In an effort to make motor insurance claim settlement easier, insurance regulator IRDAI has proposed to increase the limits of self-assessment of damage. Note that the current limit for self-declaration by customers for motor accident claim is Rs 50,000 and for fire, marine, home and other insurance claims it is Rs 1 lakh.
Currently, any claim above that limit has to be assessed by an insurance surveyor. It is to be mentioned that the exposure draft is prepared for carrying out amendment of the existing Insurance Regulatory and Development Authority of India (Insurance Surveyors and Loss Assessors) Regulations, 2015.
According to the new proposal, customers can self-declare in case of motor accidents up to Rs 75,000, and for non-motor claims up to Rs 1.5 lakh. IRDAI on Friday released its draft exposure. This relaxation comes at a time when insurance companies are using app-based AI to assess insurance claims.
IRDAI said, “The enhancement of limits for small claims will help to utilise the manpower available within the insurance company for survey work up to the loss limits so that such small claims are settled expeditiously.”
IRDAI said in its proposal that the rationale for amendment is “Claim payment is the moment of truth and the insurance surveyor and loss assessor plays a pivotal role in assessing the losses in case of general insurance claims. After a detailed analysis of various recommendations made by the above mentioned Committees as well as the Working Group, in an attempt to facilitate wider participation of younger generation to become surveyors, to meet the varied professional requirements of general insurance market and to rationalise the licensing requirements, it is felt essential to streamline the regulatory framework through amendment.”
The proposal is also looking to make it possible for online licensing and renewals for surveyors with digitisation. IRDAI is also looking at revising the fee structure and duties and responsibilities of surveyors. The regulator is also looking at making insurers more responsible for the instruction, education and financial well-being of surveyors.
Another amendment in the proposal is more flexibility in the appointment of surveyors. Usually, the authority reviews this once in three years, but the proposal hopes to review time-to-time on a need basis……..Read more>>