1.

P 196 needs amendment as given in RED

ii. Assessment Phase

Independent automobile surveyors are assigned the task of assessing the cause and extent of
loss where the loss is more than Rs. 50,000/- (as per Insurance Surveyours and Loss
Assessors Regulations 2015 ). They are provided with a copy of the policy, the claim form
and the repairer's estimate. They inspect the damaged vehicle, discuss the cost of repair or
replacement with the repairer and submit their survey report.
In respect of minor damage claims, where the loss is less than Rs. 50,000/- independent
surveyors are not necessarily appointed. The insurers' in house officials or their own
automobile engineers inspect the vehicle and submit an assessment report.

2. Page 206 needs amendment as given in RED

Which of the following statement is correct?

I. In every case, independent automobile surveyors are assigned the task of assessing the
cause and extent of loss irrespective of the amount of loss.
II. Independent automobile surveyors are assigned the task of assessing the cause and extent
of loss where the loss is more than Rs. 50,000/-.
III. The insurer, insured and the agent mutually decide to appoint an independent automobile
surveyor to assess the cause and extent of loss where the loss is more than Rs. 50,000/-.
IV. The insurer and insured independently appoint their own automobile surveyor to assess
the cause and extent of loss where the loss is more than Rs. 50,000/-. The insurer and the
insured jointly study the two reports and mutualy agree to the loss amount to be paid

3. Page 240 needs amendment as given in RED

Answer 1
The correct answer is II.
Independent automobile surveyors are assigned the task of assessing the cause and extent of
loss where the loss is more than Rs. 50,000/-.

4. Page 70 needs amendment as given in RED

e) Passengers carrying vehicles

All vehicles used for hire or reward with different registered passenger carrying capacity are
categorised under class C. These may be metered or non-metered. They also include vehicles
owned by hotels and hired to guests.

Three–wheeler motorized vehicles are also part of this class of vehicle. A new type of vehicle
introduced is “e-cart or e-rickshaw” by Motor Vehicle Amendment Act 2015

“e-cart or e-rickshaw” means a special purpose battery powered vehicle of power not
exceeding 4000 watts having three wheels for carrying goods or passengers, as the
case may be, for hire or reward, manufactured, constructed or adapted, equipped and
maintained in accordance with such specifications, as may be prescribed in this
behalf.”.

Sec 9(10) the driving licence to drive e-cart or e-rickshaw shall be issued in such
manner and subject to such conditions as may be prescribed.”

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Irdai hikes loss amount for surveyor & assessor services - Business Standard –
8th April 2015

Only claims above Rs 50,000 for motor insurance and Rs 1 lakh for others would qualify
for the services of insurance surveyors and loss assessors, according to a recent Irdai
directive.
The Insurance Act, 1938, mandated the licensing of surveyors and loss assessors for
settlement of losses above Rs 20,000 reported under a policy of general insurance.
However, in its Insurance Surveyors and Loss Assessors Regulations, 2015, the
Insurance Regulatory and Development Authority of India (Irdai) said the licence of
these entities will be valid only for three years. The cooling off period after suspension
or cancellation has been reduced from three to one year. If there is an appeal, the
insurance surveyors and loss assessors can move the Securities Appellate Tribunal
against the decision of the authority.
Foreign investment allowed up to 49 per cent as per the Rules of Central Government
will be applicable for insurance surveyors and loss assessors.

Hiked rates
Looking into the sudden and adverse impact, policyholders of such an increase in rates
and taking into consideration the comments received in the exposure draft. The
regulator had decided to moderate the rate increase in case of private cars, two
wheelers with a engine capacity between 150 cc and not exceeding 350 cc, goods
carrying vehicles and four-wheeled vehicles used for carrying passengers for hire,
among others.
Similarly, in case of two wheelers exceeding 350 cc, good carrying vehicles/public
carries, and motorised two wheelers among others, IRDAI moderated proposed rate
reductions.
Some of revised premium rates are: for
private cars not exceeding 1,000 cc – Rs 1,468 (existing rate Rs 1,129),
private cars exceeding 1,000 cc but not exceeding 1,500 cc – Rs 1,598 (Rs 1332),
private cars exceeding 1,500 cc – Rs 4,931 (Rs 4,109),
two wheelers not exceeding 75 cc – Rs 519 (Rs 455),
two wheelers exceeding 75 cc but not exceeding 150 cc – Rs 538 (Rs 464), exceeding
150 cc but not exceeding 350 cc – Rs 554 (Rs 462).

