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DECLARATION

I hereby declare that this project report titled ROLE AND FUNCTION OF SURVEYOR AND LOSS ASSESSOR IN CURRENT INSURANCE MARKET Is submitted by me to AMITY SCHOOL OF INSURANCE & ACTUARIAL SCIENCE (ASIAS), is a Bonafide work undertaken by me and it is not submitted to any other University or Institute for the award of any Degree / Diploma / Certificate or published any time before.
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Signature (Mr. B.R Singh) (MENTOR)

Signature (Mr. Amit Kumar Barnwal) A2828410007

Acknowledgement
To begin with, I would like to acknowledge all those who have been supportive in shaping up this project under their guidance and inspiration. I would like to give my special thanks and deep sense of gratitude to B.R.Singh (faculty guide, AMITY INSTITUTE OF INSURANCE AND ACTURIAL SCIENCES), for guiding and encouraging to do well throughout the training period. My special thanks also go to O.P. Gupta and shetty sir for giving me the opportunity to get trained in the company like United India insurance. They all have constant source of knowledge, information, help and motivation for me through in depth knowledge and reflections. Mr. Rajesh Verma (faculty of marketing in ASIAS) also helped me in selection of my project and also in preparing of my questionnaire. His teaching of marketing helped me a lot while preparing this project. I give my sincere thanks to United India Insurance Company for giving me an opportunity to work with them through this project and giving us a practical view of working of an insurance company. Without their support it was not possible to prepare this project. I would mention the name of Mr. Imteazul haque (Risk engineer), Aditya sir, Amit Sharma (D.M., noida) under whose supervision I completed my project. I would like to express my sincere gratitude to M.K.Sinha (Regional Manager) who has shared his vision and knowledge and also was the constant source of inspiration throughout the project. I am thankful to all the surveyors who have shared their views with me and also helped me filling the questionnaire.

Amit Kumar Barnwal A2828410007 MBA- Insurance & Banking

Table of Contents
1. Faculty guide declaration 2. Industry guide declaration 3. Acknowledgement 4. Executive summary 5. Introduction 6. Review of literature 7. Introduction to the problem 8. Methodology 9. Surveyors & loss assessors a) Role and functions b) Results and analysis c) Recommendations 10. References 11. Appendix 12. Annexure

EXECUTIVE SUMMARY
Insurance sector is one sector which is expected to undergo a sea change seeing its huge potential in current times as is also evident from the fact that this sector has a penetration of a paltry 5-6%. This sector is touted to generate a whole lot of employment opportunities as contribute significantly towards the countrys GDP. It is interesting to see that despite such a vast potential for growth of employment, revenue and investment penetration of insurance to the GDP is very low. It is just .7% for general insurance and 2.45% for life insurance. A study was done to understand the role and functions of surveyors and loss assessors in current insurance market. Also an attempt was made to know what new changes and regulations can be brought out to help surveyors in performing their work smoothly. The purpose of this report was to study the effectiveness in the working of surveyors while settling the claim, and also their suggestions for timely settlement of genuine claim. This is a kind of exploratory research through a structured questionnaire which encompassed questions pertaining to the role and functions of surveyors and loss assessors in the current insurance market. Convenience sampling was used.

Conclusions 1. It is very essential that surveyors get adequate support from both insured and insurer for timely settlement of genuine claim. 2. It is generally seen that if a policy was wrongly obtained by the insured and once claim is reported, than insured is reluctant to disclose information at the time of settlement of claim and claim payment is delayed.

3. By arranging regular training, seminar and get together with senior members, the standards of surveyors can be raised & make them efficient in competitive world.
4.In the current changing scenario, where not only domestic but foreign companies are also in market, it is important to upgrade the skills of surveyors as they are expected to conduct survey work for these companies also.

5. As the companies are getting global, the perspective of companies has become more consumers centric. So the surveyors must be in better position to give best and prompt service in settlement of claim. Recommendations
1. Once a claim is reported to insurance company, there should be quick intimation of claim to the surveyors so that he can take timely action and help timely settlement of genuine claim. 2. Company should have structured meetings and discussions with surveyors regarding various aspects of settlement of claim especially in a situation where insurance product is getting complicated. 3. Regular training, seminars and up gradation of surveyors will lead to timely completion of survey work and thus settlement of genuine claim. 4. The surveyor is known as independent person and is meant for social cause. So the surveyor must by his side make all efforts to understand a case judiciously and take decision on it. 5. A surveyor has to behave and act like an ambassador for the insurers when he starts from the insurer end but as he has the duty to see that all genuine claims should be passed. 6. He must not get partial while making report for companies for settling of claim.

