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ANNUAL REPORT 2011-12<br />
BOX ITEM 8<br />
SURVEYORS & LOSS ASSESSORS – RECENT INITIATIVES OF <strong>IRDA</strong><br />
Surveyors and Loss Assessors (S&LAs) play an important role in assessment of losses arising out of a contingency insured<br />
under a policy of general insurance. Further, SLAs are necessary under Section 64UM of the Insurance Act, 1938, which requires<br />
that a duly licensed SLA has to submit a report in respect of any claim where the loss is over `20,000 in value, on a policy issued<br />
by any of the non-life insurers registered with <strong>IRDA</strong>. This limit of loss is not applicable in respect of policies that have been<br />
exempted by the Ministry of Finance, Government of India, vide notifi cation No. 203 (registered No. D221) S.O.1983 dated 30 th<br />
May, 1970 Jyaistha 9, 1892 in the Gazette of India, Extraordinary Part-II – Section 3 – Sub-Section (ii).<br />
The role of Surveyors and Loss Assessors is clearly provided for while laying down the duties and responsibilities under Chapter<br />
IV of the Insurance Surveyors and Loss Assessors (Licensing, Professional Requirements and Code of Conduct) Regulations,<br />
2000. The Regulation 13 inter alia states that the major duty and responsibility of a surveyor and loss assessor shall be to<br />
investigate, manage, quantify, validate and deal with losses arising from any contingency and report there upon. All licensed<br />
surveyors and loss assessors shall work with competence, objectivity and professional integrity by strictly adhering to the code<br />
of conduct envisaged in the Regulations. The introduction of Insurance Surveyors and Loss Assessors (Licensing, Professional<br />
Requirements and Code of Conduct) Regulations, 2000 provides for effective monitoring, controlling, supervising and regulation<br />
of licensed surveyors and loss assessors. The regulations have helped in bringing about transparency, expertise, professionalism<br />
to the activities of surveyors and in protecting the interests of policyholders.<br />
Some of the recent initiatives of the Authority with regard to the profession of S&LAs include the following:<br />
Exposure Draft<br />
The <strong>IRDA</strong>, as mandated by the Government of India, took the necessary steps for the establishment of the Indian Institute of<br />
Insurance Surveyors ad Loss Assessors (IIISLA), which was incorporated on 4 th October, 2005 under Section 25 of the Companies<br />
Act, 1956, having members from <strong>IRDA</strong> and Central Government in its Board. In order to professionalize IIISLA, the Authority<br />
issued an Exposure Draft covering the various issues pertaining to the profession of Surveyors and Loss Assessors and the<br />
IIISLA. The Exposure Draft was placed on the <strong>IRDA</strong>’s website for views and comments from the General Insurance Council,<br />
IIISLA and other members of the public. The objectives of issuing the exposure draft include – to suggest methods to reorganize,<br />
strengthen and professionalize IIISLA by introducing sound corporate governance standards; to set up structures to strengthen<br />
and administer the functioning of IIISLA; to suggest necessary changes in the MOA/AOA in order to facilitate the structural<br />
changes and to suggest mechanism for placing fiduciary obligations on surveyors and loss assessors in discharge of their duties.<br />
The exposure draft has taken into consideration the provisions of applicable law, documents, reports, relevant pronouncements/<br />
judgments of the Hon’ble judiciary, feedback received from routine onsite and offsite supervision of the general insurance industry,<br />
representations/suggestions and complaints received so far from SLAs, policyholders, various orders and guidelines issued by<br />
<strong>IRDA</strong> from time to time. The revamping of IIISLA covers the Amendments to Memorandum & Article of Association of IIISLA,<br />
Secretarial and Administrative Support, introduction of Mandatory membership and Registration of members, including Student<br />
Members, introduction of Code of Ethics for members, revision in membership fee, training and examination, introduction of<br />
Continuous Professional Development for students and surveyors by way of online courses.<br />
The exposure draft also covers some of the other issues relating to surveyors and loss assessors viz., introduction of System<br />
of categorization on the basis of membership levels in IIISLA, training requirements for up-gradation of category, removal of the<br />
restriction in allocation of survey departments, fi nancial limits for allocation of survey work, methodology for empanelment and<br />
utilization of services of licensed surveyors by insurers and revision in survey fee.<br />
Integrated Surveyors Licensing Management System (ISLMS)<br />
The <strong>IRDA</strong> is in the process of implementing a web based licensing portal for surveyor licensing, which would facilitate the process<br />
on account of its following features:<br />
Online submission of applications for enrolment/grant of fresh/renewal license to Surveyors and Loss Assessors,<br />
Facilitate and speed up process of fresh/renewal applications,<br />
Facilitate integration with Insurers and other insurance related bodies,<br />
Provide information about license status to insurers, policyholders and stakeholders,<br />
Disclosure and on line fi ling of information by surveyors,<br />
Maintenance and automatic updating of data/information on surveyors,<br />
Analysis of data on licensed surveyors.<br />
Digitization of Surveyors Records<br />
As a step towards maintenance of surveyor records in soft form, the Authority is in the process of digitizing records of all licensed<br />
surveyors.<br />
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