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IRDAI Surveyor Miscellaneous (S-07) study materials
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IRDAI Surveyor Miscellaneous (S-07) practice questions

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Question 1Miscellaneous

Under the IRDAI (Surveyors and Loss Assessors) framework, a surveyor holding a licence to survey motor claims is generally restricted from surveying which of the following without an appropriate endorsement?

  1. Private car own-damage claims
  2. Two-wheeler theft claims
  3. Commercial vehicle third-party property damage claims
  4. Marine hull claims Correct answer.

Explanation

Surveyor licences are issued for specified classes of business such as fire, marine and motor, and a surveyor may act only within the class or classes endorsed on the licence. Marine hull falls under the marine class and requires that endorsement, whereas the motor-related options fall within the motor class. Acting outside the endorsed class breaches the licence conditions.

Question 2Miscellaneous

A surveyor is appointed on a fire claim where the insured's stock records are incomplete. Which action best reflects the surveyor's professional duty when reporting the loss?

  1. Recommend the claim be rejected outright
  2. Adopt the insured's claimed figure as the loss amount
  3. Report only the physical damage and omit the records gap
  4. State the basis of assessment and quantify the effect of the missing records Correct answer.

Explanation

A surveyor's report must disclose the basis on which the loss has been assessed and any limitations in the available evidence. Where records are incomplete, the surveyor should explain the gap and quantify how it affects the assessed amount rather than silently accepting or ignoring it. This preserves the insurer's ability to decide the claim on an informed basis.

Question 3Miscellaneous

Which body is responsible for issuing and renewing licences to insurance surveyors and loss assessors in India?

  1. General Insurance Corporation of India
  2. Insurance Regulatory and Development Authority of India Correct answer.
  3. Insurance Institute of India
  4. National Insurance Academy

Explanation

The IRDAI is the statutory regulator empowered under the Insurance Act to license surveyors and loss assessors and to regulate their conduct. The other bodies provide education, training or reinsurance services and have no licensing authority. Licence applications and renewals are therefore processed through the Authority.

Question 4Miscellaneous

An insurer appoints a surveyor on a claim of Rs 60,000 under a policy where the surveyor's fee would exceed the claim amount. What is the most appropriate course consistent with the regulatory framework?

  1. The surveyor must always be appointed regardless of cost
  2. The claim must be referred to the IRDAI for approval
  3. The insurer may handle the claim without a surveyor where the regulations permit Correct answer.
  4. The insured must pay the surveyor's fee directly

Explanation

The regulations permit insurers to settle certain small or low-value claims without appointing a surveyor, subject to their own delegated authority norms. Mandatory survey does not apply to every claim irrespective of value. The insurer, not the insured, bears survey fees where a surveyor is appointed.

Question 5Miscellaneous

Which of the following best describes the concept of 'salvage' in the context of a surveyor's report on a total loss?

  1. The premium refundable on cancellation
  2. The residual value of damaged property that can be realised Correct answer.
  3. The excess deducted from the claim
  4. The reinstatement cost of the property

Explanation

Salvage refers to the residual worth of damaged property that remains after a loss and can be sold or retained. A surveyor assesses and reports salvage so that the insurer can deduct its realisable value from the gross loss. It is distinct from policy excess or premium adjustments.

Question 6Miscellaneous

In assessing a machinery breakdown claim, the surveyor finds that the insured operated the machine beyond rated capacity, which caused the failure. How should this be reported?

  1. As a manufacturing defect covered under the policy
  2. As an accidental breakdown with no comment
  3. As a breach of policy conditions that may affect liability Correct answer.
  4. As normal wear and tear excluded from cover

Explanation

Operating equipment beyond its rated capacity is a breach of the care and maintenance conditions typically found in engineering policies. The surveyor should report the causal finding and flag the liability implication for the insurer. The surveyor states facts and causation; the insurer decides on repudiation.

Question 7Miscellaneous

What is the primary purpose of the surveyor's preliminary or interim report?

  1. To satisfy the insured's documentation requirements
  2. To give the insurer early notice of the nature and extent of loss Correct answer.
  3. To close the claim file quickly
  4. To finalise the exact claim amount payable

Explanation

An interim report informs the insurer early about the nature, cause and approximate extent of the loss so that reserves and further action can be planned. The final assessment of quantum comes in the final report after full investigation. It is not intended to close the file or finalise payment.