INTRODUCTION TOPIC: Role & Functions of surveyors and loss assessor in insurance market. Man has always been in search of security and protection from the beginning of civilization. This urge in him lead to concept of insurance. The basis of insurance was sharing of the losses of few amongst many. Insurance provides financial stability and strength to individuals and organization by the distribution of loss of few among many by building up a fund over a period of time. What is insurance? The legal definition of insurance is that, it is a contract between the insurers and insured whereby, in consideration of payment of premium by the insured the insurer agrees to make good any financial loss the insured may suffer due to the operation of an insured peril. This contract is governed by Indian contract act, insurance act and the common law. Viewpoint of individual: insurance is a device through which the individual substitutes mall certain cost of large uncertain loss emphasizes on transfer of risk. Viewpoint of society: from social point of view, insurance is an economic device for reducing and eliminating risk through combining a sufficient number of homogeneous exposures into a group to make the losses predictable for the group as a whole. Viewpoint of law and economics: Insurance in law and economics is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium.

An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called premium, to be charged for a certain amount of insurance coverage. To incorporate all the factors and to sum up, the commission on insurance terminology of the American risk has defined insurance as follows Insurance is the pooling of fortuitous losses by transfer of such risks to insurers, who agree to indemnify for such losses, to provide other pecuniary benefits on their occurrence, or to render services connected with the risk.

Insurance is divided into two parts1. General insurance 2. Life insurance Earlier there used to be four insurance companies which were fully controlled by government but after liberalization it was strongly felt in insurance arena that only four government companies cant achieve the target of securing the life of a huge population of a country like India. Government allowed private players to enter the insurance market and better serve the need of consumers by innovating products for the huge untapped population. INSURERS IN INDIA Life insurers: Life insurance Corporation of India (LIC) General insurers: GIC had four subsidiary companies, namely 1. United India insurance company limited 2. The oriental insurance company limited 3. The new India assurance company limited 4. National Insurance company limited In all there are 23 life insurance companies and 23 general/non-life insurance companies (including GIC which is working as reinsurer) working presently in the market.

Strengths/opportunities Out of government fear that four general and one life insurance company would not be able to cater to the need of a huge population, government allowed deregulation of the market to increase competition and innovation in the insurance areas from underwriting, marketing, policyholder servicing to record keeping.

Private players came out of traditional product and brought innovation in products. Also designing of tailor made product to suit the need of each and every individual. Aggressive marketing by private players will make consumer aware about the various products available in the market and to help them choose product which fulfill their requirements. Large number of private players in market will intensify competition thus reduction in premiums amount and better services to the consumer. Innovation in distribution and improvements in market penetration will follow as public and private players compete to market their products. The insurance regulatory authority of India keeps a constant watch on the activity of insurers and make sure that insurers dont mislead the consumers also bring effective policy for orderly growth of insurance market. IRDA emphasis on quarterly reporting/monitoring of insurer solvency will enhance capital adequacy and transparency.

Domestic companies are entering joint venture with foreign insurance companies thus bringing expertise, techniques, and innovation in the market. Though government has allowed only limited share of foreign companies in joint venture but still it will bring good prospect for local market. Weakness/challenges Premium rates will remain under pressure due to intense competition on more profitable lines. As the competition increases companies will incur more cost on marketing activities and thus reduction in the overall profit of the company.
Companies will need to upgrade their technology as the innovation

will only reduce the cost of product but up gradation of technology will cost huge investment and thus reduction in profit.
Intense competition among players will make them use of false

marketing information to lure them for their product and in this way customers fall for wrong product which they dont need. There is general lack of transparency as financial and operational data for insurers are not readily available as none of India insurers are directly listed on stock exchanges.
Companies still dependent on traditional way distributing their

product i.e. agents which make the process slow and sluggish.
There is a great need of trained insurance professionals and

technicians at all levels in insurance profession without which sustainable growth in insurance sector cant be achieved.

