IRDAI Surveyor Motor (S-06) flashcards

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

IDV definition

Insured Declared Value is the manufacturer's listed selling price of the vehicle including accessories at policy commencement, less depreciation for age; it is the maximum sum insured for own damage claims.

Total loss settlement

When retrieval plus repair cost plus salvage exceeds 75% of IDV, the claim is settled on IDV less excess and salvage value rather than on actual repair cost.

Constructive total loss threshold

The 75% of IDV rule: if the aggregate cost of retrieval, repair and salvage value exceeds 75% of IDV, the vehicle is treated as a constructive total loss.

Compulsory excess

A fixed deductible applied to every own damage claim, set by engine capacity class (typically Rs 1,000 up to 1500cc and Rs 2,000 above), deducted from the assessed loss.

Voluntary excess

An additional deductible chosen by the insured above the compulsory excess; it reduces the own damage premium and is deducted from the assessed claim amount.

No Claim Bonus

A discount on own damage premium for claim-free years, rising from 20% at one year to 50% at five years, forfeited on any own damage claim unless protected.

NCB protection add-on

An endorsement that preserves the accrued No Claim Bonus across one own damage claim in the policy year, preventing reset to nil.

Depreciation on plastic parts

Rubber, plastic and nylon parts commonly attract 50% depreciation on repair claims; fibre glass parts attract 30%; metal parts are generally not depreciated.

Paint depreciation

Paint charges on a repaired vehicle are depreciated at the same rate applied to the part painted, reducing the net payable unless a zero depreciation add-on applies.

Zero depreciation add-on

An add-on waiving depreciation on plastic, rubber, nylon and fibre parts and paint, so repair claims are settled on actual cost without part depreciation.

Third party liability limit

Death and bodily injury liability is unlimited; property damage liability is capped at Rs 7.5 lakh under the Motor Vehicles Act as amended.

Third party premium basis

Statutory TP premium is fixed by engine capacity bands for private cars and two-wheelers; it is not negotiable and cannot be discounted by the insurer.

Owner-driver PA cover

A mandatory personal accident cover of Rs 15 lakh for the named owner-driver of a private car, separate from own damage and third party sections.

Salvage value

The assessed value of replaced damaged parts retained by the insurer; it is deducted from the claim or paid by the insured who keeps the salvage.

Theft claim documents

A theft claim requires an FIR, a non-traceable report from police, and the original policy and RC; settlement is on IDV less excess after the vehicle is declared untraceable.

Betterment

A charge levied when repair or replacement leaves the vehicle in better condition than before the loss, typically applied to old vehicles receiving new parts.

Survey report contents

A survey report records policy particulars, date and place of loss, cause, IDV, repair cost against bills, depreciation, salvage, excess and net payable, with technical reasoning.

Cause of loss classification

Own damage perils include accident, fire, self-ignition, lightning, burglary, riot, flood, inundation, landslide and malicious act; theft is a distinct peril requiring police reports.

Contributory negligence

A finding that the third party contributed to the accident, reducing the MACT award proportionately and therefore the insurer's third party liability payment.

Policy exclusions

Driving without a valid licence, driving under influence, use contrary to the stated limitations, consequential loss and wear and tear are excluded and affect the insurer's liability.

Limitations as to use

The policy clause defining permitted use (private, commercial, passenger carrying); use outside this scope can void or limit cover and must be checked during assessment.

Repair estimate verification

The surveyor compares the repair estimate with actual invoices, labour rates and OEM part prices, disallowing inflated or unrelated items before certifying the net payable.

Fraud indicators

Pre-existing damage, damage inconsistent with the reported cause, late intimation, missing documents and repairs done before survey are red flags recorded for insurer investigation.

Partial loss computation

Net payable on a partial loss equals assessed repair cost less depreciation on applicable parts less excess; the surveyor must show this computation clearly.

Total loss computation

Net payable on a total loss equals IDV less excess less salvage value; the computation must be documented alongside the 75% threshold calculation.

TP property damage assessment

Third party vehicle or property damage is assessed on actual repair cost basis, subject to the Rs 7.5 lakh statutory limit, with depreciation and betterment applied for older vehicles.

MACT award binding

A Motor Accident Claims Tribunal award binds the insurer to the extent of the policy; the surveyor assesses negligence, quantum and policy compliance supporting the award.

Engine protect add-on

An add-on covering damage to the engine and its internal parts from water ingress or lubricating oil leakage, which is otherwise excluded as consequential damage.

Return to invoice add-on

An add-on paying the difference between IDV and the original invoice price (including registration and road tax) when the vehicle is a total loss or theft.

Consumables add-on

An add-on covering consumables such as engine oil, coolant, brake fluid and filters replaced during repair, which are otherwise excluded from the own damage claim.

IDV depreciation slabs

Age-based IDV depreciation: nil up to 6 months, 5% for 6-12 months, then 10%, 15%, 20%, 30%, 40% and 50% in successive yearly slabs.

Surveyor independence

The surveyor must assess the loss independently and technically, documenting cause, quantum and deductions without influence from the insurer or insured.