IRDAI Surveyor Motor (S-06) cheat sheet

Motor tariff structure: Own Damage (OD) premium is tariff/IRDAI-filed rate applied to Insured Declared Value (IDV); Third Party (TP) liability premium for private cars is fixed by engine capacity bands (below 1000cc, 1000-1500cc, above 1500cc) and for two-wheelers by capacity bands; TP rates are statutory, not negotiable.

IDV basis: IDV = manufacturer's listed selling price of the vehicle (including accessories) at the commencement of insurance, less depreciation for age. Typical private car depreciation: up to 6 months nil, 6-12 months 5%, 1-2 years 10%, 2-3 years 15%, 3-4 years 20%, 4-5 years 30%, 5-6 years 40%, 6-7 years 50%, and higher slabs thereafter.

Total loss / constructive total loss rule: where the aggregate cost of retrieval and repair (including salvage value) exceeds 75% of the IDV, the claim is treated as a total loss and settlement is on IDV less excess and salvage value; below that threshold, repair on actual cost basis.

Betterment and depreciation on parts: rubber, plastic, fibre and nylon parts attract depreciation (commonly 50% for rubber/plastic/nylon, 30% for fibre glass), and paint charges are depreciated; metal parts are generally not depreciated on a repair claim.

Excess/deductible: compulsory excess applies to every OD claim (fixed amount by capacity class), plus voluntary excess chosen by the insured; the higher deductible reduces premium. Excess is deducted from the assessed loss, not from the TP liability.

No Claim Bonus (NCB): a percentage discount on OD premium for claim-free years (typically 20% at 1 year rising to 50% by 5 years); NCB is forfeited on any OD claim and must be protected by a declared NCB endorsement.

Third party liability: unlimited for death/bodily injury, and statutory limit for property damage (Rs 7.5 lakh under the Motor Vehicles Act as amended); the policy covers legal liability of the insured, and the insurer is bound by the MACT award subject to policy terms.

Surveyor's report must record policy particulars, date/time/place of loss, cause of loss, IDV, assessed repair cost as per actual bills, salvage value, depreciation, excess and net payable; the report is the basis for insurer's settlement and must be independent and technically reasoned.

Personal Accident cover: owner-driver PA cover of Rs 15 lakh is mandatory for private car owners under the Motor Vehicles Act; it is a separate section from OD and TP and applies to the named owner-driver only.

Cause of loss classification: 'own damage' covers accident, fire, explosion, self-ignition, lightning, burglary, housebreaking, riot/strike, malicious act, flood, typhoon, tempest, hurricane, inundation, landslide, rockslide; 'theft' requires FIR and non-traceable report for settlement.

Motor TP claim settlement: MACT/tribunal awards are binding on the insurer to the extent of the policy; the surveyor assesses liability, negligence and quantum; contributory negligence reduces the award proportionately.

Salvage: damaged parts replaced are the insurer's salvage; salvage value is deducted from the claim or the salvage is retained by the insured against payment of its assessed value; salvage must be recorded in the survey report.

Reinstatement/repair estimate: surveyor must verify repair estimates against actual invoices, labour rates, and OEM part prices; inflated or unrelated items are disallowed; the surveyor certifies that repairs were actually carried out.

Fraud indicators: pre-existing damage, mismatch between damage pattern and reported cause, late intimation, missing vehicle documents, and repairs already done before survey; surveyor must record observations for the insurer's investigation.

Assessment of TP property damage: surveyor assesses the third party's vehicle/property damage on actual repair cost basis, subject to the statutory property damage limit; depreciation and betterment apply where the third party's vehicle is old.

Policy exclusions relevant to assessment: driving without valid licence, driving under influence, use contrary to 'limitations as to use', consequential loss, and wear and tear; exclusions affect liability and must be documented.

Documentation checklist for OD claim: policy copy, driving licence, RC, FIR (for theft/third-party), repair bills, photographs of damage, and surveyor's site report; missing documents delay settlement and affect liability.

Motor insurance add-ons affecting assessment: zero depreciation (waives depreciation on plastic/rubber parts and paint), engine protect, return to invoice, roadside assistance and consumables; each add-on changes the net payable computation.

IDV and total loss math: for a total loss, net payable = IDV - excess - salvage value; for a partial loss, net payable = assessed repair cost - depreciation - excess; the surveyor must show both computations where relevant.

Depreciation schedule for parts: metal parts generally not depreciated on repair; rubber/plastic/nylon parts commonly 50%; fibre glass 30%; glass usually not depreciated; paint charges depreciated at the same rate as the part painted.

NCB ladder: 20% (1 claim-free year), 25% (2), 35% (3), 45% (4), 50% (5 or more); NCB resets to nil if any OD claim is made in the policy year; NCB protection add-on preserves it across one claim.

Third party premium bands (private car): below 1000cc, 1000-1500cc, and above 1500cc; two-wheeler bands similarly by engine capacity; these TP rates are statutory and are not subject to negotiation or discount.

Compulsory excess (private car, typical): Rs 1,000 for engine capacity up to 1500cc and Rs 2,000 above 1500cc; two-wheelers Rs 100-200 depending on capacity; voluntary excess is additional and reduces OD premium.

Constructive total loss threshold: cost of retrieval + repair + salvage > 75% of IDV is treated as total loss; the surveyor must compute and document this ratio before recommending total loss settlement.

TP liability limits: death/bodily injury unlimited; property damage capped at Rs 7.5 lakh under the Motor Vehicles Act; the insurer's liability is subject to the policy and the MACT award, with contributory negligence applied to reduce quantum.

Survey report structure: policy details, insured/vehicle particulars, date and place of loss, cause, IDV, repair estimate vs actual bills, depreciation, salvage, excess, and net payable; the report must be signed and reasoned, not merely a bill summary.

Zero depreciation add-on: waives depreciation on plastic, rubber, nylon and fibre parts and paint; without it, these parts attract 30-50% depreciation, materially reducing the net payable on a repair claim.