ABOUT THE COMPANY United India Insurance Company


United India insurance company limited was incorporated as a

company on 18th February 1938. Nationalized in 1972 and became a wholly owned subsidiary of GIC. After promulgation of IrDA act, 1999, entire share capital transferred to government of India. Currently united India is the fastest growing public sector general insurer of India. United India is the leading general insurance company providing wide range of insurance services to the clients in general insurance headquartered at Chennai. United India was formed by the merger of 22 companies, consequent to nationalization of general of insurance. FINANCIAL OVERVIEW Solvency ratio was 2.75 as against IrDA requirement of 1.5. It is one of the highest in the industry. ICRA granted iAAA rating for 8th consecutive years indicating highest claim paying capacity.
United India Insurance continued its spectacular performance for the

third year in succession completing a business of 6376.66 crores in 2010-11. This is an increase of 1137.61 crores over 2009-10 at a growth rate of 21.71%. It is not only highest in pubic sector, but higher than many of large private players. Net profit and premium earned

Years

Premium

Profit

2005-06 2226 453 2006-07 2529 529 2007-08 2880 632 2008-09 3510 476 2009-10 4910 707 2010-11 6376 130 This 130 crore profit was made after absorbing 900 crore due to wage revision, enhanced pension fund and gratuity revision, increased Provisions for Motor Third Party Pool claims as per the directions of IrDA. So this way the actual profit comes up to 1130 crore which is actually an increase in profit and premium from previous years.

United India insurance strength:


Strong balance sheet and revenue reserve.

Market leader in hull insurance.

Pioneers and specialists in oil energy. Insurer of IOC, Indian railway, BHEL, HINDALCO, NTPC. Projects like Hyundai, marine, Balco, national roadways & highways etc. United India has entered a strategic tie ups with major LIC HFL finance services limited, Vijaya bank, Dena bank, development credit bank and several RRBs, and co-operative bank during current financial year for banccasurance services. Strategic tie ups were also made with the automobile manufacturers M/s.Toyota Kirloskar Motors Pvt. Ltd and M/s.Cheverlot Sales India Pvt. Ltd. during the year to insure their vehicles as a preferred insurer.

Projects under United India Insurance company:


NTPC SIMHADRI IOCL Mega policy BHEL comprehensive mega risks policy covering all projects NTPC VINDHYACHAL STAGE 3 BALCO Korba

ONGC mega policy

ONGC offshore package policy GVK Road project GMR road project Golden Quadrilateral project GMR Hyderabad international airport Mumbai international airport ltd Also in its initiative taking insurance to rural masses with large implementation of universal health insurance programme of government of India . National livestock insurance. United India remains committed to serve the rural and socially under privileged and have insured 1,62,99,413 People under BPL and unorganized sector and continues its leadership.

Literature Review
ASIA INSURANCE REVIEW New Delhi, April 10 2011 Ficci: Insurance Industry premium to reach $350-400 billion by 2020 India's insurance industry will outpace economic growth and is likely to reach $350-400 billion in terms of premium income by 2020, making it among the top three life insurance markets, an industry report revealed. According to a study conducted by Federation of Indian chambers of commerce and industry. Asia Insurance Review Date: 7/4/2011

Premium penetration of insurance industry rose over decade


In a report prepared by association of Chambers of commerce and industry of India (Assocham) that penetration of the insurance industry, premium as percentage of the country's gross domestic product (GDP), has increased from 2.3 percent in 2001 to 5.2 percent in 2011. In addition, there has been a vast increase in the coverage of insurance. The number of life policies in force has increased nearly 12-fold over the past decade and health insurance, nearly 25-fold.

Asia Insurance Review (5th Nov 2010)

India: General insurance premium to reach US $22 Billion in next 5 years Indias apex trade body, The Associated Chambers of Commerce and Industry of India (Assocham), has projected that non life insurance premium will rise to about to Rs. 1 trillion in next 5 years driven by demand in rural areas as public awareness of the need for insurance increases in the countryside.

Business line 30th September 2010 Insurance Sector in India poised for tremendous expansion
Insurance Sector in India is poised for tremendous expansion said Shri Pawan Kumar Bansal, the Minister of State for Finance while addressing a meeting of Insurance Australia Group on 21st September 2010 in Sydney. Shri Bansal said the banks also have entered the insurance sector in the form of corporate agencies or under referral arrangements to utilize the extensive and broad reach of marketing of insurance product specially in rural area. IRDA has also notified Micro Insurance regulations facilitating insurers to tap the potential of rural markets. As per these regulations like NonGovernment Organizations (NGO), Micro Finance Institutions (MFI) and Self Help Groups (SHG) have been recognized as micro insurance agents. It is envisaged that micro insurance would facilitate penetration of insurance to rural and remote areas. He said that Micro Insurance being an integral part of overall insurance system, attempts to offer the target specific insurance products at a relatively lower cost, for a lower coverage of amount. Shri Bansal said that in insurance sector though the growth in recent years has been significant, India is far behind the world averages and ranks 78th in terms of insurance density and 54 th in terms of insurance penetration. The world averages are US $ 469.6 in terms of insurance density and 8.06% in terms of insurance penetration. Against this, insurance density was US$ 19.70 and insurance penetration was 3.17% in India for the year 2003. However, these two indices have increased following the opening of this sector. Insurance Regulatory and Development Authority has granted registration to