Question 8Miscellaneous

A surveyor is asked to assess a marine cargo claim where the consignment was damaged by seawater during transit. Which factor is most relevant to determining whether the loss is covered?

  1. The colour of the packing cases
  2. Whether the damage falls within the risks covered by the marine policy terms Correct answer.
  3. The number of years the insured has held the policy
  4. The insured's annual turnover

Explanation

Coverage in marine cargo depends on whether the peril causing the damage is among the risks insured under the policy terms. The surveyor must establish causation and match it to the insured perils. Turnover and policy tenure do not determine coverage of a specific peril.

Question 9Miscellaneous

Under the regulatory framework for surveyors, which of the following is a key eligibility requirement for a person applying for a surveyor's licence?

  1. Ownership of a registered insurance company
  2. Minimum prescribed qualification and experience in the relevant class Correct answer.
  3. Membership of a political party
  4. Residence in the insurer's head-office city

Explanation

Applicants must satisfy the prescribed educational qualification and practical experience requirements relevant to the class of business for which the licence is sought. These ensure technical competence to assess losses. Political affiliation, company ownership or residence near an insurer's office are not licensing criteria.

Question 10Miscellaneous

A surveyor discovers during investigation that the insured has submitted an inflated invoice for the damaged goods. What is the appropriate professional response?

  1. Confront the insured and settle the matter privately
  2. Ignore the invoice and use market value without comment
  3. Report the discrepancy and its effect on the assessed loss to the insurer Correct answer.
  4. Adjust the invoice quietly and proceed

Explanation

The surveyor's duty is to report material facts, including evidence of exaggeration, to the insurer so that it can consider the claim fairly and apply policy conditions. Private settlement or silent adjustment would compromise independence and conceal a material finding. The report should quantify the effect of the discrepancy.

Question 11Miscellaneous

What does 'depreciation' mean when applied by a surveyor in settling a motor own-damage claim?

  1. The deduction for policy excess
  2. The reduction applied for age and condition of the damaged parts Correct answer.
  3. The discount given by the repairer
  4. The insurer's administrative charge

Explanation

Depreciation reflects the reduction in value of parts due to age and wear, and is applied when the policy settles on a market-value basis. It is distinct from the policy excess, which is a contractual deductible. Repairer discounts and administrative charges are separate commercial matters.

Question 12Miscellaneous

A fire policy contains an average (under-insurance) clause. The surveyor assesses the actual loss at Rs 8 lakh, the sum insured is Rs 15 lakh and the property's actual value is Rs 20 lakh. Applying average, what amount is admissible before other deductions?

  1. Rs 6,00,000 Correct answer.
  2. Rs 4,00,000
  3. Rs 15,00,000
  4. Rs 8,00,000

Explanation

Under the average clause the claim is reduced in the proportion that the sum insured bears to the actual value: 15/20 = 0.75. Applying this to the loss of Rs 8 lakh gives Rs 6 lakh. This penalises under-insurance by making the insured bear a share of the loss.

Question 13Miscellaneous

Which of the following best explains the surveyor's duty of independence?

  1. The surveyor must follow the insured's instructions on quantum
  2. The surveyor must always support the insurer's position
  3. The surveyor must assess and report without being influenced by either party's commercial interest Correct answer.
  4. The surveyor must consult the repairer before finalising the report

Explanation

Independence requires the surveyor to form an objective view based on evidence and to report it honestly, regardless of pressure from the insurer or the insured. The role is quasi-judicial in nature, serving the truth of the loss. Aligning with either party's commercial interest undermines that role.

Question 14Miscellaneous

A surveyor is appointed to assess a claim but has a close family relationship with the insured's managing director. What is the correct course of action?

  1. Decline the appointment and disclose the conflict of interest Correct answer.
  2. Proceed and disclose the relationship only in the final report
  3. Proceed without disclosure as the relationship is personal
  4. Ask the insured to confirm there is no objection

Explanation

A surveyor must avoid appointments where a conflict of interest exists or could reasonably be perceived. Where such a relationship exists, the surveyor should decline the appointment and disclose the reason to the insurer so that an independent surveyor can be appointed. Disclosing only later or relying on the insured's consent does not cure the conflict.

