Page 253 - Fire Insurance Ebook IC 57

The Insurance Times

On account settlement

n In very large losses, the insured desires and the surveyors
recommend, payment of 'on account settlements' where the insured
has already spent or is in the course of spending, on repairs,
replacement, etc. of damaged property.

n This course of action is taken where the liability under the policy
is not in doubt and the preparation of the final survey report will
take time for various reasons.

Coinsurance claims

n When the insurance is on a co-insurance basis, the surveyor is
appointed by the leading office.

n Each co-insurer is sent a preliminary advice of the claim
followed by a copy of the final survey report which would
indicate the apportionment of the loss among the co-insurers
who would send the cheque for his share of the loss directly
to the claimant.

n Usually the leading office settles the entire loss and recover the
expenses and proportionate shares of the loss from the co-insurers.

Primary duties of Surveyor

(i) Investigate into the cause of loss;

(ii) Ascertain the extent of loss ;

(iii) Advise the insured on loss minimisation measures and protection
of salvage ;

(iv) Advise the insurers on disposal of salvage ;

(v) Submit a detailed report on the above and other aspects relating
to the loss.

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