37 insurance companies, which include 17 life insurance,19 non-life insurance (including four PSU, one AICL & one ECGC) companies & one re-insurance company. At present seventeen insurance companies are operating in the general insurance side & 17 insurance companies on the life side. According to Shri Bansal, India offers a stable investment climate as well as a huge market with a growing middle class. Investor confidence in India is at an all time high today. A.T. Kearney in 'The FDI Confidence Index 2009' has ranked India as the 2nd most attractive investment destination just behind China whereas 'World Investment Report, 2009' ranked India as the 2nd most attractive investment destination among Transnational corporation.

Introduction to problem
The reason behind the study was to measure the role and functions of surveyor and loss assessors in the current insurance market and the measures being taken by Institute of surveyors and loss assessor and IrDA in increasing their effectiveness in this growing market. Also an attempt was made to find out the changes that surveyors wants IrDA and institute of surveyors and loss assessor to make in their regulations so that their job remains challenging specially when foreign companies are entering the domestic market through joint alliance and stressing on employing foreign surveyors and investigators for claim settlement. The project was divided into three parts: A comprehensive definition of surveyors and loss assessors Role and functions of surveyors & loss assessor Regulations made by IrDA and Conclusion For the purpose of study and making the report on it, a significant number of surveyors were contacted and through questionnaire an attempt was made to find out their role in current insurance market and the problem they face while dealing with insured and insurer while settling a claim. Also what all measures companies and regulator can take in order to increase the efficiency of surveyors and reduce the attrition rate?

Methodology
Types of research design:
Stage 1: Exploratory research design Analysis of secondary data in a qualitative way to exactly define the problem and hypothesis.

Stage 2: Descriptive research design (conclusive research design) The survey method comprises of a structured questionnaire given to respondents and designed to elicit specific information about role and functions of surveyors and loss assessor in current insurance market. Information needs: Literature data from previous researchers in same direction. Theory behind the research, regulatory requirements, details of their working and other related processes. Getting the questionnaire filled by respondents. Feedback by way of questionnaire and suggestions, if any.

Data collection from secondary sources:


Online search engines, IrDA website Articles, research papers, journals, newspapers etc

Data collection from primary sources:


(Primary data by way of questionnaire and suggestions) Data collection is important once sample is selected. Convenience sampling and simple random sampling are the methods used to choose the respondents on whom the survey is being conducted. With data that is available in hard copy was then converted into electronic form. The survey was based on personal method of survey. Questionnaire was then filled up by respondents; purpose of the survey was explained to them. The questionnaires were returned back after filling up on their convenience.

Scaling techniques:
The respondents were asked to rank the attributes on a five pointer scale likert scale (in terms of 1-strongly agree, 2- agree, 3-neither agree nor disagree, 4- disagree, 5- strongly disagree), dichotomous scale (1-yes, 2- no), open ended question were also used.

Questionnaire development and pre-texting:


Questionnaire design is a very effective issue as it is a very important tool by which information is elicited from the respondent. If questionnaire is not prepared well the project will not give effective result. So the questionnaire should be designed carefully and also we must get it approved by an expert. The questionnaire was meticulously prepared by identifying the various variables. A questionnaire was prepared by me and I also get it approved from the faculty. Questionnaire is attached as annexure 1.

Sampling techniques:
In the survey conducted, the sampling used was convenience sampling. Data collection was based on my convenience. As my project required me to get the questionnaire filled from surveyors, I contacted them by getting reference of my company where I was doing my summer internship. Excel is used for the purpose of analysis of my results.

Surveyors and loss assessor:


As per insurance act, 1938 and insurance (amendment) act,- 1968, under section 64-UM sub clause 2 reads as under :No claim in respect of loss which as occurred in India and acquiring to be paid or settled in India equal to or exceeding Rs. 20000 in value or any policy of insurance, arising or intimated to an insurer at any time after the expiry of a period of one year from the commencement of the insurance(amendment) Act 1968, shall unless otherwise directed by the controller, be admitted for the payment or settled by the insurer unless he obtained a report, on the loss that has occurred, from a person who holds a license issued under this section to act as a Surveyor or Loss Assessor(hereafter referred to as Approved Surveyor or loss Assessor):

