct, records and reporting. A surveyor must work only within the licensed category and class.
- The surveyor must be independent, impartial and free from conflict. Fees must not depend on the claim amount or on a favourable finding.
- Policy wordings, endorsements and rates are filed with IRDAI as required; marine hull and cargo cover commonly use Institute clauses within the filed wording.
- Grievance redressal, policyholder protection and anti-fraud obligations apply alongside professional duties.
Worked example
An insurer appoints a retired engineer to survey a ₹90 lakh hull grounding claim. He is not a licensed surveyor. The assessment cannot satisfy the statutory surveyor requirement, and the insurer cannot rely on it as a valid survey report. The correct step is to appoint a licensed surveyor in the appropriate category; the unlicensed engineer may assist only under proper supervision and without signing the statutory report.
Traps
Do not say the surveyor 'approves' or 'settles' the claim; that is the insurer's decision. Do not ignore licence category or conflict of interest. Do not treat a surveyor's preliminary advice as a final report. Do not confuse IRDAI's regulatory role with adjudication of individual claims.