In a move that will facilitate quicker settlement of claims, the Insurance Regulatory and Development Authority of India (Irdai), on Friday, proposed enhancement of loss limits for appointments of surveyors.
The draft says that appointment of surveyors for motor insurance claims will now happen only for loss limit over ₹75,000 and above ₹1,50,000 for non-motor general insurance policies such as home insurance. “The rationale behind this is to ease the process of claim settlement and expedite disbursement of claim amount as maximum number of claims filed fall under ₹75,000. This will help the insurer make better use of the resources within the company rather than hiring surveyors for small-ticket claims," said Dhirendra Mahyavanshi, co-founder, Turtlemint, an insurance aggregator. Until now, every motor claim above ₹50,000 and non-motor claims more than ₹1,00,000 required the appointment of a surveyor.
But does this mean a rise in premiums for policyholders? Mahyavanshi said it’s unlikely this move would have any impact on premium rates. Abhishek Bondia, principal officer and managing director, SecureNow.in, too said this will have limited implications on premiums because the loss adjustment expenses are relatively small as compared to the overall loss amounts. "This will lead to faster response time on claims. Insurers can assign the survey to an in-house staff rather than a third party. Insurers will also be able to better control the user experience," he added.
The draft regulations have been placed for feedback by the stakeholders and comments are welcome till 21 November, 2019.