Why An Insurance Surveyor Is Important

Modern life is replete with challenges and unforeseen situations which require protection and a security cover. Whether you’re a working professional, a businessman or a homemaker, fact is that in today’s world getting oneself insured along with one’s assets is a wise thing.

However, the insurance sector is not a one-way traffic. Just as prospective and existing policy holders need a security blanket, insurers also need the services of a professional who helps them run their business and deliver services in an efficient and simple manner. These professionals, commonly known as ‘insurance surveyors’ have a critical role that can make or break an insurance company. A surveyor has responsibilities in context of different types of insurance – like motor insurance, property insurance (fire, flood, etc.) This blog explores how it is in the best interest of the policy holder to make full disclosure to the surveyor.

What do surveyors do?

Essentially, surveyors are a bridge between policy holders and an insurance company. Their role is to make an assessment of the damage or loss incurred against a policy. Whenever a claim is filed by a policy holder, the concerned insurance company appoints a surveyor to assess the loss and submit a report quantifying the claim payable under the policy. In accordance to the Insurance Act, all the claims above Rs 20,000 have to be surveyed by an independent professional.

Basically, surveyors are independent professionals (not a part of the insurance company) licensed by IRDA. The whole concept of appointing a surveyor is to ensure that no false claims are filed and there is no business loss, as a consequence of those claims.

Role of Surveyors in different types of insurance categories

The role of an insurance surveyor is quite an extensive task. In fact, these professionals conduct surveys of everything from transport, buildings, machinery, other sites or art pieces/antiques or any other items that need to be insured. Their entire work depends upon their assessments which are formulated into reports. These, in turn, help decide the terms and conditions of insurance policies. Their areas of specialization include:

Accidents and Liability – assessing the possible risks to employees, customers and visitors to a building or site.

Fire and Perils – examining plans, construction and fire protection systems to assess the risks to a building and its contents.

Burglary and Theft – inspecting business premises to check how goods are stored and improve security.

Engineering Insurance – surveying mechanical and industrial plants, machinery and equipment for any faults and risks.

Art and Artifacts – surveying and valuing art objects

As a rule, the insurance business works on a simple principle. This is known as the ‘principle of indemnity.’ It means that the customer is put in the same position financially in which he was before he incurred a damage/loss. To avoid any sort of problem, the surveyor caps this possibility by assessing the loss. Then he gives a report to the company on whose basis the claim is settled.

It is always a good idea to make a full and accurate disclosure to the surveyor at the time of making a claim. This is because, if the insurance company detects any foul play, they would evoke the principle of ‘utmost good faith’ and may reject the claim.