The real purpose and correct definition of surveyor


Duties & responsibilities of surveyor:
Surveyor has to play a very vital role amongst the insurers and the insured. To be more honest right explanation of surveyor is a A professional who is called &/or engaged only when a part of community is in crisis for whatsoever reason hence the community of surveyor is rendering their services to the society at large through the insurers, who are the only

custodians of public money. The surveyor is working in an atmosphere of complete uncertainty when any perils like riots, flood, earthquake etc. operates. Therefore important duties and responsibilities of surveyor is considered as under: A surveyor has to behave and act like an ambassador for the insurers when he starts from the insurers end. The moment a surveyor reaches to the client &/or insured, he is supposed to behave like a doctor to put an ointment on the wound of the patient and give him painkiller so that he(insured) is forced to realize that he has been relieved from the pain and tension and feels that he is in safe hands. Only thereafter a doctor (surveyor) will start proper treatment (assignment). If a surveyor behaves in this manner, he will definitely be able to receive full faith of the insured, to whom he has assured by way of above behavior that he (insured) has been put in safe hands. The behavior will also result in rebuilding the image of surveyor at large. A surveyor is also supposed to be fully aware of his limitations from the viewpoint of the policy terms and conditions so that he will be able to explain his limitations to the insured and satisfy and convince him about his all queries regarding compensation indemnity of loss. On return a surveyor is supposed to prepare concise but a comprehensive report for the insurer stating therein all necessary material facts as regards cause of loss, degree of moral hazard and the assessment of loss in terms of money. Responsibilities of surveyors are not over after the release of report as he is very much concerned about the problems at the end of the insurers and as such, he is supposed to extend his fullest co-operation to the insurers for an early disposal of a claim.

Conclusion:
Precisely speaking, surveyors are the true working arms for the insurers without whom they cannot pick even rupee premium from the market and he is supposed to act as an asset for the insurers not the liability as well as he must always have the concept in his mind that we are at par with the red cross society and also they must behave with insured in the most humble manner.

Need of surveyors: It
is the statutory requirement of the insurance amendment act -1968 that any loss except specified in the schedule vide notification no s.o.1983-all the cases above Rs 20000/- and above are to be surveyed/assessed by an independent licensed surveyor.

Procedure of becoming a surveyor:


Sec 64 UM (1) reads as under: a) No person shall act as a surveyor or loss assessor in respect of general insurance business after the expiry of a period of three year from the commencement of the insurance act, 1968, unless he holds a valid license issued to him by the comptroller. b) Every person who intends to act as an surveyor or loss assessor after the expiry of a period of three years from the commencement of insurance act 1968, shall make an application to the authority on payment of such fee, not exceeding rupees two hundred and fifty as may be prescribed. c) Every license issued under this section remains in force for a period of five years from the date of issue thereof, and may be renewed for a period of five years at a time, on payment of such fee, not exceeding rupees two hundred and fifty as may be prescribed. d) No license to act as a surveyor or loss assessor shall be issued unless: e) The applicant where he is an individual satisfies the authority that hea) Holds a degree of a recognized university in a field of engineering, or b) Is a fellow or associate member of institute of charted accountant of India or the institute of cost and works accountants of India, or

c) Holds a diploma in insurance granted or recognized by the government d) Possesses actuarial qualifications or holds a degree or diploma of any recognized university or institute in relation to insurance e) Doesnt suffer from any disqualifications mentioned in sub-section (4) of section 42. ii) The applicant, where he is a company or firm, satisfies the authority that all the requirements (a) as the case may be specified in clause (b) Non of the directors or partners suffer from an of disqualifications mentioned in sub section (4) of section 42.

A brief on institute of surveyors and loss assessors:


The institute of surveyors and loss assessor came into existence with head office at Mumbai on 3th June 1960. The institute has well established system of organizing training classes and conducting licentiate and associate examinations, which is one of the eligible qualifications recognized by government of India, for issue of license of surveyors. Presently institute has 15 chapters across the country.

Present activity:
a) The institute functions under the control of an active and duly elected

managing committee, in accordance with memorandum and articles of association. b) The institute conducts regular meetings and holds an annual general meeting every year where decisions regarding up gradation of surveyors profession is taken by the members. c) Over a period of several years, the institute has developed syllabi and course materials for study in several branches of general insurance, including a handbook on how to conduct surveys for different types of losses. d) The institute regularly conducts meetings with concerned surveyors for improvement in surveyors profession, by organizing regular meet and seminars.

e) The institute is having its own training centers situated at various places of India.