Question 15Miscellaneous

In the context of a surveyor's report, what is meant by 'causation'?

  1. The number of claimants involved
  2. The date on which the policy commenced
  3. The proximate cause of the loss and whether it is an insured peril Correct answer.
  4. The total value of the claim

Explanation

Causation concerns identifying the proximate cause of the loss and determining whether that cause falls within the insured perils or an exclusion. It is a central analytical task in every survey. Policy dates and claim values are separate matters.

Question 16Miscellaneous

A surveyor assessing a business interruption claim must primarily determine which of the following?

  1. The reduction in gross profit and increased cost of working caused by the insured peril Correct answer.
  2. The policy excess applicable to the claim
  3. The replacement cost of the damaged building
  4. The salvage value of the damaged stock

Explanation

Business interruption cover indemnifies loss of gross profit and additional expenditure incurred to maintain operations following an insured peril. The surveyor must quantify the reduction in turnover and the increased cost of working. Building replacement cost and stock salvage relate to material damage, not interruption loss.

Question 17Miscellaneous

Which of the following is a recognised ground on which the IRDAI may take action against a licensed surveyor?

  1. Professional misconduct or violation of licence conditions Correct answer.
  2. Submitting reports in the prescribed format
  3. Charging fees within the approved scale
  4. Completing a survey within the agreed time

Explanation

The regulator may suspend or cancel a licence for professional misconduct, breach of licence conditions or failure to comply with regulations. Acting in accordance with the prescribed format, fee scale and timelines is compliant conduct, not a ground for action. The disciplinary power protects the integrity of loss assessment.

Question 18Miscellaneous

A surveyor finds that a fire loss was caused by the insured deliberately setting the premises alight. How should this be reflected in the report?

  1. Report the loss as accidental to protect the insured
  2. Omit the finding and let the insurer investigate separately
  3. Report the finding of deliberate act with supporting evidence Correct answer.
  4. Report only the quantum of damage

Explanation

Where evidence points to a deliberate act by the insured, the surveyor must report that finding and the supporting evidence so the insurer can consider its liability position. Concealing or mischaracterising the cause would be a serious breach of professional duty. The surveyor's role is to establish and report the facts.

Question 19Miscellaneous

What is meant by 'reinstatement value' in property insurance assessment?

  1. The market value of the property at the time of loss
  2. The scrap value of the damaged property
  3. The original purchase price of the property
  4. The cost of replacing the damaged property with new property of similar kind without deducting depreciation Correct answer.

Explanation

Reinstatement value is the cost of replacing or rebuilding the damaged property with new material of similar kind and quality, without deducting for depreciation. It differs from market value, which reflects age and condition. Policies may offer reinstatement cover subject to conditions such as actually reinstating the property.

Question 20Miscellaneous

A surveyor is appointed to assess a theft claim for a commercial establishment. Which evidence is most useful in verifying that a theft actually occurred as described?

  1. The policy schedule alone
  2. The insured's verbal assurance
  3. The police complaint, FIR and stock records reconciled to the claim Correct answer.
  4. The premium payment receipt

Explanation

Verification of a theft claim requires documentary corroboration such as the police complaint or FIR and a reconciliation of stock records to establish the loss. Verbal assurance alone is insufficient and the policy schedule merely defines cover. The surveyor must test the claim against independent evidence.

Question 21Miscellaneous

Which of the following statements about the surveyor's fee is consistent with the regulatory framework?

  1. The fee is determined solely by the surveyor without reference to any scale
  2. The fee is governed by the scale prescribed under the regulations and borne by the insurer Correct answer.
  3. The fee is shared equally between insurer and insured
  4. The fee is payable by the insured in all cases

Explanation

Surveyor remuneration is governed by the fee scale prescribed under the regulatory framework, and the cost of the survey is borne by the insurer. The surveyor cannot unilaterally fix fees outside the prescribed scale. The insured does not ordinarily bear the survey fee.