For two wheelers exceeding 350 cc, there has been no increase in premium rate at Rs
884.

The cost inflation index (CII) had increased by 9.05 per cent over the previous year, i.e.
from 939 in FY 2013-14 to 1,024 in FY 2014-15, IRDAI said.

THE MOTOR VEHICLES (AMENDMENT) BILL, 2015

“2A (1) Save as otherwise provided in the proviso to sub-section (1) of section 7 and
sub-section (10) of section 9, the provisions of this Act shall apply to e-cart and e-
rickshaw.
(2) For the purposes of this section, “e-cart or e-rickshaw” means a special purpose
battery powered vehicle of power not exceeding 4000 watts having three wheels for
carrying goods or passengers, as the case may be, for hire or reward, manufactured,
constructed or adapted, equipped and maintained in accordance with such
specifications, as may be prescribed in this behalf.”.
4. In the principal Act, in section 9, after sub-section (9), the following sub-section shall
be inserted, namely:—
“(10) Notwithstanding anything contained in this section, the driving licence to drive e-
cart or e-rickshaw shall be issued in such manner and subject to such conditions as
may be prescribed.”

Car owners may see faster claim settlement - Business Standard – 16th April 2015 Car owners might see
faster claim settlement, with the insurance regulator proposing an increase in the limit for hiring
external insurance surveyors. The Insurance Regulatory and Development Authority of India (Irdai) has
proposed the limit for appointing external surveyors be increased to Rs 50,000 for motor claims and Rs 1
lakh for other claims. To settle claims up to these amounts, general insurance companies need not have
to appoint an external surveyor. It can be done by an in-house surveyor. The earlier limit was Rs 20,000
for all claims. The new rule has both advantages and disadvantages, say experts. The biggest advantage
is that claims can be settled faster. According to Chandan Grover, vice-president, risk management and
claims, Prudent Insurance Brokers, with many customers buying high-end cars, there has been an
increase in the average amount of claims. But, due to the lower limit, insurance companies had to wait
for external surveyors’ assessment before settling. “Surveyors are few in number and overburdened.
Hence, getting an external surveyor’s report for settling the claim used to cause delays. Now, insurance
companies will be able to settle more claims using an in-house surveyor,” he says. Divya Gandhi, head,
general insurance & principal officer at Emkay Insurance Brokers, also agrees the increase in the limit
will ensure faster settlement of small claims and reduce cost for insurance companies. “The number of
claims, especially in private vehicles, have gone up as more people buy high-end cars. But insurance
companies do not have enough surveyors,” she says. One reason for the shortage of surveyors is the low
remuneration, says a senior official with a private general insurance company. However, as more claims
get settled in-house, companies will need to ensure the in-house surveyors are qualified for the survey.
“Companies will have to ensure the surveyors they appoint are competent to negotiate with the
workshop for repair costs. Otherwise, the owner might end up getting over-charged,” Grover says.
There is also a possibility that the in-house surveyor, being a company employee, might be biased
towards the company. He might try to save the company money by reducing the claim amount, Gandhi
points out. In such Source Source Insunews – weekly e-Newsletter 7 Issue No. 2015/16
www.insuranceinstituteofindia.com cases, vehicle owners can approach the grievance redressal cell of
the insurance company to review the claim. If that does not work, the next step is to approach the
insurance ombudsman and then Irdai. If the dispute is still not addressed, he can can take the legal
route by approaching a court of law.

A customer can also appoint a surveyor on his own expense and the second surveyor’s report too is
acceptable in the court of law, Grover adds. However, according to the insurance official, in case of
private vehicles disputes are few. “With zero depreciation covers becoming popular, we don’t see much
disputes in private car claims,” he says.

1942 Surveyour licences renewed and 535 new issued in 2014-15

Non-life insurance has a lot of catching up to do - The Financial Express – 16th April 2015

While general insurance in India has seen an 18% CAGR during 2005-14, when compared with global
benchmark, its reach is still very low. For instance, home insurance penetration is less than 1% visa-vis
global benchmark of 95%. Personal health insurance, two-wheelers, SME and rural risk coverage are also
substantially lower. India has the highest combined ratio across countries because of a higher claims
ratio. As a result, the industry has delivered poor returns to shareholders.