Objects and code of conduct for the surveyors laid by institute:


The primary objective of surveyor is To promote honorable practice To repress malpractices To settle disputed points of practice To decide all questions of professional usage and courtesy between or amongst surveyors. To regulate, control and improve restrictive conditions of the conduct of the profession. To discourage unethical practice and propaganda or misleading and inaccurate claims.

Code of conduct:
The institutes of insurance surveyors and adjusters have evolved a code which is under:i.

ii.

A member shall not directly or indirectly either personally or as a partner or member of any firm or company, advertise individually for work in connection with his profession or as an expert witness. No member shall directly or indirectly, any gratuity discount or trade commission in connection his professional work and his charges to his clients shall be his only remuneration in connection with such work.

iii.

iv. v.
vi.

The relationship between a member and his client or clients shall at all times be strictly fiduciary and he shall not discuss with any third party the details of his instruction or of any document without the knowledge of his client. No member shall accept work in respect of which another member has received instruction unless ha shall first have satisfied himself that he arrangement meets with the approval of the principal concerned. No member shall issue a report over his signature unless the work has been done by himself or his staff. No member shall by commission or in any other way make any payments for the instruction of work offer any financial or other inducement to secure instructions.

What the survey report should contain:


A survey report is the final paper that is handed over to insurer by the surveyor and the merit of survey report would decide the award of claim, necessary action that the insurer may take on the basis of survey report and the most importantly, a survey report conducted by a surveyor will decide whether he will be preferred by the insurer next time or not. So it Is the basic requirement for every surveyor that he conduct the survey work diligently and any prejudice as he has an obligation towards society and particularly towards the insured that if the claim is genuine it must get approved by the insurance company based on the information supplied by surveyor. A comprehensive survey report must comprised following documents: Introduction- It must contain all details of the authorities that have assigned the job and details of the job, which has been asked to be performed. Basic information It contains the insurance policy and Details from the schedule, subject matter of insurance. Sum insured, date of loss, date of FIR, name of the Person who first notice the loss, estimated loss as claimed by the insured. Case in brief- A surveyor must explain the case in brief including therein. a) About the insured b) The premises c) The occurrences

d) Sum assured and its adequacy e) Any other relevant information observed during survey Remarks surveyor will mention the details of his visit with date regarding the place and persons he has inspected/contacted and details of observations drawn by him in chronological order. Special mention- Without giving the details of the place and person he inferences which are of importance in the light of the insurance policy, its exclusions, conditions and warranties must be highlighted. Conclusion On the basis of special mention, net outcome should be reduced properly in a concise manner and there should be no ambiguity in conclusion drawn.

The investigator
A new concept has evolved in the insurance market seeing the complexity and nature of claims, accident that now a days insurer and surveyors face. A few years back a surveyor was himself capable of handling all types of claim that was reported to them by insurer and his judgment was quite satisfactory for both insured and insurer. But as a matter of fact a seasoned surveyor can only be successful in limited area of claim settlement but for a claim where loss is caused due to theft, burglary, fraud, and such other cases an investigator is required.

A common feature of investigation claims:


Though each and every claim has its own merit and requires specific attention for certain points and so is the case with different types of policies. First of all basic information are to be collected from the insurance company and should be studied properly to decide the line of action. Line of action could be of two types:
1. In case of proper information is available on the first hand, then the

investigation work would be started without contacting the insured and information should be collected fro concerned persons directly or indirectly. The insured should be contacted at last after ensuring that he is fixed in such a position that any material information/document could not be altered or damaged.

2. In case where first hand information is not available or not sufficient then insured could be contacted without him having the feel of the gravity of the matter. The questionnaire given to the insured should be designed in such a manner that all important information are in hand and insured is fixed.

Investigation procedure adopted:


The investigation procedure adopted must be jotted down step by step by the investigator and also from his side he must try to put all the required information which he came to know at the time of doing investigation and which could help insurer in settling the claim.

Investigation and remarks


Investigator must mention the detail of his visit with date regarding the place and persons he has inspected/contacted and details of outcome/observations/inferences drawn by him in chronological order.

Special care should be taken that circumstantial evidences alone should not be the basis of the conclusion, because at the present, only circumstantial evidences are insufficient in the eyes of law to decide the case against the insured.

RESULTS AND ANALYSIS


On the basic of information which was obtained from the respondent through questionnaire, the results were prepared. 1. Your specialization in doing survey & loss assessing a) Motor b) Fire c) Car/ear Motor 65% d) Others Fire Car/ear Others 13% 17% 5%

7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 m otor fire ca r/ea r others m otor fire ca r/ea r others

It was found that a surveyor has specialization in so many departments. Like in this result almost every surveyor does survey work for motor and also he has some other specialization.