Question 22Miscellaneous

In a motor total-loss assessment, the surveyor determines the pre-accident value of the vehicle as Rs 5,00,000, the salvage value as Rs 75,000 and the policy excess as Rs 10,000. On a total-loss basis, what is the net admissible amount before any other deductions?

  1. Rs 5,00,000
  2. Rs 4,90,000
  3. Rs 4,25,000
  4. Rs 4,15,000 Correct answer.

Explanation

The net loss is the pre-accident value less salvage, which equals Rs 4,25,000, and the policy excess of Rs 10,000 is then deducted to give Rs 4,15,000. Salvage is deducted because the insurer is indemnifying only the actual loss. The excess is a separate contractual deduction.

Question 23Miscellaneous

A surveyor is asked to assess a claim where the insured peril and an excluded peril both contributed to the loss. What approach best reflects sound loss-adjustment practice?

  1. Reject the claim entirely because an excluded peril contributed
  2. Apportion the loss between insured and excluded perils where the loss is divisible Correct answer.
  3. Pay half the claim as a standard practice
  4. Ignore the excluded peril and pay the full claim

Explanation

Where a loss results from both insured and excluded perils and the damage can be attributed to each, the loss is apportioned accordingly. This reflects the principle that the insurer pays only for loss caused by insured perils. A blanket rejection or full payment ignores the mixed causation.

Question 24Miscellaneous

Which of the following best describes the surveyor's role when a claim involves a dispute between the insurer and the insured over quantum?

  1. Decide the dispute as an arbitrator
  2. Act as the insured's advocate
  3. Provide an independent, evidence-based assessment to assist resolution Correct answer.
  4. Act as the insurer's representative

Explanation

The surveyor provides an impartial, evidence-based assessment of the loss that helps the parties resolve quantum disputes. The surveyor is not an advocate for either side and does not act as an arbitrator unless separately appointed to such a role. Independence is the foundation of the report's credibility.

Question 25Miscellaneous

A surveyor notes that the insured's fire extinguishing system had not been maintained, contrary to a policy warranty. What is the appropriate treatment in the report?

  1. Adjust the claim by a fixed percentage without comment
  2. Ignore the warranty as a technicality
  3. Recommend immediate cancellation of the policy
  4. Report the breach and its possible effect on liability Correct answer.

Explanation

A breach of warranty or condition is a material fact that can affect the insurer's liability, and the surveyor must report it with supporting evidence. The insurer then decides the consequences under the policy and applicable law. The surveyor does not unilaterally adjust or cancel cover.

Question 26Miscellaneous

A licensed surveyor is appointed to investigate a large fire loss and wishes to engage a structural engineer to examine the collapsed roof. Under the regulatory framework governing surveyors, how should this specialist assistance be handled?

  1. The surveyor must decline the appointment because a licence does not permit any delegation of survey work
  2. The surveyor may engage the specialist with the insurer's consent, and remains responsible for the report and its conclusions Correct answer.
  3. The insured must appoint and pay the specialist, since the loss occurred on the insured's premises
  4. The specialist must independently apply for a surveyor licence before examining the roof

Explanation

A licensed surveyor may seek expert or technical assistance where the loss requires specialised knowledge, but the licence holder remains accountable for the assessment and the signed report. The engagement is normally made with the knowledge and consent of the appointing insurer. Responsibility for conclusions cannot be transferred to the specialist.

Question 27Miscellaneous

Which document issued by a licensed surveyor typically records the factual observations made at the loss site, along with photographs and measurements, at the time of inspection?

  1. The cover note
  2. The policy schedule
  3. The survey or spot report Correct answer.
  4. The discharge voucher

Explanation

The survey or spot report is the record of what the surveyor actually observed at the site, including measurements, photographs and the condition of the property. It is prepared contemporaneously so that the facts are preserved before they change. The other documents listed are issued by insurers or are contractual instruments, not surveyor field records.

Question 28Miscellaneous

In assessing a marine hull claim, a surveyor must distinguish between a particular average loss and a general average loss. Which statement correctly captures that distinction?

