Page 8 - Insurance Times December 2019

IRDAI says surveyors not Claim settlement norms simplified by IRDAI
required for motor, avia- In a notification, IRDAI has simplified the process of claim settlement and ush-
ered in that licensed surveyors will no longer be
tion, health policy claims mandatory in the line of business or LoB. The rule
IRDAI has recently stated that li- stands applicable in case of motor, personal acci-
censed surveyors are not necessary dent, cyber insurance, health or travel plans.
for settling any claims in the line of
The regulator also states that in policies where the
business (LoB) like claims under in-
claim arise due to death, injury or damage to third
surance policies inclusive of travel
parties as well as due to loss to some of the things such as crop, forest etc.
and personal accident covers, avia- which are sponsored by government-backed schemes can be settled without
tion hull insurance, motor, health the mandatory involvement of a certified surveyor. It is also suggested that in
and cyber insurance policies.
a case when a documentary evidence has been attached to provide for the loss
In accordance with the IRDAI, any amount being claimed at such a place also surveyor will not be involved.
claims, in respect of loss or damage In an earlier instance, in case of a claim application, insurance company used
to crop, trees, plantations and for-
to send a surveyor for analyzing the extent of damage and then a report was
ests which are covered by the gov-
required to be produced by him.
ernment-sponsored schemes and
claims under policies of motor ve-
hicle insurance where the claim is IRDAI releases recruitment notification for foreign
on account of theft or injury or owned insurance intermediaries
death to third parties can now be The IRDAI has recently notified recruitment for foreign owned insurance inter-
settled without mandatorily involv- mediaries. The Intermediaries Regulations effect
ing a certified surveyor. modifications to the various IRDAI regulations
In a notification, Sujay Banarjee, governing intermediaries to reflect the changes
Member (Distribution), IRDAI, said brought about by the Insurance FI Rules, includ-
the regulator has enlarged the ex- ing: the foreign investment cap limit of 49% for
emptions of some more portfolios intermediaries has been removed; the provisions
where use of a surveyor is not man- regarding compliance with the Guidelines on ‘Indian Owned and Controlled’
datory now. However, industry (IOCC Guidelines) prescribed by IRDAI to the extent applicable to insurance
sources said that in segments like intermediaries have been done away with; introducing an undertaking require-
fire and engineering, the general ment on insurance intermediaries with majority foreign shareholding to show
insurers will have to continue the compliance with the conditions mentioned in the Insurance FI Rules.
mandatory practice of appointing a The changes to the Foreign Exchange Management (Non-debt Instruments)
surveyor to settle any claims which Rules 2019 (erstwhile FEMA (Transfer or Issue of Security by a Person Resident
are above Rs 50,000. outside India) Regulations 2017) are now awaited in order for the FDI relax-
IRDAI has exempted claims under ation for investment in insurance intermediaries to fully take effect.
policies in respect of which docu-
mentary evidence of the value of Zero depreciation for cars up to 3 Years: IRDAI
loss is available in the form of police IRDAI has recently proposed a new proposal to determine the sum insured in
reports, short-landing or non-deliv- case of motor vehicle including both 2-wheeler as well as private cars. In the
ery certificates issued by port trusts, proposal, the working group on 'Product Structure for Motor Own Damage
railways or other public or semi-gov- Cover' has made a recommendation of 2 options for computing sum insured
ernment authorities, claims in re- for personal cars.
spect of which excise authorities The exposure draft said that in case of brand new private cars up to 3 years
give a certificate for dutiable items said the sum insured "shall represent the current day on-road price of the
and sling loss claims certified by vehicle insured including invoice value, road tax & registration charges and value
harbour authorities are now ex- of all accessories fitted thereon by the manufacturer".
empted from involving a surveyor
In case of vehicles that are old by more than 3 years, there shall be a gradual
for settling claim.
increase in depreciation from 40-60% for up to 7 years.
8 The Insurance Times, December 2019