2. What is your main role as surveyor? a) b) c) d) Pre acceptance of risk Valuation of assets to be insured Loss assessment All of the above

Valuation of assets Loss assessment All of the above

14% 61% 4%

7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 pre acceptance los s as es m s s ent pre acceptance valuation of as ets s los as es m s s s ent all of above

Most of the surveyors are involved in doing loss assessment work. Also companies keep with itself surveyors who survey the properties brought by people to get insured especially motor vehicles.

3. How long have you been survey and loss assessing profession? a) b) c) d) Less than 6 month More than 6 month but less than a year Between 5 years (less than 5 years) More than 5 years

< than 6 months

4%

More than 6 month but 17% less than a year Between 5 year 63%

More than 5 years

16%

4. How frequently you receive a proposal for doing survey and loss assessing for companies? a. b. c. d. Daily 1-3 days 3-7 days More than 7 days Daily 1-3 days 3-7 days More than 7 days 18% 43% 27% 12%

Result - Pre inspection surveyors get daily proposal as almost daily they got to survey of vehicles which come for taking insurance policy or for renewal purpose. Companies ask for survey report of such vehicles and it is immediately done at the premises of company by a surveyor employed by insurer. But surveyors who do car/ear or fire policy get survey work in more than 7 days because such claims doesnt come on daily basis.

5. Is there any time limit to complete the survey & report submitting a) b) c) d) Within a fortnight Within a month Within 6 month No time limit

Result Although there is a time boundation on surveyors to complete the survey work as soon as possible, sometimes it gets delayed due to different

circumstances like not enough support from insured, or difficulty in assessing the loss. I such a situation surveyor is expected to complete the survey work as soon as possible and submit the report along with the reason of delayed so necessary action cab be taken by the insurer.

6. If case of any delay in submission of survey report, what is the most recurrent reason for the same? a) b) c) d) Not enough cooperation from insured Excess workload Complexity of work Not enough 57 Others cooperation Excess workload Complexity of work others 23 7 13

Result as it is clear from the table that the foremost reason for delay in project was due to non cooperation of insured. The reason behind that is that if a insured has obtained a policy by giving wrong information i.e. in case of medic claim policy people generally hide about their critical illness or age or previous policy details and once a claim is lodged they avoid too many questions of surveyor in hope to get the claim amount and in this way survey is delayed. Another reason could be excess workload. A surveyor who has good reputation in market gets proposal frequently and by accepting all he delays the work.

7. Is there any prescribed format for preparing survey report a) Yes, all companies and all branches of insurance b) Yes, all companies but selected branches of insurance c) Yes, some companies and selected branches of insurance d) No

Result IRDA has prescribed a format for preparing the survey report and surveyors are supposed to follow that.

But surveyors use their own conviction for preparing the report which is generally preferred by the insurance companies. All branches of insurance i.e. fire, motor, car/ear, marine has some standard method of preparing the survey report but surveyors do it in their own way.

8. If yes it is prescribed by a) b) c) d) IrDA Insurance companies Own conviction Dont know

60 50 40 30 20 10 0 irda own c iction onv irda c panies om own conviction dont know

Results : As the standard format of survey report is prescribed by irda, insurance companies especially private companies give the format which is more suitable and easily understandable manner. Pre inspection motor surveyors who are employed by insurers for doing survey work within companies premises of vehicles that come for motot policy are given format by insurance company and they do their survey work according to that.

9. Do you think public sector companies are better than private companies(in terms of quality of service)? a) b) c) d) Yes they are better than private companies No they are equal No they are worse than private companies Cant say

10 2% 10 0% 8% 0 6% 0 4% 0 2% 0 0 %

ca s y n't a

priva com nies te pa better tha public n com p equa l

publiccom nies pa better tha n priva com nies te pa

Public companies are better 57% than private companies 7% No they are equal private companies are better than public companies 34%

Cant say Results: Most of the surveyors feel that public companies are better than private companies as they have government control over their function. Unlike private companies, there motive is not to make huge profit but to promote the social cause of securing people. On the other hand private companies lure customers by attractive offers but when it comes to payment of claim they are the one who delay the most. 8. Do you think amendments/updations are required in regulations made by the IrDA? A) Yes once a year B) Yes once in a five years

2%

C) No D) Cant say Yes once in a year Yes once in a five years No Cant say 77 15 5 3

Results - Most of the surveyors feel that there should be amendments frequently in surveyors profession. They say that it was a neglected area where no concrete amendments were brought to upgrading the position of surveyors in market. But in todays times where surveyors value is recognized as one of the important functionaries of insurance market, it is very necessary that some amendment must bring out to make their job more relevant.