  1. Particular average is an accidental partial loss borne by the owner of the damaged property alone, while general average is a sacrifice or expense intentionally incurred for the common safety and shared by all parties to the adventure Correct answer.
  2. Particular average is shared proportionately among all cargo interests, while general average falls solely on the shipowner
  3. Particular average arises only in war risks, while general average arises only in cargo risks
  4. Particular average applies only to total losses, while general average applies only to partial losses

Explanation

Particular average is a partial loss that falls on the interest that suffered it, such as damage to one consignment or to the hull alone. General average arises from a voluntary sacrifice or expenditure made for the common safety of ship and cargo, and the cost is contributed to by all interests saved. This distinction determines who bears the loss and how the claim is adjusted.

Question 29Miscellaneous

A surveyor assessing a claim under a standard fire policy must determine whether the loss falls within the scope of the insured peril. Which element is central to that determination?

  1. Whether the building was constructed of brick rather than concrete
  2. Whether the insured had paid the premium for the following year
  3. Whether the insured had previously lodged any claim with another insurer
  4. Whether the damage was proximately caused by fire or by an insured peril that followed from the fire Correct answer.

Explanation

Fire cover responds where damage is proximately caused by fire, lightning, explosion or another insured peril, including damage caused by efforts to extinguish the fire. The surveyor's task is to trace the dominant and effective cause back to an insured peril. Construction details and premium status may be relevant to other issues, but they do not define the insured peril itself.

Question 30Miscellaneous

A surveyor is examining a burglary claim where the insured alleges forcible entry through a rear door. Which finding would most directly undermine the claim of forcible entry?

  1. The premises had no burglar alarm installed at the time of loss
  2. The door shows no tool marks or deformation, and the lock was opened with a key that was not reported lost Correct answer.
  3. The stock register showed a high turnover of electronic goods
  4. The insured had increased the sum insured three months earlier

Explanation

Forcible entry requires evidence of physical force, such as damaged locks, broken frames or tool marks. A door that is undamaged and was opened with a key is inconsistent with forcible entry and points to a staged or non-forcible event. The absence of an alarm or a recent sum insured increase may raise questions but does not by itself contradict forcible entry.

Question 31Miscellaneous

Under the IRDAI surveyor regulations, a licensed surveyor is expected to maintain records and reports for a prescribed period. What is the primary rationale for this record-keeping requirement?

  1. To satisfy the insured's request for a copy of the policy wording
  2. To permit the surveyor to publish case studies for marketing purposes
  3. To allow the surveyor to claim reimbursement of office expenses from the insurer
  4. To enable regulatory inspection, audit and verification of the assessment if the claim is later disputed Correct answer.

Explanation

Retention of claim files and reports supports regulatory oversight, later scrutiny of the assessment and defence of the surveyor's conclusions if a dispute arises. It is a professional and regulatory obligation, not a commercial or marketing tool. The records belong to the professional file and are not for public or promotional use.

Question 32Miscellaneous

A surveyor is assessing a claim for damage to stored grain caused by moisture. Which investigation step would best establish whether the damage arose during the period of insurance?

  1. Reviewing the insured's previous insurer's premium history
  2. Checking whether the warehouse had a valid trade licence
  3. Correlating the moisture readings, warehouse temperature logs and the date of the last inspection with the policy period Correct answer.
  4. Confirming the insured's annual turnover from the audited accounts

Explanation

To place the damage within the policy period, the surveyor needs evidence that links the physical condition of the goods to a time frame, such as moisture readings, temperature and humidity logs, and inspection records. Financial and licensing documents do not show when the deterioration occurred. The investigation must connect the loss event to the insured period.

Question 33Miscellaneous

In a claim under a shopkeeper's policy, the surveyor must quantify stock loss. Which approach is most consistent with accepted loss-assessment practice?

  1. Reconstruct the stock position from purchase invoices, sales records and the opening stock, then apply the insured's gross profit or cost price basis as stated in the policy Correct answer.
  2. Accept the insured's oral estimate of the quantity destroyed without further verification
  3. Apply the sum insured as the value of the loss without examining the stock records
  4. Value the destroyed stock at the maximum retail price less the highest discount available in the market

Explanation

Stock losses are quantified by reconstructing the stock position from records, since the stock itself has been destroyed or damaged. The valuation basis, whether cost, cost plus a margin, or another basis, must follow the policy wording. Oral estimates or arbitrary values are not a proper basis for assessment.

