Insurance Regulatory and Development Authority (IRDA) today released an exposure draft to revamp the Indian Institute of Surveyors and Loss Assessors (IIISLA) to make it more vibrant, responsible and professional in line with the objectives for which it was incorporated.
IIISLA was set up by IRDA to ensure that contractual relationship of SLAs with insurer and the insured is governed professionally. Also it ensures that consumers and development of consumer confidence in the Insurance market.
Surveyors and Loss Assessors (SLAs) play an important role in respect of assessment of losses in the general insurance business when a contingency insured under the contract of insurance arises. SLAs are necessary under section 64UM of the Insurance Act’1938 which requires that a duly licenced SLA has to submit a report in respect of any claim where the loss is over Rs 20,000 in value, on a policy issued by any of the general insurers registered with IRDA.
The regulator said that it is necessary that the institute should have its own permanent secretariat and administrative staff to perform necessary functions delegated to it. IRDA has proposed to pay a grant of Rs 75,000 per month to IIISLA to enable it to have its secretariat.
IRDA, in the draft, said that membership of IIISLA must be made compulsory for all surveyors who wish to obtain a licence to act as surveyor and loss assessor. Further, it has been proposed that before a surveyor moves from one category to higher category, he should undergo a specified hours of training mandated by IIISLA.
The draft said that the profession of surveyors and loss assessors has to be carried in such a manner that, not more than 30 per cent of the mandate of assessment of losses is entertained by an individual SLA or an SLA company.
Presently an applicant seeking an SLA licence should pass an examination conducted by Insurance Institute of India (III). The proposal, by IRDA, is to have IIISLA conduct this exam. Examination by III shall continue for some time till IIISLA graduates to that level. For this, it has been decided that IIISLA should set up a system to conduct practical training, undertake pre-examination online/class room level system of education and training.
Since the membership of all the licence holders shall be mandatory in the regulatory provision, IRDA advised that IIISA must notify its Code of Ethics with the prior concurrence of the IRDA and ensure that its members comply with the same.
The regulator said that the views and comments of the General Insurance Council, IIISLA and observations from other members would need to be given within 15 days, so that further steps are taken firmly and quickly.