Findings
From the study above following findings can be concluded:
a. Surveyors believe that although their profession was neglected for

most of the times, now it has been recognized and steps have been taken by authorities to improve their status.

b. A surveyor is competent to perform his duty well but due to circumstances like not enough support of insured or non responsive attitude of insurer makes the claim delayed and surveyor is blamed for it. c. Now days foreign companies are entering the domestic market, and surveyor in such times wants amendments by authority in this regard to upgrade their skills and knowledge so that they dont lose out in such competitive times. d. Although a large number of private companies have entered in insurance sector they are too far from public companies in terms of services, claim settlement, grievance taking etc. so they have lot more to do before they establish a good brand name among people.
e. It was also found from the result that most of the time the delay in

survey work is caused due to complexity of work, so authority should arrange training program for surveyors for up gradation of their skills.

Conclusion Surveyors are the vital link between the insurer and insured and also a major entity in insurance market and it is impossible to think the proper function of insurance business without a surveyor. They also provide useful information to insurance companies with each survey by their feedback and findings which help insurance companies and underwriters to scrutinize a proposal before accepting it. It is also in the favor of insurance companies if the role of surveyors are recognized and improved in the market as it will help and reduce their work load and increase their effectiveness.

References: In my project, following references have been made:

Newspapers, journals, research papers and articles

IrDA journals Publications of Asia insurance review Financial express Business standard Articles on new role of surveyors in current insurance market. Insurance times LOMA research papers

Other booksN.K.Malhotra and Satyabhushan dash, marketing research, an applied orientation P.S.Palande, R.S.Shah, insurance in india, settlement of claim and emerging opportunities for surveyors Also various books were provided by companies which were meant for their own purpose Internet sourceswww.wikipedia .com www.gogle.com www.irda.org Iisla.org (website for surveyors and loss assessors) www.uiic.co.in

QUESTIONNAIRE ROLE AND FUNCTIONS OF SURVEYOR AND LOSS ASSESSORS IN INSURANCE MARKET .

As per the requirement of my summer internship project, I am doing a project

titled role and functions of surveyors and loss assessors in current insurance market therefore please fill this questionnaire as per the requirement.
The survey is being done for the sole purpose of education purpose and responses will be kept confidential. Name of the respondent: Age: Email Id: Contact no: Address: 1. Your specialization in doing survey & loss assessing a) Motor b) Fire c) Car/Ear d) Others 2. What is your main role as a surveyor? a) Pre-acceptance risk inspection b) Valuation of assets to be insured c) Loss assessment d) All of the above How long have been in survey &oss assessing profession? a) b) c) d) Less than 6 month More than 6 month but less than 1 year Between 5 years (Less than 5 years) More than 5 years

3.

4. How frequently you receive a proposal for doing survey & loss assessing for companies a) Daily b) 1-3 days c) 3-7 days (4-7 days) d) More than 7 days 5. Is there any time limit to complete the survey & report submitting (What is the time limit to complete the survey & report submitting?) a) Within a fortnight b) Within a month c) Within 6 months d) No time limit 6. If there is delay in doing survey what is the common reason for it (In case of any delay in submission of Survey Report, what is the most recurrent reason for the same ?) a) Not enough support from insured (Not enough cooperation from the indured) b) Excess work load c) Complexity of work

d) Others

7. Is there any prescribed format for preparing survey report a) Yes ,all Companies and all Branches (Fire, Marine, Motor etc) of Insurance b) Yes ,all Companies but selected Branches (Fire, Marine, Motor etc) of Insurance c) Yes , some Companies and selected Branches (Fire, Marine, Motor etc) of Insurance d) No 8. If yes it is prescribed by a) IRDA b) Insurance Companies c) Own conviction d) Dont know 9. Do you think that Public Sector Companies are better than private companies (in terms of quality of service)? a) Yes, they are better than private companies b) No, they are equal c) No, they are worse than private companies d) Cant say 10. Do you think amendments/updations are required in regulations made by the IRDA? a) Yes, once a year b) Yes, once in 5 years c) No d) Cant say 11. From which company have you taken professional indemnity insurance? a) PSU- NI,OIC, UIIC,NIC b) Private Insurance Co- please mention name of the company c) Not taken d) Thinking of taking the same in near future.