Question 34Miscellaneous

A surveyor is asked to assess a liability claim arising from a slip at the insured's premises. Which matter is most important for the surveyor to establish?

  1. Whether the insured owed a duty of care to the claimant and whether that duty was breached in the circumstances Correct answer.
  2. Whether the claimant had previously made a motor claim
  3. Whether the insured's building was insured for fire risks
  4. Whether the claimant held any other insurance policy at the time of the accident

Explanation

Liability assessment turns on the existence of a duty of care, breach of that duty and resulting injury or loss. The surveyor examines the circumstances, maintenance records and compliance with safety obligations to advise the insurer on liability. Other policies held by the claimant and unrelated covers do not determine the insured's liability.

Question 35Miscellaneous

Which of the following best states the surveyor's obligation regarding conflicts of interest when accepting an appointment?

  1. The surveyor may accept the appointment if the insured is a long-standing client of the surveyor
  2. The surveyor should disclose any interest or relationship that could affect impartiality and decline the appointment where independence cannot be maintained Correct answer.
  3. The surveyor may accept the appointment provided the fee is agreed in writing before inspection
  4. The surveyor should accept the appointment and disclose the conflict only if the insurer later asks

Explanation

Independence is fundamental to the surveyor's function, so any actual or perceived conflict must be disclosed and, where it cannot be managed, the appointment should be declined. Agreeing a fee or having a prior relationship does not cure the conflict. Concealment of a conflict undermines the reliability of the report and exposes the surveyor to regulatory action.

Question 36Miscellaneous

A surveyor investigating a motor theft claim finds that the vehicle's engine number does not match the registration certificate. What is the most appropriate course of action?

  1. Record the discrepancy, seek verification from the registering authority and report the finding to the insurer before the claim is decided Correct answer.
  2. Reject the claim outright as the surveyor has authority to repudiate it
  3. Ignore the discrepancy because the vehicle identification number matches the policy schedule
  4. Settle the claim on a total-loss basis and note the discrepancy in the file later

Explanation

A mismatch in identifying numbers raises a question about whether the stolen vehicle is the insured vehicle, so the surveyor must verify the facts with the registering authority and report them. The surveyor's role is to investigate and advise, not to repudiate the claim, which is the insurer's decision. The finding must be placed before the insurer before any settlement decision.

Question 37Miscellaneous

What is the principal purpose of a joint survey or joint inspection in a claim involving more than one insurer?

  1. To allow the participating insurers to agree on a common factual basis and apportionment, avoiding conflicting assessments Correct answer.
  2. To transfer the insurer's decision-making authority to the lead surveyor
  3. To reduce the number of surveyors employed in the market
  4. To allow the insured to negotiate a higher settlement directly with the surveyors

Explanation

A joint survey enables insurers with a common interest to share one factual assessment, which reduces duplication and the risk of inconsistent findings. Apportionment between insurers can then be agreed on the same facts. It does not transfer decision-making authority away from the insurers or create a bargaining forum for the insured.

Question 38Miscellaneous

A surveyor assessing a claim under a marine cargo policy notes that the goods were shipped on deck without the insurer's knowledge, although the policy covered them as under-deck cargo. How should this be treated in the report?

  1. Treat the loss as covered because seawater damage is an insured peril regardless of stowage
  2. Report the on-deck shipment as a departure from the declared or warranted stowage basis, leaving the coverage decision to the insurer Correct answer.
  3. Recommend payment because the carrier is responsible for stowage decisions
  4. Adjust the claim by applying a fifty per cent reduction for the stowage change

Explanation

Where the policy covers cargo on an under-deck basis, on-deck carriage may amount to a breach of a warranty or a material departure from the declared risk. The surveyor's duty is to report the facts and their significance, not to decide cover. The insurer then determines the effect on liability under the policy.

Question 39Miscellaneous

Which of the following correctly describes the surveyor's position in relation to the insured during a claim inspection?

  1. The surveyor acts for the insurer but must deal with the insured fairly, explaining the purpose of the inspection and recording facts accurately Correct answer.
  2. The surveyor acts as an officer of the regulator and may impose penalties on the insured
  3. The surveyor acts as an arbitrator whose findings bind both the insurer and the insured
  4. The surveyor acts as the insured's representative and should advocate the insured's claim to the insurer

Explanation

The surveyor is appointed by and reports to the insurer, but professional conduct requires fairness and transparency towards the insured. The surveyor records facts and forms an independent view rather than advocating either party's position. The surveyor is neither an arbitrator nor a regulator.

Question 40Miscellaneous

In quantifying a business interruption loss, the surveyor must determine the indemnity period. Which statement correctly describes this concept?

  1. The maximum period, measured from the date of damage, for which loss of gross profit resulting from the interruption is payable Correct answer.
  2. The period during which the insured must pay the renewal premium
  3. The period for which the damaged building remains unoccupied after repairs
  4. The period between the date of the accident and the date the insurer appoints a surveyor

Explanation

The indemnity period is the maximum period, starting from the date of damage, over which the consequential loss of gross profit is measured and paid. It is chosen by the insured at inception to reflect the time needed to restore the business. It is not an administrative interval or a premium-related period.

Question 41Miscellaneous

A surveyor finds during a claim assessment that the insured property contained a hazardous process not disclosed in the proposal. What is the correct professional response?

  1. Ignore the matter because the surveyor's task is limited to measuring physical damage
  2. Report the non-disclosure to the insurer with supporting evidence, since it may affect the assessment of risk and the insurer's liability Correct answer.
  3. Advise the insured to remove evidence of the process before the final report is issued
  4. Amend the policy to include the hazardous process and adjust the premium

Explanation

Material facts affecting the risk must be reported so the insurer can consider their effect on the contract and the claim. The surveyor gathers and reports evidence but does not vary policy terms or premiums. Suppressing or destroying evidence would be a serious professional and legal breach.

Question 42Miscellaneous

Which of the following is the most appropriate basis for a surveyor to value damaged machinery where the policy provides for reinstatement?

  1. The written-down book value of the machinery in the insured's accounts
  2. The original purchase price of the machinery when new
  3. The scrap value of the damaged machinery plus a nominal allowance
  4. The cost of replacing or restoring the machinery to its pre-loss condition, subject to the terms and limits of the reinstatement provision Correct answer.

Explanation

A reinstatement basis indemnifies the cost of restoring or replacing the property to its pre-loss condition, subject to the policy's conditions and limits. Depreciated book value applies to an indemnity value basis, not reinstatement. Original cost and scrap value do not reflect the cost of restoring the asset.

Question 43Miscellaneous

A surveyor is assessing a claim where the insured alleges damage from a lightning strike, but there is no burn mark and the electrical equipment shows signs of gradual overheating. What conclusion is most defensible?

  1. The claim should be accepted because lightning can strike without leaving any trace
  2. The claim should be rejected by the surveyor on the spot
  3. The evidence indicates gradual deterioration or electrical fault rather than a sudden lightning event, so the cause should be reported as unlikely to be an insured peril Correct answer.
  4. The claim should be treated as a total loss because electrical equipment is delicate

Explanation

Lightning damage typically produces evidence such as burn marks, fusion or a clear moment of failure, whereas gradual overheating points to wear, tear or an electrical fault that is usually excluded. The surveyor reports the evidential conclusion and leaves the coverage decision to the insurer. Surveyors do not reject claims; they provide an assessment.

Question 44Miscellaneous

What does the term 'salvage' refer to in the context of a surveyor's assessment of a total loss?

  1. The residual value of the damaged property, which is deducted from the loss or retained by the insurer on payment of a total loss Correct answer.
  2. The cost of removing debris from the site after the loss
  3. The amount of premium refundable on cancellation of the policy
  4. The fee charged by the surveyor for the assessment

Explanation

Salvage is the remaining value of the damaged property. Where the insurer pays a total loss, the salvage may be taken over by the insurer or its value deducted from the settlement. Debris removal, premium refunds and survey fees are separate items and are not salvage.

Question 45Miscellaneous

A surveyor assessing a fire loss in a factory notices that the fire doors were wedged open, allowing the fire to spread between compartments. How should this be treated in the report?

  1. Record the wedged fire doors as a factor that increased the extent of damage, and note any relevant policy condition or warranty Correct answer.
  2. Disregard the matter because the fire itself was an insured peril
  3. Exclude the entire claim because fire doors are a statutory requirement
  4. Reduce the claim by a fixed percentage prescribed in the regulations

Explanation

The surveyor should record conditions that aggravated the loss and identify any policy condition, warranty or risk-improvement requirement that may be relevant. The insurer then decides the contractual consequences. There is no fixed regulatory percentage reduction, and exclusion of the entire claim is not automatic.

Question 46Miscellaneous

Which statement best describes the surveyor's duty when preparing an assessment of loss under a policy containing a deductible or excess?

  1. The surveyor reduces the deductible in proportion to the age of the property
  2. The surveyor ignores the deductible and leaves the insured to claim it separately
  3. The surveyor assesses the gross loss and applies the deductible as stated in the policy to arrive at the net amount payable Correct answer.
  4. The surveyor applies the deductible only if the insured requests it

Explanation

The deductible or excess is a policy term that reduces the amount payable on each claim, so the surveyor applies it to the assessed gross loss. It is not optional, and it does not vary with the age of the property. The assessment should show the gross loss, the deductible and the net payable figure.

Question 47Miscellaneous

In a claim involving damage to a consignment of fragile goods, the surveyor must consider the packing and handling. Which approach best reflects sound loss assessment?

  1. Assume the packing was adequate because the goods were accepted for carriage
  2. Report the loss as a total loss whenever fragile goods are damaged
  3. Examine the adequacy of packing against the policy requirement and the carrier's handling records, and attribute the loss between the parties on the evidence Correct answer.
  4. Assume the carrier is always liable for transit damage and report accordingly

Explanation

Loss assessment requires evidence-based attribution, considering the packing standard required by the policy, the carrier's handling records and the physical condition of the goods. Assumptions about liability or packing adequacy are not a substitute for evidence. Fragility alone does not convert a partial loss into a total loss.

Question 48Miscellaneous

A surveyor is asked to advise on the reserve to be indicated for a claim that is still under investigation. What is the purpose of such a reserve indication?

  1. To satisfy the insured that the claim will be paid in full
  2. To give the insurer an estimate of the likely ultimate liability so that it can make prudent financial provision Correct answer.
  3. To fix the final amount that must be paid to the insured
  4. To determine the surveyor's fee for the assignment

Explanation

A reserve is an estimate of the probable ultimate cost of a claim, used by the insurer for financial reporting and solvency planning. It is not a binding settlement figure and can be revised as the investigation develops. It has nothing to do with the surveyor's fee or a promise of full payment.

Question 49Miscellaneous

Under the regulatory framework, which of the following best describes the categories of surveyor licence granted by IRDAI?

  1. A single licence authorises the holder to survey every class of general insurance claim without restriction
  2. Licences are granted in categories such as fire, marine, motor, engineering and miscellaneous, with the holder authorised to survey claims in the licensed category Correct answer.
  3. Licences are granted only for motor claims, with other classes handled by loss assessors appointed by insureds
  4. Licences are granted by individual insurers rather than by the regulator

Explanation

Surveyor licences are issued in defined categories reflecting areas of competence, such as fire, marine, motor, engineering and miscellaneous. A surveyor's authority is limited to the category or categories for which the licence is granted. Licences come from the regulator, not from insurers, and are not unrestricted.

Question 50Miscellaneous

A surveyor is assessing a claim for damage to electronic equipment caused by a power surge following a lightning strike on the building. Which finding would best support the claim that the surge was a consequence of the lightning?

  1. A maintenance log showing that the equipment had not been serviced for two years
  2. A single unit failing several weeks after the rainy season began
  3. A record of the lightning strike from a meteorological source and evidence of a simultaneous failure of multiple units connected to the same supply Correct answer.
  4. The insured's statement that the equipment was old and unreliable

Explanation

Proving that a surge followed a lightning strike requires evidence linking the event in time and place to the failure, such as independent strike records and simultaneous failure of equipment on the same circuit. A single delayed failure or poor maintenance history points instead to gradual deterioration. The surveyor must connect the damage to the insured peril.